Close

Washington State adopts packaging Extended Producer Responsibility law as seventh West Coast state; legislation requires producers to cover 90% of recycling costs by 2032

May 25, 2025 Press Release 20 min read

Exclusive Industry Insights

By submitting, you agree to our Privacy Policy

Share this article:

May 25, 2025 (press release) –

The packaging policy across the country is shifting, as states adopt legislation spanning data reporting to label design. From Maine to California—and all the states in between—there’s a lot to keep track of in the world of packaging policy.

Whether you’re an engineer, a designer, or just a fan of sustainable packaging, SPC’s Senior Project Manager and Packaging EPR Collaborative Lead Lucy Pierce is breaking down noteworthy policy updates every month.

May packaging policy roundup

1. With Washington’s EPR Passage, 1 in 5 Americans Lives in a State with EPR

Update: Washington state passes packaging EPR legislation. 

On May 17, 2025, Washington Gov. Bob Ferguson signed The Recycling Reform Act (SB 5284) into law, making Washington the 7th and final West Coast state with a packaging Extended Producer Responsibility (EPR) law. The recent passage of this law, plus Maryland’s EPR law, means that 1 in 5 Americans now lives in a state with packaging EPR.

What’s noteworthy about Washington’s EPR law? 

Washington state’s Recycling Reform Act shares a similar funding model with Minnesota’s packaging EPR law. Known as a “partial funding model,” Washington (like Minnesota) makes producers partially responsible for funding recycling programs in the state, and leaves some of the costs with taxpayers in the state.

In Washington, the Producer Responsibility Organization (PRO) is responsible for the costs and operations of recycling. Under the state’s EPR program, the PRO’s reimbursement of recycling costs must equal:

  • On or before February 15, 2030: The PRO will cover no less than 50% of the net costs
  • On or before February 15, 2031: The PRO will cover no less than 75% of the net costs
  • On or before February 15, 2032, and each year thereafter: The PRO will cover no less than 90% of the net costs

2. Maryland Passes EPR

Update: Maryland becomes 6th state with packaging EPR law. 

On May 13, 2025, Maryland Gov. Wes Moore signed The Packaging and Paper Products Producer Responsibility Plans (SB 901) into law, making Maryland the 6th state with a packaging Extended Producer Responsibility (EPR) law.

What’s noteworthy about Maryland’s EPR law? 

Maryland’s EPR law also uses a partial funding model, similar to Minnesota and Washington’s models.  This means that producers will never fully pay for the cost of recycling and operations, but will eventually pay for 90% of those costs.

Under Maryland’s EPR program, the state’s chosen PRO would be responsible for the following costs by the deadlines below:

  • On or before July 1, 2028: The PRO will cover at least 50% of the cost per ton 
  • On or before July 1, 2029:  The PRO will cover at least 75% of the cost per ton 
  • On or before July 1, 2030, and each year thereafter: The PRO will cover at least 90% of the cost per ton

3. Hawaii Advances EPR Needs Assessment to Governor

What is a Needs Assessment for EPR?

A Needs Assessment is a process some states use as a first step to enacting EPR. Some experts even call it a PrePR (pre-EPR) bill.

A Needs Assessment essentially compels the state to identify and evaluate its resources, infrastructure, and actions required to implement or improve a packaging EPR system. It helps stakeholders — such as producers, regulators, municipalities, and waste management organizations — understand the current state of recycling in the state, and the opportunities for improvement.

What is happening with EPR in Hawaii?

On May 2, 2025, the Hawaii State Legislature passed an EPR Needs Assessment bill (HB 750) onto Gov. Josh Green’s desk for signature. Introduced by State Rep. Nicole Lowen, who has worked on EPR in the state for years, the Needs Assessment bill has finally made its way out of both Chambers and onto the Governor.

Despite the bill’s advancement, SPC’s Packaging EPR Collaborative Lead Lucy Pierce says that pro-EPR advocates should be cautiously optimistic. “Given the geography of Hawaii, waste management poses obvious challenges,” Lucy said. “And Hawaii, like many other states, is dealing with constrained budgets, which could present challenges when it comes to securing funding for a Needs Assessment.”

Gov. Green has until July 9, 2025 to pass or veto the bill; and in Hawaii, if the governor neither signs nor vetoes by the deadline, the bill becomes law.

Why does this bill matter?

Hawaii’s unique island geography makes waste management particularly complex and costly, with limited landfill space and reliance on incineration in some areas. This bill seeks to generate a comprehensive understanding of how to reduce packaging waste statewide — whether landfilled, burned for energy, or otherwise managed.

This PrePR bill would cover the funding for the Department of Health to contract a recycling, composting, and waste Needs Assessment and to develop an advisory council to review the draft Needs Assessment and propose recommendations.

What should I know about Hawaii’s early EPR attempt?

Hawaii’s current EPR Needs Assessment bill would form an advisory council, which would bring together a diverse group of stakeholders, including:

  • Waste management departments from each county
  • A national producer organization or producer trade association
  • A Hawaii-based producer or producer association
  • Experts or operators in reuse, refill, or circular economy systems
  • Hawaii-based refuse and recycling service providers
  • Hawaii-based recycling collection and processing service provider 
  • Hawaii-based retailer
  • Hawaii-based organizations and community groups involved with waste management or relevant environmental advocacy
  • An environmental or human health scientist
  • A manufacturer of consumer packaged goods
  • The composting industry

To learn more, you can read the full bill here.

4. Maine Legislators Introduce EPR ‘Fix It’ Bill

What is the latest on Maine’s EPR program?

Maine was the first state to pass packaging EPR in 2021; however, the state’s EPR program won’t go into effect until 2027. Since its passage, six other states have adopted packaging EPR laws. And though Maine led the way, its program is currently less harmonized with these subsequent efforts, creating complications for producers operating across multiple states.

To amend the EPR law toward better state-by-state alignment, legislators have introduced “An Act to Improve Recycling by Updating the Stewardship Program for Packaging,” colloquially known as a ‘fix it’ bill. The bill, SB 1423, would correct some inconsistencies between Maine and other states’ EPR programs.

Why do legislators and industry want to fix Maine’s EPR program?

In short, the current state of Maine’s EPR law would make it difficult for producers to operate and comply across different states.

According to Susan Bush, EPR project manager at the nation’s most prominent PRO Circular Action Alliance, “The categories Maine is proposing don’t line up with other states that have approved packaging EPR, and the result will be over 200 distinct reporting categories across Maine, California, Oregon and Colorado.”

This bill would help move Maine’s program a bit closer to the other states with EPR laws, and many stakeholders across industry and ENGOs are supportive.

What would Maine’s EPR ‘Fix It’ bill do?

The ‘fix it’ SB 1423 seeks to align key elements of Maine’s packaging EPR law with those of other states, helping to reduce regulatory fragmentation. One major focus is standardizing covered product exemptions. For example, the bill would exempt packaging for:

  • Federally regulated products such as prescription and over-the-counter drugs, medical devices, and biological products
  • Hazardous or flammable materials
  • Products regulated under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA)
  • Packaging used exclusively for commercial or industrial customers
  • Infant formula, dietary supplements, cosmetics, and other items regulated under the Federal Food, Drug, and Cosmetic Act
  • Products developed or manufactured for public health, environmental, or water quality testing

These exemptions are intended to mirror similar carve-outs in other state EPR laws, easing compliance for producers.

What’s the status of this bill and where can I learn more? 

SB 1423 is currently in the Maine Legislature’s Committee on Environment and Natural Resources, where it has remained for over a month. However, movement is expected soon as negotiations over amendments are reportedly gaining traction.

To learn more about the bill, you can check its status here and read the bill text here.

april packaging policy roundup

1. EPR Advances in Washington and Maryland

What’s happening with EPR in Washington? 

Update: In Washington, after six attempts to pass Extended Producer Responsibility (EPR) legislation, on April 23 state legislators advanced The Recycling Reform Act (SB 5284) to the Governor’s desk for signature.

Gov. Bob Ferguson now has 20 days to sign.

If passed, Washington would be the sixth state and final West Coast state to adopt EPR. SB 5284’s passage would also mean that 19.3% of Americans live in states with EPR laws.

What’s happening with EPR in Maryland? 

On April 7, 2025, the Maryland legislature passed the state’s EPR bill, Packaging and Paper Products Producer Responsibility Plans onto the Governor’s desk for signature. Experts expect that Gov. Wes Moore will sign the bill into law before the 30-day deadline. If Maryland and Washington both pass their EPR laws, 1 in 5 Americans will live in a state with an EPR program

2. Policies Target Polystyrene Foam: 13 State Bills Proposed in Early 2025

What’s happening with polystyrene regulations in 2025?

Across the country, legislative targets have not let up on expanded polystyrene foam (EPS, commonly known as “Styrofoam”): At the federal level, a Senate and House bill is taking aim at polystyrene, and at the state level, California has confirmed its ban of expanded polystyrene (EPS) food service ware and at least 13 polystyrene related bills were introduced in various states.

Where are polystyrene regulations advancing?

  • Federal.: Although passage of federal polystyrene regulations are unlikely in the current political climate, some big names like Sens. Cory Booker, Elizabeth Warren, and Bernie Sanders have all co-sponsored the re-introduced Farewell to Foam Act in 2025. 
  • California: California’s EPR law has placed a de facto ban on expanded  polystyrene foam food serviceware  in the state. CalRecycle, the state agency tasked with implementing EPR, recently announced that the requirement for all expanded polystyrene food serviceware to meet a 25% recycling rate in the state has not been met. Now, “EPS producers are prohibited from selling, offering for sale, distributing, or importing EPS food serviceware, such as single-use takeout containers and cups, in or into California.” 
  • Alaska: In Alaska, HB 25 would ban polystyrene food serviceware statewide in restaurants and food service establishments; however, the bill would allow some exemptions like ice coolers and use in areas affected by disasters for the duration of the emergency.  
  • Massachusetts: The Bay State is juggling multiple bills that would ban polystyrene statewide in retail and food service environments, including a bill requiring the state, and all state contractors, to stop purchasing polystyrene packaging.
  • Nevada: In Nevada, the proposed polystyrene ban, AB 244A.B. 244 ASSEMBLY BILL NO. 244–ASSEMBLYMEMBER CONSIDINE FEBRUARY 17, 2025 ____________ Referred to Committee on Health and Human Services SUMMARY—Enacts prohibitions relating to the use of disposable foodware containers containing polystyrene foam by certain food establishments. (BDR 40-685) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to food establishments; prohibiting certain food establishments from selling, preparing, providing or transporting food or beverages using disposable foodware containers made from polystyrene foam; providing civil penalties; and providing other matters properly relating thereto. Legislative Counsel’s Digest: 1 Existing law establishes various requirements for food establishments. (Chapter 2 446 of NRS) Beginning on July 1, 2025, section 3 of this bill: (1) prohibits a food 3 establishment with 10 or more locations doing business in this State which offer a 4 menu of substantially similar items from selling, preparing, providing or 5 transporting food or beverages using a disposable foodware container that is made 6 wholly or partially from polystyrene foam; and (2) makes a willful and knowing 7 violation of this prohibition subject to a civil penalty not to exceed $1,000 for each 8 violation. Section 3 exempts from this prohibition a food establishment that is part 9 of a business that has less than 10 locations in this State, unless the food 10 establishment has 1 or more locations doing business in states other than Nevada 11 which have prohibited the use of disposable foodware containers made wholly or 12 partially from polystyrene foam. If, before July 1, 2025, an owner or operator of a 13 food establishment purchased disposable foodware containers made wholly or 14 partially from polystyrene foam, section 6 of this bill authorizes the food 15 establishment to use the remaining inventory of such disposable foodware 16 containers. 17 Beginning on January 1, 2029, section 5 of this bill prohibits any food 18 establishment from selling, preparing, providing or transporting food or beverages 19 using disposable foodware containers made wholly or partially from polystyrene 20 foam. 21 Section 2 of this bill applies the definitions in existing law relating to food 22 establishments to the provisions of section 3. - *AB244* – 2 – 23 Section 4 of this bill provides that a violation of this prohibition is not a 24 misdemeanor. THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: 1 Section 1. Chapter 446 of NRS is hereby amended by adding 2 thereto the provisions set forth as sections 2 and 3 of this act. 3 Sec. 2. As used in this chapter, unless the context otherwise 4 requires, the words and terms defined in NRS 446.0145 to 5 446.069, inclusive, have the meanings ascribed to them in those 6 sections. 7 Sec. 3. 1. A food establishment that has 10 or more 8 locations doing business in this State which offer a menu 9 consisting of substantially similar items shall not sell, prepare, 10 provide or transport food or beverages using a disposable 11 foodware container that is made wholly or partially from 12 polystyrene foam. 13 2. A person who willfully and knowingly violates the 14 provisions of this section is subject to a civil penalty not to exceed 15 $1,000 for each violation. 16 3. The provisions of this section do not apply to a food 17 establishment that has less than 10 locations doing business in this 18 State unless the food establishment has 1 or more locations doing 19 business in states other than Nevada that have prohibited the use 20 of disposable foodware containers made wholly or partially from 21 polystyrene foam. 22 4. As used in this section: 23 (a) “Disposable foodware container” means a single-use or 24 disposable item that is used for heating, preparing, packaging, 25 serving or transporting a prepared or ready-to-eat food or 26 beverage item. The term includes, without limitation, bowls, plates, 27 trays, cartons, clamshells, cups, lids, containers or condiment 28 cups. 29 (b) “Polystyrene foam” means blown polystyrene, commonly 30 known as Styrofoam, and expanded or extruded foams consisting 31 of thermoplastic petrochemical materials utilizing a styrene 32 monomer and processed by fusion, injection molding, foam 33 molding or extrusion blow molding. 34 Sec. 4. NRS 446.945 is hereby amended to read as follows: 35 446.945 Except as otherwise provided in NRS 446.872 [,] and 36 section 3 of this act, any person who violates any of the provisions 37 of this chapter is guilty of a misdemeanor. In addition thereto, such 38 persons may be enjoined from continuing such violations. Each day - *AB244* – 3 – 1 upon which such a violation occurs shall constitute a separate 2 violation. 3 Sec. 5. Section 3 of this act is hereby amended to read as 4 follows: 5 Sec. 3. 1. A food establishment [that has 10 or more 6 locations doing business in this State which offer a menu 7 consisting of substantially similar items] shall not sell, 8 prepare, provide or transport food or beverages using a 9 disposable foodware container that is made wholly or 10 partially from polystyrene foam. 11 2. A person who willfully and knowingly violates the 12 provisions of this section is subject to a civil penalty not to 13 exceed $1,000 for each violation. 14 3. [The provisions of this section do not apply to a food 15 establishment that has less than 10 locations doing business in 16 this State unless the food establishment has 1 or more 17 locations doing business in states other than Nevada that have 18 prohibited the use of disposable foodware containers made 19 wholly or partially from polystyrene foam. 20 4.] As used in this section: 21 (a) “Disposable foodware container” means a single-use 22 or disposable item that is used for heating, preparing, 23 packaging, serving or transporting a prepared or ready-to-eat 24 food or beverage item. The term includes, without limitation, 25 bowls, plates, trays, cartons, clamshells, cups, lids, containers 26 or condiment cups. 27 (b) “Polystyrene foam” means blown polystyrene, 28 commonly known as Styrofoam, and expanded or extruded 29 foams consisting of thermoplastic petrochemical materials 30 utilizing a styrene monomer and processed by fusion, 31 injection molding, foam molding or extrusion blow molding. 32 Sec. 6. Notwithstanding the provisions of section 3 of this act, 33 if, before July 1, 2025, the owner or operator of a food 34 establishment, as defined in NRS 446.020, purchased disposable 35 foodware containers, as defined in section 3 of this act, that are 36 made wholly or partially from polystyrene foam, as defined in 37 section 3 of this act, for use in or by the food establishment, the food 38 establishment may use any remaining inventory of the disposable 39 foodware containers until the inventory of such disposable foodware 40 containers is depleted. 41 Sec. 7. 1. This section and sections 1 to 4, inclusive, and 6 of 42 this act become effective on July 1, 2025. 43 2. Section 5 of this act becomes effective on January 1, 2029. H - *AB244*, would prevent food establishments from using polystyrene foam packaging for food and beverages. In the first year of the program, this would only impact food establishments with 10 or more locations in the state. 
  • Kentucky: The Bluegrass State also saw a billUNOFFICIAL COPY 25 RS BR 1396 1 AN ACT relating to plastic waste. 2 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3 Section 1. KRS 224.50-585 is amended to read as follows: 4 (1) As used in this section: 5 (a) "Rigid plastic container" means any formed or molded article comprised 6 predominantly of plastic resin and having a relatively inflexible finite shape or 7 form intended primarily as a single service container with a capacity of eight 8 (8) ounces or more and less than five (5) gallons; 9 (b) "Rigid plastic bottle" means any rigid plastic container with a neck that is 10 smaller than the container body with a capacity of sixteen (16) ounces or more 11 and less than five (5) gallons;[ and] 12 (c) "Label" means a code label described in this section molded into the bottom 13 of the plastic product; 14 (d) "Mil" means a unit of measurement that equals one one-thousandth 15 (0.001) of one (1) inch; 16 (e) "Plastic bag" means a thin film bag made of plastic derived from petroleum 17 that is not biodegradable and is less than two and one-half (2.5) mils in 18 thickness; 19 (f) "Plastic balloon" means a balloon made from nonbiodegradable plastic, 20 latex, or the resin polyethylene terephthalate; 21 (g) "Plastic beverage straw" means a single-use beverage or stirring straw 22 made from plastic derived from petroleum that is not biodegradable; and 23 (h) "Polystyrene foam" or "Styrofoam" means a lightweight, rigid, 24 thermoplastic foam made from a polymer of styrene. 25 (2) All rigid plastic bottles and rigid plastic containers sold in Kentucky on and after 26 January 1, 1992, shall be labeled with a code which indicates the resin used to 27 produce the rigid plastic bottle or rigid plastic container. The code shall consist of a Page 1 of 3 XXXX 2/3/2025 9:48 AM Jacketed UNOFFICIAL COPY 25 RS BR 1396 1 number placed inside a triangle and letters placed below the triangle. The triangle 2 shall be equilateral, formed by three (3) arrows with the apex of each point of the 3 triangle at the midpoint of each arrow, rounded with a short radius. The pointer or 4 arrowhead of each arrow shall be at the midpoint of each side of the triangle with a 5 short gap separating the pointer from the base of the adjacent arrow. The triangle, 6 formed by the three (3) arrows curved at their midpoints, shall depict a clockwise 7 path around the code number. The numbers and letters used shall be as follows: 8 1 = PETE (polyethylene terephthalate) 9 2 = HDPE (high density polyethylene) 10 3 = V (vinyl) 11 4 = LDPE (low density polyethylene) 12 5 = PP (polypropylene) 13 6 = PS (polystyrene) 14 7 = OTHER (represents all other resins, including layered plastics 15 of a combination of materials). 16 (3) A rigid plastic bottle or rigid plastic container constructed with a layer of resin or 17 other plastic component made of material different from that constituting the 18 primary resin may be labeled with the code for the primary resin constituting the 19 bottle or container if the manufacturer of the container or bottle provides 20 documentation satisfactory to the cabinet that the manufacturer has successfully 21 demonstrated and has received a letter from the Association of Postconsumer 22 Plastic Recyclers (APR) confirming that the bottle meets or exceeds the APR 23 Critical Guidance Document and APR General Guidance Document Bottle-to- 24 Bottle protocol. After receipt and review of satisfactory documentation, the cabinet 25 shall provide a letter of approval and designation of the resin code that may be used. 26 (4) Beginning July 1, 2030, no retail business establishment shall provide a retail 27 customer with a plastic bag intended to carry away goods at the point of sale. This Page 2 of 3 XXXX 2/3/2025 9:48 AM Jacketed UNOFFICIAL COPY 25 RS BR 1396 1 provision shall not apply to produce bags or product bags obtained by the 2 customer prior to the point of sale that: 3 (a) Do not have handles; and 4 (b) Are used to enclose and prevent produce, meats, or other food products 5 from coming in contact with each other during conveyance to checkout. 6 (5) Beginning July 1, 2028, no retail business establishment that sells food or 7 beverages at retail shall: 8 (a) Provide a customer with a plastic beverage straw, except upon the 9 customer's express request; or 10 (b) Serve food or beverages in containers made from polystyrene foam or 11 Styrofoam. 12 (6) A person shall not knowingly release or launch into the atmosphere more than 13 twenty-five (25) plastic balloons filled with a gas that is lighter than air during a 14 twenty-four (24) hour period. This subsection does not apply to: 15 (a) Balloons released indoors; 16 (b) Balloons released for scientific or meteorological purposes; or 17 (c) Hot air balloons that are recovered after launching. 18 (7) Any person or owner of a retail business establishment that violates subsection 19 (4), (5), or (6) of this section shall be subject to a civil penalty of one hundred 20 dollars ($100) per day for the first and each subsequent offenses. Page 3 of 3 XXXX 2/3/2025 9:48 AM Jacketed introduced this year to phase out single-use packaging. The bill includes a ban on polystyrene containers for food and beverages by 2028. 
How are these polystyrene bills progressing?

Bans are the most popular packaging policy with more than nine states seeing at least one bill banning polystyrene introduced in 2025. Bans can be difficult to pass, but have been successful in states like New Jersey (more on that below), Delaware, Oregon, Rhode Island, and Washington.

3. Vermont Legislation Seeks to Prohibit Plastic Produce Stickers

What’s in Vermont’s House Bill 478?

You know those stickers on everything from apples and onions to avocados? They’re called price look-up stickers, or “produce stickers,” and Vermont introduced a bill in 2025 that sought to make sure those stickers are compostable.

What would producers be required to do?

While these stickers are often made of plastic, Vermont’s HB 478 would require the stickers to not be made of plastic and instead be compostable. Compostable is defined in this bill as being made of a natural fiber or meeting industrial compost quality standards, and using a food grade adhesive for attachment to the produce.

Why does this bill matter?

Produce stickers are one of the most common contaminants in composting streams. Since 2016, Vermont has prohibited organic waste from being sent to landfills, so items like food scraps, coffee grounds, and leaves are required to be composted in the state.

Vermont’s HB 478 marks one of the clearest statewide attempts to reduce contamination in composting streams from PLU stickers.

Where can I learn more? 

You can read the full bill text here or learn more about the problems posed by produce stickers here.

4. New Jersey Legislator Tries to Repeal Single-use Bag, Straw, and Polystyrene Ban

What’s the scope of New Jersey’s single-use bans? 

In New Jersey, SB 4238 would repeal the state’s ban on several single-use items. The state’s current ban prohibits the sale of single-use plastic carryout bags, polystyrene foam food service products, and plastic straws.  Single-use plastic straws are required to be distributed only by request, also known as a “skip the stuff” stipulation.

The current ban includes exemptions and extensions for items like meat and fish trays for raw or butchered meat as well as Ramen noodles prepackaged in polystyrene cups, which are exempt until May 4, 2026.

What would this bill look like in action?

This repeal would reverse the ban on single-use plastic bags, polystyrene containers, and plastic straws. The bill’s sponsor is arguing that “plastic bag bans have been associated with increased purchasing of alternative bags and containers and a resultant increase in manufacturing-related pollution.” They argue that a repeal of the ban would lessen these negative environmental impacts.

The bill would also remove $500,000 in appropriations for a public education and outreach campaign on reusable bags.

Has this bill gained momentum?

Historically, bans are difficult to pass — and once they’re passed, they’re often difficult to repeal.

“While I’ve never heard of a legislature  overturning a statewide ban on single-use packaging formats, many states have successfully passed preemption laws that prevent bans by setting a legal precedent,” said SPC Senior Manager Lucy Pierce. “While these ‘bans on bans’ are popular, we still continue to see bills introduced year after year that ban single-use plastic items, and don’t see the momentum to ban single-use plastic loosening up anytime soon.”

Where can I learn more about New Jersey’s single-use bans and the attempt to repeal them? 

Learn more about the state’s existing exemptions and extensions here, or check out the full text for the repeal bill here.

Source: Insights on these bills are derived from Industry Intelligence’s Legislation Monitor. For more information on this source, visit this page.

March packaging policy roundup

1. Minnesota Senators Seek to Remove Paper Products from State EPR Law

What is the Minnesota bill to remove all paper products from the state’s EPR? 

The bill, Senate File 2619, would revise the state’s existing Extended Producer Responsibility (EPR) law, removing all paper products — magazines, catalogs, and other paper products — from the EPR program’s list of covered products.

In the statute, paper products are defined as, “product made primarily from wood pulp or other cellulosic fibers but does not include bound books or products that recycling or composting facilities will not accept because of the unsafe or unsanitary nature of the paper product. Paper product does not include exempt materials.”

How does Minnesota’s EPR law treat paper now? 

Currently, paper and paper products are included in the statute for Minnesota’s EPR law like any other packaging material. There are, however, exemptions for things like bound books, paper that may become unsanitary in use (like paper towels), and paper products used for certain print magazines. In addition to paper exemptions, Minnesota’s current EPR law exempts the following entities from qualifying as regulated producers:

  • Paper mills that produce containerboard derived from 100% post-consumer recycled content and non-post-consumer recycled content
  • Any mill that uses any virgin wood fiber in the products it produces

You can learn more about the full scope of Minnesota’s existing EPR law here.

How would this bill change Minnesota’s EPR law?

If passed, this bill would make more paper products exempt from regulation under Minnesota’s EPR program. Filed on March 17, 2025, Senate File 2619 would exempt all paper products, such as magazines, catalogs, flyers, brochures, printer paper, and other types of paper. The future of this bill is yet to be determined, as it is in its first reading. In Minnesota  every bill will have a first, second, and third reading before a vote is taken.

What’s next for Minnesota’s EPR program? 

You can learn more about the bill to expand paper exemptions here, or read the full bill text here.

And as a reminder, covered producers need to register with the state’s chosen Producer Responsibility Organization (PRO) Circular Action Alliance by July 1, 2025 to be compliant with the Minnesota EPR law.

Source: Insights on this bill are  derived from Industry Intelligence’s Legislation Monitor. For more information on this source, visit this page

2. New Bill Introduces an EPR Program in Maryland

What’s the status of EPR in Maryland?

In 2023, Maryland passed an EPR bill that required a Needs Assessment and an Advisory Board before the state could move forward with an EPR program.

Now, the same State Senator who introduced the 2023 EPR bill has introduced SB 901, a bill that takes the next step toward the state’s implementation of an EPR program. The new SB 901 builds on the state’s Needs Assessment and amends the existing EPR bill to include a partial funding model.

What is a partial funding model under EPR? 

Partial funding models split the cost of EPR between the existing municipalities operating recycling and composting programs with the PRO. Producers will cover a partial amount of the net costs.

How would this bill affect Maryland’s EPR program?

This bill amends Maryland’s existing EPR bill to include a partial funding model similar to what we’ve seen in Minnesota’s EPR bill. Under the proposed Maryland funding model, the state’s chosen PRO would be responsible for the following costs by the deadlines below:

  • On or before July 1, 2028: The PRO would cover at least 50% of the cost per ton 
  • On or before July 1, 2029:  The PRO would cover at least 75% of the cost per ton 
  • On or before July 1, 2030, and each year thereafter: The PRO would cover at least 90% of the cost per ton 

The bill would also increase the de minimis producer threshold (the amount of revenue a producer would have to make to be subject to the regulations) from $1,000,000 to $2,000,000 earned global gross revenues.

Also, the new bill added a recycling definition, which does not include: “landfilling; combustion; incineration; energy generation; fuel production; or alternative daily cover or other forms of use or  disposal within the footprint of a landfill.”

What’s the status of Maryland’s EPR bills?

After adding amendments to the new bill, SB 901 bill has crossed chambers from the State Senate into the House, where it’s currently being reviewed for “First Reading Environment and Transportation and Economic Matters.”

If Maryland — a state with 6 million residents — moves this forward and implements their EPR law, approximately 19.1% of Americans would live in states with passed EPR for packaging and paper laws.

If you want to learn more about this policy and its implications, you can read about it here.

3. Washington Packaging and Paper EPR Bill Clears Senate, Awaits Hurdles in State House

What’s the latest on Washington’s EPR legislation?

Right now, Washington State has a few complementary EPR bills in play. Most relevant for packaging are the companion bills: the Packaging and Paper Products EPR bill (SB 5284) and the Recycling Reform Act (HB1150).

This month, the Packaging and Paper Products EPR bill advanced through the Senate Chamber. Now, it heads back to the state House with amendments. Then eventually, if passed, it will head to the Governor for signature.

What would Washington’s Packaging and Paper EPR bill do?

The state’s Packaging and Paper EPR bills would implement EPR programs similar to other states’, shifting the end-of-life cost of packaging and products onto producers.

The new Packaging and Paper EPR bill includes exemptions for bulk construction materials and forest products and agricultural products. It requires that multiple languages be included in education and outreach materials, and emphasizes that jurisdictional practices and needs be captured in the state’s Needs Assessment.

Additionally, the bill would prohibit using PRO fees to fund any lobbying or political activities.

What’s next for Washington’s EPR legislation?

The state’s Packaging and Paper EPR bill has passed out of the Senate Chamber. Now, it moves back to the state House where it faces stronger opposition. The companion Recycling Reform Act bill is awaiting action in the House, where it will likely see amendments from the senate version.

Legislators looking to pass EPR in the state have engaged in a comprehensive stakeholder engagement campaign and are optimistic about the passage of EPR in Washington this year. If they succeed, Washington will be the sixth U.S. and final West Coast state with EPR, and 19.3% of Americans would live in states with EPR laws.

Where can I learn more about the bill? 

Check out these three resources to learn more about EPR in Washington State:

4. Reminder: March 31 Oregon EPR Reporting Deadline

Producers in Oregon have a reporting deadline with the state’s PRO, Circular Action Alliance (CAA). Learn more about compliance steps here or visit CAA’s website to register and report today.

February packaging policy roundup

1. Nebraska Introduces EPR Bill that Includes Batteries, Packaging Data, and PCR

What is Nebraska’s new EPR bill? 

The Extended Producer Responsibility Data Collection Act, or LB 607, is a “Frankenstein bill” encompassing EPR for batteries, a Minimum Recycled Content Act, and other environmental provisions on air pollution, solid waste permitting, and grants for scrap tire projects among other sections.

What’s the status of Nebraska’s EPR bill?

Introduced on January 22, this bill has a long way to go before potential passage. According to the state Legislature’s website, with only a few exceptions, all bills introduced into the Nebraska Legislature must receive a public hearing by a committee. This bill will likely receive a hearing on February 27, 2025.

What would this policy look like in action?

If passed, obligated producers would be required to register with the department on an individual basis, or through a third party (likely a PRO) beginning on January 1, 2026. Then, starting on April 1, 2027, producers would be required to annually report information on covered products including material category and volumes sold into Nebraska.

If passed, the department would provide more information on the format of the reporting, and producers would need to submit an annual fee payment of $1,000 beginning on April 1, 2026.

More on Nebraska’s EPR legislation

While this bill is a patchwork of different initiatives, the packaging EPR section is particularly limited in scope. It isn’t written as a full EPR program and would only require some reporting and minimal funding.

It is unlikely that all sections of this bill will pass this year; however, experts predict that the bill will be divided up and edited before any real movement takes place. Even if the bill stalls, the state’s interest in packaging EPR and minimum recycled content requirements is noteworthy. To learn more, you can view the bill text here.

2. Tennessee’s Introduced epr bilL rolls into 2026

What is Tennessee’s EPR bill?

Tennessee’s packaging and paper products EPR bill, called the Tennessee Waste to Jobs Act, was introduced on January 23, 2025. The bill was the first of its kind to be introduced in Tennessee, and was focused on paper products and packaging.

What’s the status of Tennessee’s EPR Waste to Jobs Act?

On February 26, 2025, the bill was deferred to the Senate Government Operations Committee to 2026, meaning it won’t advance this year. After its introduction in January, the bill was referred to the state’s Senate Government Operations Committee, where more sponsors signed onto the legislation. Despite new sponsorship from two additional Democrats in the state, the bill would have likely needed further bipartisan support to advance.

What would this policy look like in action?

Tennessee’s Waste to Jobs Act would make producers responsible for establishing a nonprofit organization (called a Producer Responsibility Organization or PRO) to implement a producer responsibility plan. If the bill had passed, the PRO would then be responsible for applying to the state’s Department of Environment and Conservation by July 1, 2026 for approval. Next, the Department of Environment and Conservation Commissioner would appoint initial advisory board members by July 1, 2026. One non-voting member representing a PRO would have been on the advisory board.

More on Tennessee’s EPR bill. 

Despite most EPR laws having passed in “blue” states, Tennessee’s EPR bill was noteworthy for having been introduced in a largely “red” State Senate and having the most momentum among red states. You can learn more about the bill here.

3. CAA Submits Colorado EPR Program Plan 

What’s the latest on Colorado’s EPR rollout? 

Circular Action Alliance (CAA) is Colorado’s PRO tasked with rolling out the state’s EPR law. Now, after months of preparation, CAA submitted its Colorado EPR program plan proposal on February 3. The program plan comprises 200 pages covering everything from operational recycling services to estimated budgets.

What’s in the EPR plan for Colorado?

CAA’s program plan for Colorado covers:

  • Operational plans. The plan details the approach for:
    • Recycling services approach
    • Providing reimbursement to service providers
    • Covered material strategies and lists
    • Education and outreach
    • Compostable packaging
    • Responsible end markets
    • Reducing contamination
    • Post consumer recycled content
    • Reuse and refill
    • Expanding the system 
    • Budgets and compliance management
  • Estimated program budgets from a base to a high-case scenario. The total program budgets are estimated at:
    • Pre-program-2026: $215 – $267 million
    • 2027: $238.7 – $298.9million
    • 2028: $281.1 – $353.0 million
    • 2029: $297.7 – $380.8 million
    • 2030: $300.7 – $397.2 million

It’s important to note that the budget will be impacted by uncertainties like reimbursement costs for collection and processing, timing of investments, and eco-modulation of fees. Once reporting begins in July 2025 and the first program year is complete, the planned budget will be clarified.

What’s next for CAA’s Colorado EPR plan?

Now that the plan’s been submitted, the Colorado Department of Public Health and Environment (CDPHE) and the Colorado advisory board will review the plan and provide comments within 90 days. CAA will then have 60 days to revise the plan proposal. Public comment will take place at a date later determined by CDPHE and Colorado’s advisory board, but is anticipated to take place in the Fall of 2025.

Where can I learn more about Colorado’s EPR program plan?

Read the full plan and sign up for review meetings on CDPHE’s website or check out  CAA’s website for more information.

4. Update: Minnesota Chooses CAA as its PRO

After becoming the fifth U.S. state to pass packaging EPR legislation, Minnesota joins California, Oregon, and Colorado in using CAA as its PRO.

According to the Minnesota Pollution Control Agency, CAA will be tasked with implementing a statewide EPR program that encourages designing paper and packaging to reduce environmental and health impacts. The program also seeks to reduce the generation of waste through reduction, reuse and refill, recycling, and composting strategies.Learn more about the announcement here.

January packaging policy roundup

1. New EPR for Packaging and Paper Products Bill Introduced in Washington

What’s the latest on Washington’s EPR legislation?

The newest iteration of Washington’s EPR legislation, HB 1150 or the Recycling Reform Act, was introduced in the state legislature this month. The bill had its first hearing on January 21.

At the hearing, groups like the Association of Plastic Recyclers, AMERIPEN, The Recycling Partnership, Glass Packaging Institute, Surfrider Foundation, Can Manufacturers Institute, Coalition for High Performance Recycling, Biodegradable Products Institute, and Ridwell among others demonstrated support for the bill. Groups like WM, Waste Connections, Washington Refuse and Recycling Association, and other local Washington state haulers demonstrated opposition to the bill.

What’s different about this EPR attempt? 

Legislative stakeholder engagement — to the tune of more than 300 meetings — ahead of the bill’s filing has inspired optimism about the bill’s passage. If passed, Washington would become the sixth U.S, and final West Coast state to adopt EPR legislation.

What would this policy look like in action?

Washington’s EPR bill is similar to other states’ EPR laws, and would require producers to be registered with a Producer Responsibility Organization (PRO) by March 2029.

Where can I learn more about Washington’s EPR legislation?

Check out the bill text here and the latest hearing on the bill here.

2. Illinois Introduces Multiple Packaging Bills to Start 2025

What packaging bills were introduced in Illinois in 2025? 

As legislative sessions ramp up in the new year, legislators are lining up packaging bills. So far, three key packaging bills have been introduced in Illinois:

  • HB 1087 | Polystyrene in School Ban: The bill, which would amend the state’s School Code, proposes a ban in schools on polystyrene foam trays, bowls, plates, and other food serviceware items that would begin on January 1, 2027. Illinois schools have vendor contracts where they source these items, and this bill is written to dictate procurement practices for recyclable or compostable items instead of polystyrene foam. 
  • HB1146 | Single-use Carryout Bag Ban: This legislation, which would amend the state’s Solid Waste Planning and Recycling Act, would ban single-use carryout bags, and includes both plastic and paper. A few exemptions like bags for raw meat, produce, live animals, hot food, and dry cleaning garment bags are written into the bill. There are no reusable bag exemptions or loopholes in the legislation. 
  • SB0132 | Bottle Cap Attachment Rule: This bill would create the Plastic Bottle Cap Reduction Act. The legislation draws inspiration from the European Union and requires that single-use beverage containers (like bottles, jars, cartons, and others) made from plastic have caps attached or “tethered” to the container. It would also require monomaterial packaging across bottles and caps, prohibiting HDPE caps on a PET bottle, for example. If passed, the law would take effect on January 1, 2029 and restrict the sale of containers that don’t meet the “tethered” and monomaterial requirements. 
Where can I learn more about Illinois’ 2025 packaging policies? 

To learn more about these policies, read the bill text linked below:

Insights on these bills is derived from Industry Intelligence’s Legislation Monitor. For more information on this source, visit this page.

3. CAA Prepares Colorado EPR Plan

What’s CAA’s plan for Colorado’s EPR rollout?

Circular Action Alliance (CAA) is Colorado’s PRO tasked with rolling out the state’s EPR law. Now, CAA is preparing to share its drafted EPR program plan with  Colorado Department of Public Health and Environment (CDPHE) by February 1.

The PRO program plan will include a list of packaging accepted by all recyclers in Colorado. More detail will be shared once the plan is submitted.

What do producers need to do as part of Colorado’s EPR implementation? 

The deadline for producers to register with CAA was in October 2024. Producers who aren’t already registered are encouraged to register to avoid the penalties imposed on EPR “free riders,” which are becoming more frequent as we approach implementation.

What will this policy look like in action?

Under Colorado’s EPR law, monetary obligations for producers will begin in January 2026. In Colorado, producers start reporting August 31, 2025. That submitted data will encompass all of Q1 and Q2 in 2025; however, this could change and align with Oregon’s data from 2024, but no decision has been made yet.

Where can I learn more about Colorado’s EPR legislation?

To learn more about Colorado’s EPR law, check out CAA’s producer information or read this article on the law’s progress.

November packaging policy roundup

1. New EPR Bills in 2025 Heating Up

What states might have EPR bills on the table in 2025?

Michigan, New York, New Jersey, Tennessee, and Washington state all have drafted text for EPR bills circulating. As January 1, 2025 approaches, more states are preparing for the new year with draft language for this category of legislation.

What are key dates for these State Legislatures? 

In states where drafted text is circulating, here’s what’s next:

  • Michigan does not allow pre-filling, but a “lame-duck” session — the six-week period between Election Day and the start of the new legislative session — will provide more time. 
  • New York started accepting pre-filed bills on November 15th. 
  • The New Jersey State Legislature operates on a two-year term, which ends in January, 2026.
  • Tennessee’s Legislature will start a new session in 2025, and pre-filing can begin as soon as their election results are certified. 
  • Washington’s session allows pre file bills to be introduced December 2, 2024. 

What’s the history of EPR in these states?

In New York, New Jersey, and Washington, legislators have been working toward passing an EPR bill for a few years now.

Where can I keep up with these EPR developments?

Check out SPC’s EPR tool early next year for updates.

2. CAA Prepares Next Iteration of Producer Report in Oregon

What’s the latest on Oregon’s EPR legislation?

The two key players in this update are:

  • CAA: Circular Action Alliance is Oregon’s Producer Responsibility Organization (PRO), which is the organization that serves as a representative for producers and works with the government to roll out EPR legislation. 

Right now, as part of Oregon’s EPR implementation, CAA is in the process of outlining registered producers and submitting a program plan to the state’s DEQ. After reviewing CAA’s producer report from September (CAA’s second), Oregon’s DEQ rejected parts of the plan and has requested updates  by December 6.

What needs to change in Oregon’s producer report? 

DEQ complimented CAA on updates to the verification standard of responsible end markets and the recommended LCA focused take on eco-modulation; however, the agency noted a few areas for improvement including topics that required pending data. That data will be updated in the third version, but did not have an update in the second version.

What’s next for the state’s EPR roll out?

CAA is required to prepare its new producer report by December 6.

With a population of almost 4.5 million people (1.26% of U.S. population) and EPR beginning this July, Orgon will be the first U.S. state to implement EPR for packaging and paper products. CAA is also the chosen PRO for California and Colorado, which have later EPR start dates. CAA was also chosen to serve on the advisory board for Maryland, which has an EPR needs assessment that’s in progress.

Where can I learn more about Oregon’s EPR legislation?

To learn more about its rollout, you can visit CAA’s timeline, the DEQ’s responseDepartment of Environmental Quality Materials Management Program 700 NE Multnomah Street, Suite 600 Tina Kotek, Governor Portland, OR 97232 (503) 229-5696 FAX (503) 229-5675 TTY 711 November 8, 2024 Jeffrey Fieklow Chief Executive Officer Circular Action Alliance 20 F Street NW, Suite 700 Washington D.C., 20001 Dear Mr. Fieklow: Thank you for submitting Circular Action Alliance’s second draft producer responsibility program plan (Plan) to the Oregon Department of Environmental Quality on September 27, 2024, for the development and implementation of a producer responsibility program for packaging, printing and writing paper, and food serviceware in Oregon under Senate Bill 582 of 2021 (Act). Pursuant to the Act, as part of DEQ’s plan review process, DEQ offered a public comment period on the Plan and consulted with the Oregon Recycling System Advisory Council. The Recycling Council is an advisory committee created by the Act to advise DEQ and the producer responsibility organization(s) on implementation of the Act, including program plan review. The public comments received and a summary of the Recycling Council’s input on the Plan are available on DEQ’s website. This letter and its attachments comprise DEQ’s official response to the second draft plan pursuant to ORS 459A.878(1). DEQ finds that the second draft makes considerable progress, and particularly commends CAA for its thoughtful and novel work on a verification standard for responsible end markets, and on a life cycle assessment-based approach to ecomodulation. DEQ continues to be confident in CAA’s ability to ultimately produce a revised version of the Plan that meets all requirements and launch the program by July 1, 2025. After reviewing the Plan and considering input received through public comments and the Council, DEQ rejects the second draft proposed Plan. DEQ requests that CAA submit an updated version on December 6, 2024, or within the statutory maximum of 60 days allowed for making the revisions. DEQ’s rationale for rejecting the Plan, including recommendations for improving the Plan in subsequent drafts, is laid out in Appendix A. Additional supporting documentation is located in confidential Appendix B, which responds to Plan content that CAA claimed as confidential at the time of submission. DEQ reviewed and approved 18 sections of the Plan individually, as detailed in Appendix A and summarized below. Note that overall Plan approval is contingent upon DEQ’s approval of all sections. • Ten sections are approved or conditionally approved; those pertaining to: 1. program goals, 2. PRO description and qualifications, 3. depot collection targets, 4. proposed 1 additions to the USCL, 5. Specifically Identified Materials, 6. plastics recycling rate, 7. responsible end markets, 8. the materials management hierarchy, 9. education and outreach, and 10. material categorization for the producer fee schedule. Related to conditionally-approved sections, CAA may revise the content to align with DEQ’s approval conditions, and then the sections will be considered approved upon resubmission. Note that substantial changes to conditionally-approved sections that are not aligned with the DEQ conditions of approval would initiate another full review of those sections. • The other eight sections are not approved; those pertaining to 1. System expansion, 2. transportation reimbursements, 3. additional local government funding, 4. convenience standards, 5. performance standards, 6. financing, 7. equity, and 8. management and compliance. As expected, all eight of these sections either were not updated in Draft 2 or included substantial portions that were not updated. These sections are awaiting inputs from CAA’s system costing survey, the Oregon System Recycling Optimization Plan, completed in early October. CAA will revise the content of these sections in Draft 3, incorporating feedback from DEQ, the Recycling Council, and the public. As you know, ORS 459A.878 provides a PRO opportunities to submit up to three drafts in the review process. DEQ appreciates CAA’s continued work and looks forward to working together on this new and exciting program for extended producer responsibility in Oregon. Sincerely, Nicole Portley PRO Program Plan Lead Recycling Modernization Act Oregon DEQ Attachments Appendix A: DEQ recommendations on CAA program plan components Appendix B: Confidential DEQ recommendations on CAA’s Appendix G 2 Appendix A: DEQ recommendations on CAA program plan components There are 18 total components in the plan requiring approval for DEQ to approve the entire plan. Section approval decisions apply at the bolded, numbered, plan component level rather than at the subcomponent/subsection level. Approval and rationale/recommendation entries at the subcomponent level are for an informational purpose. Subcomponents listed with asterisks indicate subcomponents that are also considered in review/approval of the Equity section. Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Inclusion of an executive n/a Executive Summary, pg n/a The current structure and content of the executive summary. 5-12 summary is acceptable; DEQ recommends that CAA continue in its third draft to integrate updates into this section to reflect all substantial additions and edits made to the plan’s main body. 1. Overarching goals for the ORS Goals of the Program, Conditionally CAA has improved this section to better align with ORSAC recommended program plan that are as 459A.875( pg 13-17 goals of the statute and to enable improved the use of metrics to objective and measurable as 2) measurement of progress. track outcomes of the possible. ecomodulation bonuses Approval of this section is conditional upon: (specifically, the number of design • Goal 1, Objectives 1 & 2: The same outcome of changes incentivized reducing impacts through ecomodulation appears through the substantial for both Objective 1 and Objective 2, but is more impact reduction directly relevant to Objective 2. Delete it from bonus). Objective 1. • Goal 1, Objective 1: Add an outcome and ORSAC recommended metric(s) to fulfill the hierarchy requirement, i.e., that CAA develop ORS 459A.896(2)(b). meaningful metrics and o DEQ suggests the following outcome: measures for “Oregon-origin materials for which continuous environmental impacts can be maximally improvement related to reduced through choice of market or market equity within Oregon’s development actions flow to low- modernized recycling impact/high-benefit markets.” system, such as the o DEQ suggests the following metrics for this market share of outcome: “Number of materials identified for COBID-eligible which impacts of disposition pathways differ businesses . meaningfully from one another” and “Percent of these materials assessed for 3 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) compliance against and ultimately complying with the hierarchy disposition requirement.” • Goal 1, Objective 2: Edit the metrics wording so as to monitor the “quantity and type of impacts reduced through ecomodulated fee incentives” (as opposed to the number and type), and to additionally track the number of bonuses awarded and number and profile (e.g. large, small) of producers that have qualified for bonuses over time. • Objective 2, Part 1: Make the goal of meeting the convenience standards timebound by adding a deadline and interim milestones. • Objective 3: The metrics could use additional consideration to make them most meaningful; currently most of the metrics involve tracking the “numbers and kinds” of various offerings (e.g. recycling services and system expansions for underserved populations, education materials, communications channels, audiences reached, etc.). It would be more holistic to also include metrics focused on the size and scope of the investment in equity being made (e.g. proportion of contracts, and contract dollars, that go to COBID firms, absolute amount of contract dollars awarded to COBID firms, etc). 2. Prospective PRO • Application pg 1-2 Conditionally These sections remain conditionally approved, (Public comment was Description and Qualifications. • About Circular Action pending details on the Oregon Board slated for closed on this section in Alliance, pg 18-22 addition in Draft 3, as well as updates to the member Draft 2 review due to • Appendices B, C, and producer list and market share estimate. conditional approval of H-L, pg B9 – L76 Draft 1 content) Contact information for the ORS Application pg 1-2 Yes CAA provided its contact information in the prospective PRO. 459A.875( application form on page 1. 2)(b) A description of the structure ORS • Description of the Org, Conditionally (Draft 1 feedback still stands) Add more FPI and OWA-OWC- of the producer responsibility 459A.875( pg 14-15 details/commitments on pg 15 with respect to the WI made queries with organization, including the 2)(c) • Appendix C: CAA Org Oregon Board—i.e., replace “intends to establish” respect to Board management structure, the Structure, pg C15-18 with “will establish” or “has established,” and indicate membership. the Board membership or how it will be determined. 4 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) PRO’s board and roles and CAA indicated on pg 19 that details regarding the functions of committees. Oregon Board will be provided in Draft 3. The prospective PRO’s OAR 340- • CAA’s Qualifications to Yes CAA sufficiently addressed DEQ’s Draft 1 feedback qualifications (both to serve 090- Serve as a PRO in by adding a listing of seven Oregon-based hires made as a PRO in Oregon’s system 0680(1)(b Oregon, pg 18-19 thus far on pg 20 and by updating the organization overall and to carry out )(A) • Understanding of OR’s chart in Appendix C to depict these positions. particular interim RMA, pg 19-20 coordination tasks). • Team Expertise and Any other information ORS Capabilities, pg 20 required by the department to 459A.875( • Qualifications to determine that a producer 2)(q) Deliver Interim responsibility organization is Coordination Tasks pg capable of meeting its 21 obligations and ensuring the • Appendix C: CAA Org outcomes required under ORS Structure, pg C29-31. 459A.860 to 459A.975. The prospective PRO’s ORS • CAA’s Producer Conditionally DEQ appreciates the updates made to these sections in current producer membership 459A.875( Membership, pg 22 draft 2 and the continued progress reflected in (include here information on 2)(b) and • Appendix B, List of recruitment of member producers and capture of the likelihood of achieving the OAR 340- Member Producers and market share. 10% minimum market share 090- Market Share threshold to operate as a PRO 0680(1)(b Calculation, pg B9-28 DEQ asks that CAA again in Draft 3 update the in Oregon). )(C) producer list in Appendix B to reflect new members added in October-November and update the market Information regarding the OAR 340- • CAA’s Producer share calculation in Appendix B to represent the latest adequacy of the prospective 090- Membership, pg 22 estimate. PRO’s access to financial 0680(1)(b resources (i.e., to carry out )(B) assigned interim coordination tasks). 3. An Approach to Prioritize, ORS System Expansions and No This section was not updated in Draft 2, and as such (Public comment was Schedule and Fund Eligible 459A.875( Improvements, pg 25-32 DEQ’s recommendations from Draft 1 remain in closed on this section in Costs From the Needs 2)(a)(A) force. Draft 2 review because Assessment Pertaining to and (C), it was not updated) System Expansions and (2)(o)-(p); Those requirement-specific recommendations follow Improvements. OAR 340- below, with some additions marked in italicized text. ORRA asked for 090- service providers to be 0790(1); referenced alongside 5 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) and OAR In this and other sections pertaining to collection and local governments in 340-090- recycling of the USCL, DEQ recommends looking at multiple sections of the 0810(1)(a) all excerpts where “local governments” are plan. referenced and considering where appropriate to add “and their service providers.” A schedule for implementing OAR 340- • Proposed Timeline, pg No Specify in the timeline on pg 27-28 that all eligible ORSAC also indicated collection program 090- 27-28 costs will be funded by end of 2027. the need for estimated expansions and 0790(1)(a) • Initial Outline for reimbursements per improvements throughout the Disbursement of Local Add to either of Table 1 or Table 2 on pg 28-29 the local government to be state. Government System schedule and estimated system expansion added to the plan. Expansions, pg 28 disbursements for each local government. Also, clarify • Revised Local the timing of negotiations that will occur prior to Government Funding disbursements, in both the section regarding the Schedule, pg 28-29 service expansion and the section regarding approach • Start-Up Approach for to time-sensitive tasks. Ensure that the information Time-Sensitive Tasks, presented in both sections lines up with one another. pg 41-42. The proposed approach for OAR 340- • Revised Local No Expand Table 2 on pg 29 to show how each funding funding eligible costs 090- Government Funding request has been categorized by its priority. identified in the needs 0790(1)(b Schedule, pg 28-29 assessment in a way that ) • Assessing Priority of upholds the prioritization laid Funding Requests, pg out in rule, with funding 20 offered to local governments • Evaluation of Funding in higher tiers of priority Requests, pg 30 before it is offered to local • Proposed Review governments in lower tiers of Criteria, pg 30-31 priority. A description of how the use ORS • Proposed Review No CAA indicated on pg 30 “Support for Existing ORSAC also requested of existing infrastructure will 459A.875( Criteria, pg 30-31 Services and Infrastructure” as a review criterion for this detail be added. be maximized. 2)(a)(C) its follow-up needs assessment, the Oregon Recycling System Optimization Project (ORSOP). Summarize how CAA applied this criterion to develop a plan for system expansion that makes maximum use of existing infrastructure. Provide data on anticipated use of existing infrastructure across the state, draw out particular on-the-ground examples, or do both. 6 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) The estimated amount of OAR 340- • Initial Outline for No Update the amounts per year spent on system ORSAC feedback funding to be disbursed, 090- Disbursement of Local expansion in Table 1 on pg 28, replacing the ranges aligns with DEQ’s here. overall. 0790(1)(e) Government System with singular estimates. The estimated amount of and (2)(b) Expansions, pg 28 Integrate estimates of system expansion expenditure funding to be disbursed to • Revised Local per local government into this section. individual local governments. Government Funding Schedule, pg 28-29 A method for determining OAR 340- • Evaluation of Funding No On pg 31 CAA indicated that efficiency measures funding or reimbursement 090- Requests, pg 30 “may be developed for considering applications for amounts under ORS 0790(1)(d • Proposed Review funding.” That implies that CAA either intends to 459A.890(5) ) and Criteria, pg 30-31 offer additional (non-statutorily required) funding, or OAR 340- • Accountability intends to apply some screening criteria to its 090- Mechanisms, pg 32 statutorily-mandated funding requirements. Please 0810(1)(a) clarify and provide more detail. (A) A process, including the ORS • Dispute Settlement No The approach for dispute settlement described on pg process timeline, for how the 459A.875( Process relating to 31-32 involves CAA convening a multistakeholder producer responsibility 2)(e) Service Expansion working group that will confirm types of expenses organization will resolve any Funding Requests, pg eligible for compensation. Such a working group may disputes involving 31-32 serve a useful purpose, but statute requires the compensation of local program plan to lay out a clear pathway, including a governments and local timeline, for effective resolution of conflicts; the governments’ service working group proposal is insufficient to meet this providers under ORS requirement. 459A.890(5). A description of the process a OAR 340- • Accountability No Add a description of the proposed approach to ORSAC would like to local government, a local 090- Mechanisms, pg 32 invoicing and accountability, informed through the see sample invoice government service provider 0810(1)(a) ORSOP survey, to the next draft of the plan. forms included in a or other persons authorized (B) subsequent draft. by a local government to receive payment must follow to invoice the producer responsibility organization for reimbursement of costs or advanced funding. The information provided may include sample forms for reimbursement or advanced funding requests. 7 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) 4. Methods for calculating and OAR 340- • Transportation No This section was not updated in Draft 2, and as such (Public comment was reimbursing transportation 090-0780 Reimbursements, pg DEQ’s recommendations from Draft 1 remain in closed on this section in costs and 32-38 force. Draft 2 review because it was not updated) Those requirement-specific recommendations follow below. Methods for advance funding ORS • General Model, pg 33- No The proposed method entails, per pg 34, pre-approval Concerns about and reimbursements to local 459A.875( 34 of eligible shipments. This has the potential to slow potential inefficiencies governments, a local 2)(o) • Registration of down shipments and disrupt operations, unless CAA in pre-approval were government’s service Claimants, pg 34-35 can guarantee near-instantaneous review and approval voiced by ORRA in provider or other person • Timing of Submissions of requests. public comment and by authorized by the local and Reimbursements, Describe how the proposed approach will balance the ORSAC. government to receive pg 35 need for efficiency with the need for adequate transportation • Claims Submission oversight. reimbursements. Content, pg 35-36 • Timing of Payments, pg 36 A process, including the ORS • Dispute Settlement No CAA indicated on pg 36 that, in the case a CRPF ORRA sought more process timeline, for how the 459A.875( Process, pg 36 rejects a transported load due to contamination, the clarity on load producer responsibility 2)(e) transporter shall incur all costs associated with the rejection. organization will resolve any load, which will not be eligible for reimbursement disputes involving from CAA. compensation of local Provide additional detail here—for example, proposed governments and local standards for load rejection accepted across governments’ service participating CRPFs—to ease local government and providers under ORS service provider concerns with respect to financial 459A.890(2). liabilities due to the risk of load rejection. See comments above related to dispute resolution for system expansion requests – they are also applicable to dispute resolution for transportation reimbursement. Methods for calculating OAR 340- • General Model, pg 33- No CAA proposed to use standardized rates per ton per ORSAC recommended reimbursement amounts for 090- 34 mile for these reimbursements. DEQ has concerns weighing the proposed transportation costs in 0780(1) • Establishing Standard with this approach, which could penalize rural method (standardized accordance with established Rates, pg 35 communities, especially those distant from the major rates per ton per mile) requirements, including: • Voluntary trucking corridors (I-5 and I-84, Hwy 97). against a zoned Transportation Option, approach with pg 37 geographic 8 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) • Opportunities for Indicate how CAA will address possible rural inequity differentiation of Efficiency and related to transportation reimbursements. transportation costs Effectiveness, pg 37-38 an approach for enabling OAR 340- Establishing Standard ORRA and The intent to account for fluctuations in input costs in ORRA and ORSAC are fluctuations in input costs, 090- Rates, pg 35 ORSAC are the reimbursement rates is noted, but the approach to also seeking this detail. such as fuel, to 0780(1)(a) also seeking doing so is not described in detail. automatically factor into this detail. Provide the calculation methodology, including data the reimbursement sources, and the process/schedule for updating amounts over time; standard rates per mile. a voluntary option that OAR 340- Voluntary Transportation Yes CAA proposed to provide such an option on pg. 37. allows local governments 090- Option, pg 37 or service providers and a 0780(1)(b producer responsibility ) organization to agree to transfer some or all transportation responsibilities to the producer responsibility organization or coordinating body; a means of accounting for OAR 340- Proposed Method for No A general methodology is laid out in page 33-35 and proximity to an 090- Calculating it accounts for multiple factors (different loads appropriate commingled 0780(1)(c) Transportation Costs, pg including mixed loads, distances), but it is silent on recycling processing 33-37 how CAA will determine whether a closer facility facility or responsible end (that a community bypasses) has “capacity.” market that has capacity to Update this section to explain how facility capacity process or recycle the will be assessed. material and other factors that could affect transportation costs; a description of the OAR 340- Consultation Process, pg No CAA conducted preliminary consultations that mandatory consultations 090- 33 informed its approach, but planned to consult about with local governments 0780(1)(d detailed methods later as part of the ORSOP. and service providers that ) List Local Governments and Service Providers informed the development consulted across the state and describe the feedback of the methods; and received. a description of n/a Material Compaction, pg n/a The section entitled “Material Compaction” on pg 37- ORRA and ORSAC opportunities that were 37-38 38 addressed this issue; however, it did not clearly requested additional identified for increasing state what options for compaction will be clarity on this section. 9 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) efficiency and achieving allowed/disallowed or incentivized/disincentivized. full transport loads (e.g. an Enhance this section with these details. approach for balancing the environmental benefits of transportation efficiency with the environmental impacts of baling) 5. Approaches to Additional ORS Additional No This section was not updated in Draft 2, and as such (Public comment was Reimbursement and Funding 459A.875( Reimbursement and DEQ’s recommendations from draft 1 remain in force. closed on this section in for Local Governments 2)(o) Funding for Local Draft 2 review because Governments, pg 38-41 Those requirement-specific recommendations follow it was not updated) below. Methods for advance funding Contamination Reduction No Break this into two subsections, funding for and reimbursements to local Programming, pg 38-39 contamination evaluation (ORS 459A.890(3)) and governments, a local funding for contamination reduction programming government’s service (ORS 459A.890(4)). Also update the approaches provider or other person proposed to account for rulemaking 2 rules. authorized by the local government to receive funding for contamination reduction. A method for estimating and ORS Ensuring 10% Post- No Provide more detail here on the specific requirements Incentivizing or reimbursing the possible 459A.890( Consumer Content in Roll for local governments to make claims for payment to recommending LG use additional costs of local 6) Carts, pg 39-40 cover the possible price premium between 10%+ PCR of consistent colors was government compliance with content roll carts and virgin-material carts. recommended by ORS 459A.908 (the ORSAC and Metro. requirement that all roll carts Consider incentivizing local governments’ use of purchased after January 1, consistent container colors (blue for commingled 2026, must contain at least recycling, orange for glass, gray/black for glass, green 10% post-consumer recycled for compost). content). Any additional funding to ORS Measures to Protect No CAA’s proposal on page 41 to provide local local governments or other 459A.875( Ratepayers from governments with an annual summary of RMA measures for the purpose of 2)(k) Increased Costs, pg 40-41 funding in relation to materials collected in their protecting ratepayers from jurisdictions could enable local governments to increased costs. consider the funding when conducting ratepayer reviews. Some local governments have expressed interest in more frequent access to additional information from the PRO, such as monthly 10 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) transactional data for inbound loads of commingled recyclables received by the processing facilities. Update this section after consultation with local governments about CAA’s potential to provide them more detailed and frequent information. 6. Methods for achieving ORS • Proposed Approach to No These sections were not updated in Draft 2, and as (Public comment was convenience standards by 459A.875( Achieving such DEQ’s recommendations from draft 1 largely closed on these sections supporting and expanding 2)(a)(B), Convenience remain in force. Those recommendations follow in Draft 2 review existing collection points and 459A.896( Standards, pg 43-51 below, with some additions, mostly related to cross- because it was not by creating new collection 1), and • Appendix D, referenced content from the Equity section of the plan, updated) points, including: OAR 340- Stakeholder marked in italicized text. 090-0640 Engagement, pg D33- 34 DEQ recognizes that CAA’s proposal to fulfill the • Appendix F: PRO convenience standard is not yet fully-developed, Depot Lists and pending results of outreach to existing depots and Coverage, pg F40-48 other potential collaborators through ORSOP. While DEQ is amenable to finer details of this section awaiting CAA’s third draft submission, DEQ is concerned with the current proposal’s general directionality—i.e., CAA is pursuing approaches that may be insufficient to meet the convenience standards. In the next draft of the plan, please 1. ensure and communicate a holistic understanding of what is required by the convenience standards, and 2. describe how any proposal for alternative compliance would meet existing and proposed criteria in rule language at OAR 340-090-0640(6). In its third draft of the plan, CAA should reflect the results of its broad outreach through ORSOP, including partnerships that can collectively deliver a program that meets the standards. The updated draft should also reflect comprehensive research of Oregon facilities that may meet the definition of “existing depot,” which can be demonstrated through an updated existing depot list in Appendix F. 11 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) (With respect to ensuring and communicating an understanding of the requirements) Amend areas of the plan where the convenience standard is mis- or underrepresented, such as: • The infographic and bulleted list on pg 44 is not entirely aligned with OAR 340-090-0640. The convenience standard requires collection points for materials on the “enhanced” list in cities with populations of 4,000 (outside the Metro region) and 8,000 (within the Metro region). It requires an additional collection point for every additional 40,000 residents. And additional collection points are based on population and location of the city and county. • On pg 45 CAA suggests that by offering collection of basic materials at existing depots, it is going beyond the convenience standards. That is not the case – the requirement to contract with existing depots where possible to collect all PRO materials must be met; doing so is not going beyond requirements. See further recommendations on nested requirements below with respect to application of the “existing depot” definition, development of collaborations, and alternative compliance. a description of how the ORS Network Analysis and No CAA noted on pg 45 that, as a part of the ORSOP ORRA sought clarity prospective PRO will uphold 459.875(2 Mapping, pg 45-46 work in Apr-Aug 2024, “permitted DEQ facilities and on how existing depots the requirement to contract, )(a)(B) existing local government depots will receive no less are being identified. where possible, with existing and ORS than two specific and direct requests to consider depots or drop-off centers; 459A.896 joining the PRO depot network.” (1)(a) DEQ appreciates CAA’s intent to reach to all existing facilities, including tribal facilities (as noted on pg 160), as part of ORSOP, and considers that general approach to be sound. However, note that there are no “DEQ-operated facilities.” Also, the definition of “existing recycling depot” at OAR 340-090- 0640(1)(a) is broader than facilities permitted by DEQ 12 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) and existing local government depots, and encompasses some “refuse-related locations” that CAA refers to on pg 45 as possible partners to meet convenience standard gaps after all “existing depots” are contracted with. Include all facilities meeting the “existing depot” definition in the gap analysis. Confirm that CAA will follow OAR 340-090- 0640(1)(a) and reach out to all existing recycling depots as defined in rule. Consider adding a bulleted list in the plan’s main body representing a diversity of locations that meet the definition of “existing depot.” Also, provide a comprehensive list of existing depots in an updated Appendix F and indicate which facilities voiced interest in collecting PRO materials, as well as those that have declined to partner. Inclusion of a list of existing ORS Appendix F: PRO Depot No Appendix F is difficult to follow. It could be GPI sought more depots, with indication of 459.875(2 Lists and Coverage, pg improved by: information on the those that are possible and )(a)(B) F40-48 • Confirming that Tab 1 consists of sites that meet depot system and not possible to contract with; and ORS the “existing depot” definition in rule at OAR proposed locations. 459A.896 340-090-0640(1), and distinguishing those that (1)(a) are possible to contract with from those that are ORSAC recommended not. updating Appendix F to • Moving events out of Tab 1; they could appear in show which depots a separate Tab. have agreed to • Summarizing results of Tab 1 by city and county collaborate. (number of existing depots that are possible to contract with in each city and county). • Including the summarized results of Tab 1 into the relevant rows of Tabs 2 and 3 (i.e., the numbers of existing depots per county and city), so that the reader sees multi-material collection points required and existing depots in a jurisdiction side by side. Consider highlighting the rows where the required number of multi- material collection points exceeds the quantity of 13 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) existing depots. Consider deleting the “Meets Base” and “Meets Enhanced” columns. • Clarifying what is represented in the column “Population Covered by Existing Sites” and considering applying this column differently so that it is responding to a specific requirement of the convenience standard (for example, the requirement that 95% of Oregon residents live within 15 miles of a collection point for each material). • Adding a Tab 4 where the plan for addressing those cities and counties that cannot meet the convenience standard through existing depots alone are given further treatment. It should be clear from this table, how CAA is proposing to meet the convenience standard in each of these jurisdictions (i.e., establishment of new depots, return-to-retail for specific materials, collection events or on-route collection to stand in for a certain number of required collection points, etc). Inclusion of tribal depots ORS • Equity in the Conditionally DEQ supports CAA’s identification of two existing among the list of “existing 459A.875( Establishment of a PRO depots operated by Tribal nations and efforts to depots” and pursuit of 2)(a)(B) Depot Network, pg 160 contract with those depots for collection of PRO efforts to contract with and OAR • Appendix F: PRO Recycling Acceptance list materials. those depots.* 340-090- Depot Lists and In Draft 3 DEQ will look out for an update in terms of 0640(1)(a) Coverage, pg F40-48 whether or not such contracting is on track to go (C) ahead, and whether or not any other depots operated by Tribal nations have been identified. identification of key n/a (unless • CAA’s Proposed No or n/a DEQ acknowledges modest progress between drafts 1 ORSAC recommended collaborators that the an entity Approach to Equity, pg and 2 in terms of CAA having consulted with including a specific and prospective PRO plans to meets the 159-160 additional CBOs regarding potential to collaborate consolidated list of contract with, including “existing • Equity in the on collection of the PRO Recycling Acceptance List subcontractors in the community-based depot” Establishment of a PRO (the Arc, Ground Score, and St. Vincent de Paul have plan that specifically organizations and definition Depot Network, pg 160 been added to the consultation list in Appendix D). community-based and minority-owned/operated at 340- • Appendix D, In Draft 3 DEQ will look for the following update: COBID-eligible businesses;* 090- Stakeholder organizations. • Have any CBOs been identified that operate 0640(1)(a) Engagement, pg D33-34 facilities that meet the definition of “existing ) 14 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) a description of how the n/a • Equity in the n/a depot?” If so, have they been offered the prospective PRO will Establishment of a PRO opportunity to contract, and is partnership moving engage with local Depot Network, pg 160 ahead?; and community-based • Unnamed section, pg • Beyond the requirement to contract with existing organizations and women 50-51 (was not updated depots if possible, has CAA secured any other and minority-owned in Draft 2) partnerships with CBOs in order to fulfill the businesses to develop requirement to meet collection targets, collection points;* convenience standards and performance standards in collecting PRO-list materials? While DEQ supports CAA’s intent to go beyond the requirement to contract where possible with existing depots and partner with CBOs that may not qualify as ‘existing depots” (as noted on pg 160, where CAA wrote, “CAA will explore partnerships with community groups that collect PRO depot materials but may not qualify for permits or meet the definition of “depot” or “drop off center””), DEQ will need to be able to assess, in Draft 3, whether or not the base requirement with respect to existing depots has been met. Therefore, DEQ recommends that, in Draft 3, CAA speak to each of the two above bullets separately (#1 pertains to a requirement, #2 pertains to a guidance element). plans for providing enhanced OAR 340- Underserved Populations, No CAA noted they will explore the potential of City of Portland convenience to underserved 090- pg 51 enhanced curbside/valet collection for residents that recommended clearly populations;* 0640(2)(h might not be able to access depot points. defining “valet ) This is lacking detail, in that it describes options that services.” CAA “could” undertake without committing CAA to ORSAC’s feedback actually implement any. aligned to DEQ’s. Describe updated, firmer plans to provide enhanced convenience to underserved populations. descriptions of any OAR 340- • Closing Gaps to Meet No CAA signaled on page 46-47 the intent to request To contextualize alternative collection 090- Convenience Standards, alternative compliance (use of on-route collection alternative compliance programs being proposed to 0640(6) pg 46-47 and/or collection events) in some locations “where proposals within substitute for convenience • Running Collection barriers exist in establishing depots.” In Appendix F longer-term vision, City standards, including: Events, pg 48, and on pg F44-48, counties relevant to the prospective of Portland request are indicated with the symbols “@” and “©." recommended 15 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) • Requesting Variances, discussing timelines for pg 48 For DEQ to approve such a request, CAA would need moving PRO materials to enhance this proposal to clarify the specific to the USCL. request(s) and provide the necessary supporting information per proposed rule OAR 340-090- ORSAC recommended 0640(6)(c)(A)-(D). DEQ would like to further note adding analysis of the that it considers these criteria fairly difficult to meet alternative compliance for a collection-event based approach, which would proposal against the be better suited as a bridge to a fixed location criteria in rule 340-090- approach, not a permanent strategy. 0670(c)(A)-(D). ORSAC also expressed Alternative compliance proposals should also be concerns regarding an situated within the broader context of program goals, exclusively on-route with consideration of longer-term vision for each approach not material. maximizing current infrastructure and not serving houseless and other currently underserved community sectors. an assessment of the OAR 340- No Analysis of how the alternative compliance approach impact on the achievement 090- impacts collection rates is not provided. of collection targets; 0640(6)(c) Such an assessment would be particularly important (A) for alternative compliance proposals that would substitute mobile collection events for fixed locations, or for a proximity exemption variance that would result in a lower quantity of fixed locations. an assessment of the OAR 340- No On pg 47 CAA noted that on-route collection service Metro and City of impact on equitable access 090- for PRO materials would be provided at no cost to Portland sought info on to and provision of 0640(6)(c) single family and multifamily properties, suggesting accessibility for recycling across regions (B) equitable access for these generators under an multifamily and and diverse populations;* alternative compliance approach using on-route commercial generators. service. However, CAA did not address access for ORSAC felt that commercial generators or logistical and space information on challenges of offering curbside collection for source- accessibility for segregated materials at multifamily sites. commercial generators Equitable access for all three of these user groups is was lacking. equally important for an alternative compliance proposal that would involve collection events. How would a collection event meet the needs of a 16 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) commercial generator with considerable quantities of EPS, for example? Describe how an alternative compliance proposal would impact equitable opportunities to provide and access services, i.e., the economic opportunities offered to different prospective partners under a fixed location-based vs an alternative compliance approach. demonstrated support of OAR 340- No This is not included in the plan, but is a gap DEQ relevant local 090- would expect to see filled after the ORSOP work is government(s) for the 0640(6)(c) conducted. proposal and a description (C) of how prior consultation with affected local government(s) was taken into account in planning; and an assessment of OAR 340- No Updated proposed rule language requires an environmental outcomes. 090- alternative compliance proposal to assess 0640(6)(c) environmental outcomes of an alternative compliance (D) proposal. Add relevant language to address the suitability of different PRO materials for commingling (if proposed) and for various modes of collection (on- route, event collection, etc) if proposed. (for mobile collection OAR 340- No This was not included in the plan, but is a gap DEQ events being proposed as 090- would expect to see filled after the ORSOP work is an alternative program) 0640(6)(b conducted. the planned frequency of ) these events and how the proposed schedule will provide adequate predictability for the public. (for mobile collection OAR 340- No This was not included in the plan, but is a gap DEQ events being proposed as 090- would expect to see filled after the ORSOP work is an alternative program) 0640(6)(b conducted. the plan for sufficiently ) advertising the events 17 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) (for mobile collection n/a n/a This was not included in the plan, but updated content events being proposed as could be provided in a subsequent draft. an alternative program) how the planned events will uphold best practices for mobile collection events: for example, through pre-event outreach coordinated with relevant local governments, community- based organizations, and service providers; policies and processes to ensure adequate staffing, management of traffic flow, and safety; and contingency plans for responding to larger-than- expected turnout An accompanying OAR 340- No On page 48, CAA noted that, in the event a suitable justification if requesting 090- location cannot be identified for a permanent temporary variance from 0640(7) collection location or collection event, CAA will convenience standards. request a proximity exemption variance, with the distance being a “reasonable” 15 miles from the established depot serving as the basis of the proximity exemption to the jurisdiction where the PRO depot location/collection service is lacking. Except in some rural cases, DEQ is reluctant to consider 15 miles a convenient distance to travel for a depot. For example, in the metro area, if CAA were to establish a collection point at the Metro Central Transfer Station, under this proposal no additional collection points would be required as far away as Parkrose, Lake Oswego, or Beaverton. DEQ does not anticipate granting such a variance for urban areas. 18 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) DEQ may consider approving 15-mile proximity exemption on a case-by-case basis for certain rural areas with demonstrated local government support. Outlining a plan for depot Start-Up Approach for No On pg 60 CAA noted that the first-phase PRO development that will succeed Establishing the Depot collection points will be open by June 30, 2025, and in meeting collection, Collection System, pg 58- additional sites will be onboarded “over the course of convenience and performance 60 the program plan.” This leaves ambiguity regarding standards by the end of the how many sites would be established prior to first program plan period. December of 2027. Expand the detail and scope of this section. For example, include a schedule for both start-up and the program plan period itself, and include interim benchmarks toward meeting the convenience standard. Confirm that the convenience standard will be met by the end of the first program plan period. Outlining a plan for depot Start-Up Approach for n/a Metro would like to see the strategy for continued Metro would like to see development start-up Establishing the Depot collection of items moving off of local government the strategy for activities that collection points Collection System, pg 58- collection lists. continued collection of have been opened provides 60 items moving off of continued opportunity to local government recycle in metro areas where collection lists. items formerly on local government recycling acceptance lists have moved to the PRO recycling acceptance list. 7. Methods for achievement of OAR 340- Proposed Approach to No This section was not updated in Draft 2, and as such (Public comment was performance standards, 090-0650 Addressing DEQ’s recommendations from Draft 1 remain in closed on this section in including Performance Standards, force. Those recommendations follow below. Draft 2 review because pg 51-58 it was not updated) a description of how the PRO OAR 340- • Annual Audits, pg 53 No This requirement was partially addressed through the ORRA considered that will monitor sites and 090- • Audit Criteria, pg 53- proposed approach to site auditing on pg 53, but not sites should receive an services on a regular basis to 0650(1)(a) 54 fully. A mix of on-site and desktop audits is proposed, annual on-site visit. ensure compliance but the plan did not provide any sense of how much of each type will occur. DEQ considers that most, if not ORSAC recommended all, sites should receive an on-site visit as part of the onsite visits with a mid- initial year of auditing. year check-in or desk audit. 19 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Consider auditing more frequently than once a year and adding additional components to the auditing process. plans for education and OAR 340- Promotion of the PRO Conditionally This requirement was addressed under the “Promotion outreach regarding the PRO 090- Depot Network, pg 57-58 of the PRO Depot Network” section (pages 57-58), as Recycling Acceptance List in 0650(1)(c) well as the “Education and Outreach” section a manner that is clear, beginning on page 117, which includes descriptions of culturally relevant, promotion on CAA’s website, customizable collateral accessible, and made available to LGs (via a portal), best messaging understandable to diverse approaches, etc. audiences, including through its website The approach to education was well-described, except for one component: include a specific approach to educate commercial generators. protocols for minimizing the OAR 340- Contamination Conditionally On pg 54 the approach to addressing contamination contamination of materials 090- Management, pg 54 broadly fulfills the requirement in rule; however, delivered to collection points, 0650(1)(e) include more detail on “initial sorting,” as it has including screening and then permitting implications – where will the sorting occur, accepting and managing the how will it be done, etc. contamination appropriately, rejecting the contamination, or both, and must also include providing service users with information on proper recycling or disposal options for non-accepted materials. Information on how OAR 340- Block White EPS Foam No CAA noted on page 54 that they intend to work with expanded polystyrene will be 090- Management, pg 54 specific PRO depot locations or partners to house densified before 0650(3)(a) non-thermal foam densifiers for consolidating foam transportation of more than (B) from surrounding communities. CAA is exploring 75 miles, including indication placing densifiers and exploring mobile densification of the proposed method(s) to near Grants Pass, Klamath Falls, Burns, Redmond, be used and Ontario, The Dalles and Pendleton. consideration of impacts on yield 20 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) consideration of impacts Add more detail about this proposal and demonstrate on transport quantities consideration of impacts on yield, transport quantities, (density) and worker safety and exposure. assessment of potential safety and exposure impacts to workers Information on how OAR 340- Pressurized Containers No On pg 55-56 CAA noted they will work with DEQ- Metro sought edits to convenience and 090-0640 and Aerosols, pg 54-56 permitted facilities that offer HHW collections, as Table 4 on pg 56 in performance standards for and well as reach out to contractors that currently host order to portray the aerosols and pressurized OAR 340- HHW collection events to explore collaboration state’s HHW containers will be met. 090- opportunities. infrastructure (and, 0650(3)(b particularly, its gaps) ) DEQ cautions that a collection approach for these more accurately. materials that is limited to existing infrastructure would fail to meet the convenience standard. The plan ORRA recommended noted that 94.6% of the Oregon population has access partnership with to some form of HHW collection; however, that PaintCare for collection access is very limited, temporally and geographically, of aerosols. for most of those residents, and the access for commercial generators is much more limited than that ORRA sought clarity for residential generators. on who would haul pressurized cylinders Note that, contrary to the paragraph at the bottom of and aerosols. pg 54 beginning with “CAA recognizes,” it is possible to collect this material at PRO- and retailer-operated collection points; rulemaking 1 rules do not require the material to be handled through HHW infrastructure only. Explore return-to-retail options for these materials and revise the next draft with details of retailer partnerships achieved. CAA could also explore partnership with PaintCare for collection of aerosols. Include in a subsequent draft a checklist and screening procedures for collection points that will receive these materials, and information on arrangements made for the hauling and processing of these materials. 21 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Other aspects of the plan to set n/a • Establishment of Depot n/a up a network of collection points Sites and Contracts, pg for PRO Recycling Acceptance 52-53 list materials, including: • Compensation, pg 57 • Reuse, pg 57 Principles and methods for n/a • Establishment of Depot n/a DEQ welcomes CAA’s plan, described on pg 160, to ORRA also sought compensation of collection Sites and Contracts, pg build a living wage for CBO-managed collection more clarity on the point staff;* and 52-53 points into the base service fee CAA will pay monthly living wage • Equity in the to the CBOs. commitment – why Establishment of a PRO only for CBOs and how Depot Network, pg 160 CAA could add some detail in the third draft would it meet legal regarding how it will determine a living wage. requirements? Any plans for n/a Reuse, pg 57 n/a On pg 57 CAA noted interest in working with GPI recommended accommodating collection of member producers to collect reusable packaging at incorporating a focus reusable packaging within depot locations, but does not make a concrete on glass into the reuse depots and collection points; proposal. DEQ welcomes more detail. For example, section. does CAA envision separating out reusable from single-use pressurized cylinders and transporting them back to the manufacturer for reuse, something envisioned in the performance standard rules? How would CAA handle reusable wine bottles returned to its depots? 8. Proposed collection target OAR 340- Proposed Depot Conditionally This section was not updated in Draft 2, and as such (Public comment was and sufficient justification for: 090- Collection Targets, pg DEQ’s recommendations from Draft 1 remain in closed on this section in 0660(2)(b 60-65 force. Those recommendations follow below: Draft 2 review because ) it was not updated) The per-material collection rates of 5.9-15% per material laid out in Table 5 on pg 61 are premised upon an assumption, on pg 50, that 15% of the Oregon population will participate in depot and related services. Reconsider this number as it may be a low estimate; recently in Tacoma and Medford, glass depots have collected >75% of the volume expected from on-route collection, suggesting higher rates of participation are possible. A higher estimate of participation would help CAA to meet the statewide plastics recycling goal. 22 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) If CAA views 15% a realistic participation goal, other means of meeting the plastics recycling goal will need to be pursued. steel and aluminum aerosol Steel and Aluminum Conditionally See entry above regarding the plan for meeting the packaging Aerosols, pg 61-62 convenience and performance standards for aerosols. If the 11.6% target collection rate is premised on using existing HHW infrastructure only for collection, it may be low, and should be revised to account for additional collection through return-to-retail (if successfully incorporated into the collection point network). polyethylene film packaging Polyethylene Film Conditionally See note above regarding low targets, of particular Packaging, pg 62-63 concern with the plastic items since DEQ has flagged that CAA’s estimate of the plastic recycling rate is likely too high and that a plan is needed for additional programming during the first program plan to achieve the 25% statewide plastics recycling goal for 2028. single-use pressurized Single-use Pressurized Conditionally The concerns expressed above regarding management cylinders Cylinders, pg 62 of aerosol packaging exclusively through existing HHW infrastructure apply to pressurized cylinders as well. aluminum foil and pressed Aluminum Foil and Conditionally CAA’s estimate presumes 6,300 total tons of material foil products Pressed Foil Products, pg in the state, which is referred to as an estimate of 63 residential material generated in 2023. Clarify whether or not this estimate accounted for commercial/multifamily generation. block white expanded Block White Expanded Conditionally See concerns about low rates for plastic collection polystyrene Polystyrene, pg 63-64 indicated above with respect to PE film, also relevant here. polyethylene and PE and PP Lids and Caps Conditionally polypropylene lids and and HDPE Package HDPE package handles Handles, pg 64 Plastic buckets, pails and Plastic Buckets, Pails and Conditionally storage containers Storage Containers, pg 64 Glass n/a Glass, pg 65 n/a CAA proposed a collection rate of 53% (the threshold GPI considered the rate of 45% is set in rule under OAR 340-90- 3,100 additional ton 0660(2)(a)), premised upon collecting an additional recovery target low. 3,100 tons of material beyond what is already 23 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) collected by local governments (38,000 tons), for a total of 41,100 tons collected. DEQ seeks more detail about the 3,100 ton estimate. See reference to Tacoma and Medford >75% glass collection rates above, suggesting that 53% could be low. 9. Any proposal to add a new ORS Proposed Additions to Conditionally DEQ conditionally approves the addition of ORSAC recommended covered product to the 459A.914( the USCL, pg 67-68 transparent blue and green PET bottles to the Uniform that CAA clarify the Uniform Statewide Collection 4)(b) Proposed Future Statewide Collection List, effective July 1, 2025. This timing and details of List of materials with the OAR 340- Additions to the USCL recommendation will be updated to full approval upon plans to onramp following supporting 090- Through Forthcoming submission of a third draft plan that addresses all materials by plan information: 0630(4)(g Program Plan conditions of approval regarding plan content on pg amendment. ) Amendments, pg 69-73 67-68 (see list below). DEQ appreciates advance notice of CAA’s intent to add other materials to the USCL during the program plan period via program plan amendment. DEQ’s approval of these sections is conditional upon the following edits: 1) clarifying how CRPF sorting equipment needs for green and blue transparent PET bottles are being addressed, and 2) addressing the criterion “Environmental factors from a life cycle perspective” for green and blue transparent PET bottles in Table 6 on pg 68. DEQ also recommends clarifying, on pg 73, the full list of materials that CAA intends to onramp during this program plan period, and the intended timing for the onramping process. CAA may also make improvements/updates to the section regarding PET thermoforms to the extent that it is ready to do so, or may rather wait to address DEQ’s suggestions in the plan amendment to be submitted later in 2025. 24 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) More information on all recommended edits follows below. Transparent Blue and Green PET Bottles, Full Proposal (pg 67-68): A detailed analysis of how OAR 340- Performance against ORS Conditionally CAA provided additional information in Draft 2 in ORRA supports the proposed covered product 090- Criteria, pg 60-61 order to, conditionally, satisfy the statutory criteria for addition of transparent performs against the criteria 0630(4)(g adding the material to the Uniform Statewide blue and green PET in ORS 459A.914(3); ) Collection List; as such, DEQ conditionally approves bottles to the USCL. the addition of transparent blue and green PET bottles to the USCL from July 1, 2025, onward. The stability and maturity Yes Plan content is acceptable. of responsible end markets; The accessibility of Yes CAA has confirmed there are accessible markets for responsible end markets the material. The viability of Yes CAA has clarified that optical sorting equipment at responsible end markets CRPFs will enable successful capture and sorting of the material, generating bales that mix transparent blue and green PET together with clear PET, bales for which there is existing demand from stable, viable end markets. Environmental health and Yes Plan content is acceptable. safety considerations; The anticipated yield loss Yes CAA has clarified that optical sorting equipment at for the material during the CRPFs will enable successful capture and sorting of recycling process; the material, and has provided detail on how the material is managed at end markets. The material’s Yes Plan content is acceptable; no problems with sorting compatibility with existing are expected on the basis of existing collection and recycling infrastructure; sorting. The amount of the Yes Plan content is acceptable. material available; The practicalities of Conditionally Updated plan content clarifies that optical sorting ORRA sought clarity sorting the material; equipment at CRPFs will correctly sort the material. on the timeline and plans for installation of 25 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Approval is conditional upon indicating how and optical sorting when CRPFs will obtain the needed sorting equipment at CRPFs. equipment, and how they will manage the material acceptably prior to obtaining the equipment. Contamination; Yes Plan content is acceptable. The ability for waste Yes Plan content is acceptable. generators to easily identify and properly prepare the material; Economic factors; Yes Plan content is acceptable. Environmental factors Conditionally Replace “NA” with a short explanation of why CAA from a life cycle foresees net environmental benefits (with respect to perspective; life cycle impacts such as greenhouse gas emissions, depletion of nonrenewable resources, air and water toxics, etc) from addition of the material to the USCL. The policy expressed in Conditionally This criterion will be considered addressed when/if ORS 459.015 (2)(a) – (c); the statutory criterion “Environmental factors from a life cycle perspective” is addressed. investments or other actions • Material Status, pg 67 Conditionally None proposed; DEQ infers that CAA presumes that that the prospective PRO will • Performance Against all CRPFs that have not yet done so will invest in take to support the inclusion ORS Criteria, pg 67-68 optical sorting equipment using the processor of a new covered product— commodity risk fee, and will manually sort the for example, investments in materials in the meantime, but CAA should clarify processing equipment or this. increases to the processor commodity risk fee to compensate commingled recycling processing facilities for higher costs; and a proposed schedule for Yes Proposal is immediate and feasible. adding the product to the List, allowing adequate time for updating education and outreach materials to inform the public of the change. 26 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) PET Thermoforms (Signal of Intent to Add the Material to the USCL by Plan Amendment During the Program Plan Period) (pg 69-73) Note: the recommendations below are provided to inform content of the future plan amendment and do not represent decisions on a proposal to add PET thermoforms to the Uniform Statewide Collection List: A detailed analysis of how OAR 340- Performance Against No In this second draft, CAA demonstrated progress with FPI, APR, and City of the proposed covered product 090- ORS Criteria, pg 71-72 analysis of the challenges faced by the material, Portland and cosigners performs against the criteria 0630(4)(g notably with respect to assessing market demand. supported addition of in ORS 459A.914(3); ) Screening markets’ environmental health and safety PET thermoforms to the impacts remains a marked gap, as does incentivization USCL in the first of producer design changes. See criterion-specific program plan period. comments below. The stability and maturity No Continue to add detail here. CAA indicated that of responsible end demand and end market development for the material markets; are dynamic, and that CAA “will explore the market interventions that may be necessary.” The plan amendment will need to lay out in more detail the markets that will be used and evidence of their true demand for the material (as opposed to tolerance of it as contamination), as well as any market interventions that CAA proposes to pursue. Recommendation that is reiterated from Draft 1: update this section to reflect that some PET thermoforms are on the USCL (specifically regarding the phrase that begins “CAA also acknowledges…”). The accessibility of No On pg 69 CAA indicates that it will assist CRPFs to responsible end markets implement sorting practices that route the material to proper bales. Add more detail with respect to CRPF collaboration and the type of bales foreseen. The viability of No See “stability and maturity” above (same DEQ responsible end markets recommendation applies). Environmental health and No As concerns regarding water usage, wastewater ORRA indicated that a safety considerations; management, and contamination management by plan amendment for reclaimers that accept PET thermoforms were raised PET thermoforms during rulemaking 1, DEQ would like CAA to include needs to prove that a market screening against the “responsible” standard thermoforms are being as part of its plan amendment submission (rather than effectively sorted at put off consideration of these issues until after the CRPFs and managed at 27 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) material is added to the USCL and the requirement to responsible end markets verify markets against the “responsible” standard in order for a proposal kicks in, which is what the plan currently suggests). to be approvable. The screening need not be as robust as full verification of facilities against the “responsible” standard, but if, for example, CAA intends to use markets in Mexico, DEQ would recommend that a CAA team actually visit the markets and explore their performance on these issues. Overall, CAA should beef up the analysis and demonstrate commitments related to environmental health and safety considerations of adding PET thermoforms to the USCL. The anticipated yield loss No Support the analysis with data. APR referenced yield for the material during the loss as a particular recycling process; problem. The material’s Yes Plan content is acceptable. compatibility with existing recycling infrastructure; The amount of the Yes Plan content is acceptable. Fix the typographical error material available; on pg 71: “material assessment processing solidly” – consider replacing with “material lists technical work group process.” The practicalities of No Add specificity regarding the equipment needed at sorting the material; CRPFs and CAA’s plans to invest in such equipment. Contamination; No In Table 6, top of pg 72, CAA has stated that it “proposes to develop mechanisms to address and minimize all these challenges through education and outreach efforts.” Consider adding ecomodulation fee maluses as an additional mechanism to address the problem of widespread use of non-recyclable adhesives, which results in the need for more hot washes at reclamation facilities, expending more energy, generating more wastewater, and yielding yellow flake. 28 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) In addition, CAA should specifically detail how it will address the problems caused by “lookalike” PVC packaging and steps it will take to ensure that PVC is kept out of, and removed from, the PET thermoform stream. The ability for waste No The plan lacks specifics; see also “Contamination” generators to easily recommendations above. identify and properly prepare the material; Economic factors; No In Draft 2 CAA demonstrated continued consideration of economic factors through the addition of updated commodity value data. However, widespread acceptance of PET thermoform packaging (via USCL onramp) may change economic conditions at CRPFs. Such impacts are not evaluated, and the plan lacks details regarding how CAA will compensate CRPFs for financial impacts. Environmental factors No Replace “NA” with a short explanation of why CAA . from a life cycle foresees net environmental benefits (with respect to perspective; life cycle impacts such as greenhouse gas emissions, depletion of nonrenewable resources, air and water toxics, etc) from addition of the material to the USCL. The policy expressed in No This criterion will be considered addressed when/if ORS 459.015 (2)(a) – (c); the statutory criterion “Environmental factors from a life cycle perspective” is addressed. investments or other actions • Material Status, pg 69 No Requiring the Oregon CRPFs to ship material to Utah that the prospective PRO will • Performance Against or further will increase their costs, but this is not take to support the inclusion ORS Criteria, pg 69-72 accounted for in the Processor Commodity Risk Fee of a new covered product— • Interim Preceding and CAA does not propose to provide compensation. for example, investments in Program Plan Clarify whether or not CAA proposes to make such processing equipment or Amendment Steps and investments. increases to the processor Timeline for PET commodity risk fee to Thermoform Inclusion compensate commingled on USCL, pg 72-73 recycling processing facilities for higher costs; and a proposed schedule for Yes CAA has updated the plan to indicate that it intends to adding the product to the submit a plan amendment for the material in 2025 List, allowing adequate time where it will lay out a full proposal for adding the 29 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) for updating education and material to the Uniform Statewide Collection list by outreach materials to inform December 31, 2027. the public of the change. Spiral Wound Containers (Signal of Intent to Add the Material to the USCL by Plan Amendment During a Future Program Plan Period), pg CMI and HCPA want 73: DEQ appreciates the updated information with respect to CAA’s intentions for spiral wound containers. DEQ recommends that CAA replace the aerosol containers on “Spiral Wound Containers” header with “Other Materials,” and list (i.e., as a signal) a) any other materials (besides PET thermoforms) that CAA the USCL. intends to add to the Uniform Statewide Collection List by plan amendment during the program plan period, and b) any other materials (besides spiral City of Portland and wound containers) that CAA intends to add to the Uniform Statewide Collection List in future program plan periods. CAA is also welcome to clarify cosigners supported what it sees as chief issues to be addressed with materials that fall into these two categories, and any actions that are planned or underway. Such addition of multiple information could rather await the full proposal, but interested parties generally are welcoming advance information for planning purposes. materials to the USCL during the first program plan period, and support any statements regarding the status of these materials in plan Draft 3. With respect to possible addition of non- hazardous aerosols to the USCL, ORRA sought clarity on how empty aerosols will be distinguished from full or partially-full containers. Paktech advocated for inclusion of HDPE can carriers on the USCL. 10. Efforts proposed to ORS • Specifically Identified Conditionally DEQ notes that this section consists of a) proposals ORSAC recommended support collection, processing 459A.875( Materials on the for how SIMs will be managed during the program inclusion of cost data or responsible recycling of a 2)(g) USCL, pg 73-76 plan period; b) variance requests with respect to the on densifiers for specifically identified material • Specifically Identified obligation to collect three PRO-list materials and send expanded polystyrene. (SIM), including: Materials on the PRO them to responsible end markets, and c) a signal of the • support for or Recycling Acceptance intent to conduct trial collections of polycoated paper ORRA and City of provision of recycling List, pg 76-79 packaging and single-use cups, the detailed plans for Portland and cosigners depot or mobile • Variance Requests, pg which will be proposed in a forthcoming program support a phased collection for a SIM; 80 plan amendment. DEQ presents its recommendations approach to collection • associated education • Proposal to Trial for each of these subsections below, one by one. of expanded and outreach efforts; Commingled polystyrene, but with an appropriate ramp-up 30 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) • associated investments Collection of Non- a) Approval of the sections regarding SIMs is and interim milestones. in processing; USCL Materials, pg conditional upon: ORRA encouraged • associated 80-83 • Addition of a short subsection focused on PET inclusion of trials development of thermoforms in the section on SIMs on the USCL focused on rural areas responsible end featuring a bulletized summary of actions planned as part of the ramp-up, markets; for PET thermoforms that will occur regardless of citing an opportunity in CAA’s success in onramping the material, and Pendleton. • Clarification on pg 78 that outreach to encourage proper separation of shredded paper will not be AHAM expressed limited to the relatively few communities that appreciation for currently promote its acceptance, as the material expanded polystyrene’s was promoted for acceptance widely in the past. inclusion on the PRO Recycling Acceptance b) DEQ recommends renaming and moving the list. content currently housed in the “Variance Requests” subsection to two other sections of the plan, as described below. On pg 80 in the subsection “Variance Requests,” CAA referred to practicability studies for two materials, aerosol containers and pressurized cylinders, and suggested that the cost of recycling these materials at a responsible end market exceeds the practicability threshold at OAR 340-090- 0670(5)(c). Firstly, DEQ would clarify for the record that it has not yet fully reviewed and accepted this determination, which would need to happen through the program plan process (e.g. submission of the practicability study in a subsequent plan draft or as a plan amendment). Furthermore, DEQ would like to clarify for the record that, contrary to content in the “Variance Requests” section on pg 80, CAA cannot remove pressurized cylinders from the PRO Recycling Acceptance list through the program plan; rulemaking would be required. Were DEQ to review and accept CAA’s practicability analyses for the two materials, CAA would be released from the need to send the materials to responsible end markets, but not from the need to 31 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) collect the materials. As such the section “Variance Requests” could be better named “Practicability Findings” in a subsequent draft, and should be moved into the section of the plan regarding Responsible End Markets. Information regarding collection of expanded polystyrene, also included in the “Variance Requests” subsection, would be better-placed in the section regarding collection and recycling of the PRO Recycling Acceptance list. A proposal to limit collection of the material to the metro area and Eugene does not strike DEQ as a good candidate for alternative compliance, as it would not meet the requirement for equitable provision of recycling services across diverse regions, pursuant to OAR 340- 090-0640(6)(c). If CAA rather has a compelling reason for why it cannot meet the convenience standard for the material by the end of 2027, DEQ would suggest that CAA lay this case out in Draft 3 as part of a request for administrative discretion with respect to when DEQ would expect the convenience standard to be met. The request should lay out a timeline for collection system development that includes interim milestones. If costs of densification are part of the rationale, CAA should include cost estimates in its written analysis. c) CAA may make improvements/updates to the section regarding trial collection proposals for two other SIMs (single-use cups and polycoated paperboard) to the extent that it is ready to do so, or may rather wait to address DEQ’s suggestions in the plan amendment to be submitted later in 2025 Suggestions from Draft 1 that remain to be addressed are as follows: • Clarify in the second set of bullets on pg 81 that education efforts will encompass residential and non-residential generators alike. 32 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) • Incorporate research into the fate of plastic residue at end markets into the project plan. • If the materials will be marketed separately or differently from the reporting categories designated in rule (see proposed rule 340-090-0670 (6)(c)(B)(i)), propose disposition reporting categories for the materials collected in the trials. On pg 81, correct the following typographical error: “Currently, these trials are though tot include…” how the proposed approach n/a n/a Evidence of consultation with TRP, NAPCOR, APR, has been informed by Sonoco, and others was provided, with many consultations with interested additional consults proposed. parties; a sequenced approach to n/a n/a CAA proposed a sequenced approach (trial collection, implementing large-scale including design/planning and consultation with improvements if they are relevant partners) for polycoated paper and plastic required to address the cups. CAA has also proposed a sequenced approach problems that spurred the for thermoformed PET packaging. Less sequencing is designations of multiple (2+) needed for other materials. materials; and any other efforts to ensure n/a n/a The plan noted collaboration with special recycling successful, environmentally- services to ensure that responsible disposition beneficial and responsible requirements are met for PET thermoforms; this recycling of a SIM as should be reiterated in the additional subsection on required by ORS PET thermoforms to be added to the section regarding 459A.896(2). For materials SIMs. collected through producer take-back initiatives and special recycling services, this could include collaboration with said services to ensure that responsible disposition requirements are met. 11. Achievement of statewide ORS Initial Plastic Recycling Conditionally In Draft 2, CAA updated its calculation of the plastic recycling goals: A 459A.875( Rate Projections, pg 83- statewide plastics recycling rate and its plan of action description of how the PRO 2)(a)(A) 86 to incorporate the most recent, albeit preliminary, will support the collection and and ORS DEQ data. 33 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) recycling of covered products 459A.875( as necessary to meet the 2)(f) Approval is conditional upon statewide plastic recycling • adding some more clarifying detail about the goal. This subsection could agreed-upon methodology with DEQ for include: calculating the statewide plastics recycling rate, • updating plastic recycling rate projections with updated data from the 2023 material recovery survey provided by DEQ in mid-November, and to reflect the decision made in rulemaking 2 as to whether or not garbage bags are considered packaging, and • (if these updates result in indication that the 2028 statewide plastics recycling goal cannot be met through existing plans alone) revision of Table 12 to incorporate additional actions that will enable the target to be met. Recycling rate projections for 459A.875( Conditionally In addition to the recommendation to update data once the first program plan period. 2)(f) for the Draft 3 submission, there is one typographical error in Table 8: the top line in the table should be labeled “Generated tons” rather than “Disposed tons.” Demonstration that plans are 459A.875( Conditionally Update as described above. Prospects of the plan for ORRA recommended a adequate to achieve the first 2)(a)(A) achievement of the goal could be clarified further by step-by-step approach (2028) goal. summing the additional recycled tonnages resulting to achievement of the from each action together and comparing the resultant recycling goal. figure with the tonnage gap between current recycled volume and the volume needed to meet the goal, Ridwell recommended perhaps in a paragraph following Table 12. considering how partnership with alternative collection systems could contribute to meeting the 2028 goal. 12. Ensure that four classes of ORS Ensuring Responsible Conditionally Approval of this section is conditional upon: covered products, identified in 459a.875( End Markets, pg 86-115 ORS 459A.869(7), and 2)(a)(G)- 1) updating the verification criteria as described contaminants collected with (I) and below, those covered products, are OAR 340- 2) clarifying how the category of non-conformance is managed and disposed of 090-0670 to be attributed in a verification when a criterion is consistent with the goals, 34 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) standards and practices attributed two or more categories of non- required by ORS 459A.860 to conformance in Table 14 on pg 100-102, 459A.975 and transferred to 3) updating three of the five variance proposals, responsible end markets. 4) describing an approach to bale auditing that is both robust and safe to implement (DEQ suggests that CAA deploy alkaline battery-powered trackers), and 5) evaluating sufficiency of the responsible end market program budget to implement practicable actions in the recycling supply chain. Provide examples of end ORS Example End Markets, pg Yes The plan content is satisfactory: an example list of markets, as defined in OAR 459A.875( 72-73 markets is provided on pg 88. 340-090-0670(1), that may 2)(a)(H)(i) use the material collected from covered products in the manufacturing of new products; Describe how the prospective ORS • Verification of REMs, Conditionally In Draft 2, CAA added a detailed verification standard PRO will verify that the 459A.875( pg 88-103 for assessing the extent to which facilities managing recycling supply chains up 2)(A)(H) • Tracking Material Oregon’s waste collected for recycling are through and including the and Flows, pg 108-110 “responsible.” DEQ supports CAA’s partnership with end markets are meeting the OAR 340- GreenBlue’s Recycled Material Standard to develop “responsible” standard, 090- this standard and apply it to end markets. including through 0670(2)- (3) Further feedback relevant to nested requirements is outlined below, including conditions of approval. (Step 1) initial screening • REM Verification Yes Obtaining self-attestations is represented as first, assessments (self- Overall Approach, pg screening step of a 3-step verification approach on pg attestations). Regarding 89-91 89, and an expanded vision for how to conduct the these, the program plan • Initial Screening Steps, screening process is laid out at pg 91. Notably, could indicate: pg 91 information provided by facilities in the self- information that will attestation process will be used for determining be used to complete whether or not any variances apply and a full or the screening partial-scope verification is needed. This strikes DEQ assessments; and as a rational approach. plans for Yes On pg 91 CAA indicated that it is offering to obtain distribution of self- market self-attestations on behalf of CRPFs in order attestation forms to to prevent duplication of effort. 35 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) supply chain entities; and (Step 2) PRO verifications. Regarding these, the plan could include: Details on the REMs Verification Yes CAA’s criteria for the selection of Certification verification Overall Approach, pg 89- Bodies (CBs), listed on pg 89-90, are holistic and body(ies) that will 90 acceptable. be contracted with. Criteria for review and approval of verification bodies and verifiers, such as accreditation requirements, professional liability insurance requirements, policy requirements for prevention of conflict of interest, etc. The approach for • Verification Sampling Conditionally DEQ applauds CAA and RMS for providing a Interested parties verifying that Plan, pg 93 detailed list of criteria – a verification standard – that commented both that downstream entities • REM Verification interested parties can react to and use as a basis for criteria are not strong meet the Criteria (Preliminary), discussion of where Oregon’s “responsible” bar enough and that they “responsible” pg 94-102 should be set. are too onerous, standard, including • Verification of Chain of The verification standard on pg 94-102 consists of suggesting that the Custody, pg 102-103 five groupings of criteria: four corresponding to “responsible” bar could • Verification of elements of the “responsible” standard in rule at OAR be landing in Recycling Yield for 340-090-0670(2)(b), and a fifth for labor. approximately the right Materials Mixed place: Together in a Bale, pg DEQ requests clarification in Draft 3 related to how City of Portland and 103 non-conformance will be addressed. In Table 14 on pg cosigners would like to • Tracking Material 100-102, where a category of non-conformance is see monitoring of Flows, pg 108-110 assigned for each criterion, please clarify in the text effluent and emissions what is meant when two or more categories are added to the standard. indicated and separated by back-slashes. For example, APR meanwhile would 36 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) does it mean the non-conformance could fall into one like to see many criteria or the other category on a case-by-case basis as downgraded from determined by the Certification Body in alignment “minor non- with ISO 19011? conformance” to “recommended best Other nested feedback follows below. practice.” 1. A description of Yes CAA noted that all facilities (besides plastic how facilities will converters, should DEQ approve the related variance be selected for site proposal) will receive a site visit by July 1, 2027, and visits and/or desktop one site visit every five years thereafter, with desktop verification audits conducted in years when site visits do not (sampling plan) occur. Criteria by which facilities are to be prioritized for site visits are listed on pg 94. Overall, the approach appears sound. 2. How compliance Conditionally CAA could consider moving “Environmental with applicable laws Compliance” so that it is part of the Compliance and treaties will be grouping of criteria rather than the Environmentally- verified (element #1 sound element, which could be strictly focused on of the “responsible” environmental management quality and standard). environmental performance. Otherwise, the criteria reflect that a full compliance audit is envisioned as part of the verification process, and that aligns with the definition of “responsible” in rule. 3. How chain of Yes The Transparency criteria appear thorough. custody transparency will be verified (element #2 of the “responsible” standard) 4. How Conditionally Generally these criteria fairly comprehensively cover ORSAC raised ORSAC raised concerns environmental the impacts that end market facilities can have on the concerns as to whether as to whether or not the soundness will be environment. Criterion-specific feedback is as or not the Operation Operation Clean Sweep verified (element #3 follows: Clean Sweep protocol protocol could be applied of the “responsible” could be applied to all to all types of facilities • Break “no activity on-site causes obvious standard) types of facilities with with plastic leakage, and contamination to the local environment” out from plastic leakage, and as as to whether or not the the Environmental Compliance criterion into its to whether or not the own criterion focused on containment of waste, as this is an explicit and performance-focused piece of 37 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) protocol is adequately the “environmentally-sound” definition in rule. protocol is adequately robust. Attribute “Disqualifying/Major” as the non- robust. compliance category. • Account for energy use, as sustainable use of inputs is an explicit piece of the “environmentally-sound” definition. • Add GHG emissions to the Environmental Impact Measurement criterion. • Upgrade the “Management of Resin Loss” non- compliance category to “Major/Minor,” and report in annual reporting on any gaps in the effectiveness of using Operation Clean Sweep as the bar to which facilities are being held. • Describe a pathway for how continuous improvement will be made to the standard to address the emergent issues of microplastic pollution and hazardous substances embedded in recyclate passing along to the next product. 5. How adequate Conditionally Yield is measured against the 60% threshold for the yield will be verified entire recycling supply chain (everything downstream (element #4 of the of the CRPF or PRO collection point up through to “responsible” the end market) rather than an individual facility; that standard), including: probably needs to be made explicit. Consider writing the requirement to use proportional accounting when materials mix into the standard. Protocols to be Accounting for Yes CAA is clear in this section that they will use applied when Disposition and Yield, pg accounting approaches that fulfill the relevant reporting 109-110 requirements in rule. disposition for and calculating yield in recycling supply chains in which obligated Oregon materials mix with non- obligated materials, such as material from another state. 38 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Plans to incorporate n/a Whistleblower Process, n/a DEQ welcomes CAA’s initiative, laid out on pg 94, to ORSAC sought community feedback into pg 94 operate a whistleblower channel for the responsible additional clarity on the verifications of markets and end market verifications to allow communities how the whistleblower other downstream entities.* adjacent to facilities to share input regarding how channel would be facilities perform against the “responsible” standard. operated. DEQ considers that the success of such a channel will depend upon: • how broad and targeted outreach regarding the whistleblower channel is, and • the extent to which information is being provided to potential whistleblowers, i.e., do they have something to comment on? In the third draft, CAA could provide more detail addressing each of these points and different scenarios. For example, how would potentially- impacted communities of end markets outside the US be identified and contacted? And what information would be provided to potential users of the whistleblower channel – just general information about the “responsible” standard, or any facility- specific information? (e.g. ““Facility A” is subject to the “responsible” standard and we seek your input on whether or not it meets x, y, z criteria,” or, alternatively, “Facility A has been verified and met x, y, criteria, but has a non-conformance on z criterion, do you have any information that would disagree with this finding?”) (Pre-verification requirement ORS n/a n/a No request to send materials to non-mechanical for chemical recycling) For a 459A.875( recycling was made. method other than 2)(a)(I)(iv mechanical recycling, an ) analysis of the environmental impacts for the proposed method compared to the environmental impacts of mechanical recycling, incineration and landfill disposal as solid waste. 39 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Requests for temporary OAR 340- Requests for Temporary Conditionally DEQ approves two of the variance requests as they ORSAC recommended variance from the screening 090- Variance in Verification, are and requires edits as conditions of approval for the that CAA seek clarity and verification deadlines 0670(3)(e) pg 106-108 other three, as well as additional general edits to this on willingness of indicated in OAR 340-090- section, as follows: converters to be held to 0670(3)(b), accompanied by the “responsible” • Renumber the list of requests for temporary justification variances – the list shows nine requests, but there Requests for temporary OAR 340- OBI recommended appear to only be five (i.e., variances for 1. facilities variance from the required 090- seeking more industry that are already verified by another PRO (for components of a verification 0670(3)(h perspectives on variance from criteria covered under the other accompanied by justification, ) responsible end markets verification), 2. facilities that are already certified if such requests are being (seems aligned with under another standard (from criteria covered under made. Justification could DEQ recommendation the other standard), 3. domestic paper mill (from consist of criteria for regarding the variance numeric estimation of yield), 4. plastic converters identifying facilities that for plastic converters). (from the need to be verified at all, for two years), would receive more limited and 5. domestic and Canadian landfills (from the verifications on the basis of AF&PA expressed need to be verified besides screening, unless characteristics such as support for variances 1, evidence of non-compliance is presented. In the location and role in the 2, and 4. current version’s list of variance proposals, some supply chain, supporting rationales erroneously get a number despite being a rationale for the previous request rather than a distinct request. • Indicate a desired duration for each variance. • For variance requests #1 and #2, either: o provide benchmarking results that compare the draft CAA “responsible” standard vs the other standards proposed to be counted toward meeting the “responsible” standard (e.g. Clean Farms, Valipac, EUCertPlac, RIOS, FDA LNO, RMS recycled content, SCS recycled content), or o indicate that such info will be provided in a plan amendment when requesting the variance. Specifically, that would mean CAA is only signaling the intent to request such variances in the current program plan, but that actual approval would be contingent on a future plan amendment). • Revise the variance proposal (#4) for plastic converters to request variance from the requirement 40 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) to obtain self-attestations for plastic converters before the program start date. Then engage plastic converters and other interested parties in plastic recycling in discussion of how to address the requirement that converters be verified against the “responsible” standard. Submit a follow-up variance request, informed by these discussions, to DEQ. The approach to variance on the need to verify converters (that produce packaging and products for food and beverage and children’s applications) should strike a balance among the industry’s concerns about the new requirements conflicting with existing Non-Disclosure Agreements, and the department’s concerns with respect to toxicity impacts. Actions and timeline to ORS • Investigating Non- Yes CAA has provided additional, substantial information investigate if the prospective 459A.875( Compliance, pg 103 on its approach to non-compliance in this second PRO learns of potential non- 2)(A)(H) • Actions to Address draft, including specification of what particular compliance through the and OAR Non-Compliance, pg information regarding non-conformance of a verification/certification 340-090- 103-106 particular facility will be shared with DEQ, and process or otherwise; 0670(5) definitions and examples of the three levels of non- Steps the PRO will take and conformance -- disqualifying, major and minor, as timelines for action when well as timelines for action to address each type of verification, certification, or non-conformance (see Table 15, pg 105-106). auditing indicates that the “responsible” standard is not DEQ recommends ground-truthing the proposed being met; and timelines for action for each class of non-conformance presented in Table 15 with some real-world scenarios, to evaluate whether or not they are reasonable. How the prospective PRO ORS Tracking Material Flows, Yes CAA has proposed developing a holistic material will track material flows, 459A.875( pg 108-110 tracking system that will track materials originating at enabling required quarterly 2)(A)(H) both PRO collection points and at CRPFs. disposition reporting per and ORS ORS 459A.887(6)—for 459A.887( example, through use of a 6) database, including a description of any plans for cooperative development and use of such a database with 41 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) commingled recycling processing facilities; Description of how the PRO ORS • Auditing the Conditionally Approval of these sections is conditional upon BAN indicated that will audit results across all 459A.875( Verification Program, describing an approach to bale auditing that is both paper-based tracking is facility verifications. This 2)(A)(H) pg 110 robust and safe to implement (DEQ suggests that limited by reliance on section could include: and • Random Bale Auding, CAA deploy alkaline battery-powered trackers). reported data that can Details of the approach OAR 340- pg 110-112 be easily disrupted or taken toward auditing 090- In Draft 2, CAA proposes to take a chain of custody misrepresented. BAN the accuracy, quality, 0670(4) (presumably predominantly desktop audit) approach also recommended the and comprehensiveness rather than a remote tracking approach to fulfillment use of alkaline battery- of verifications. of the requirement to conduct random bale auditing. powered trackers and Key contractor(s) or n/a Worker safety is cited as the main factor motivating indicated that its auditors for random bale this proposal. trackers can work with auditing and information alkaline batteries. about their qualifications; DEQ suggests that CAA rather consider an approach The sampling methodology ORS to random bale tracking that initially employs alkaline City of Portland and to be used for random bale 459A.875( battery-powered trackers, and edit Draft 3 to reflect cosigners also auditing including 2)(A)(H) this and furthermore accommodate DEQ’s comments expressed support for Quantity of trackers and on the first draft with respect to design of the an alkaline battery- to be deployed. OAR 340- sampling approach. The main downside of using powered tracker Where and how they 090- alkaline-powered trackers is battery lifespan, which approach to the auditing will be placed (in 0670(4) DEQ understands to be on the order of one year vs requirement. bales and/or in several years for lithium batteries. For many end-of- consumer bins, what life pathways, one year will be sufficient to follow the type of materials, product through to the end market. The use of alkaline etc. batteries may also increase tracker size and affect the The approach to likelihood of a tracker affixed into a piece of waste at securing the trackers curbside making its way through the CRPF sorting to the targeted process and into a bale. Placement of trackers loosely materials and into bales at CRPFs, however, should not be affected. preventing their early destruction or DEQ is concerned that a desktop audit approach loss. would not deliver as robust of auditing as an approach Safety that uses remote trackers. DEQ would cite its prior considerations. experience with e-cycles provider Total Reclaim as evidence of this. In that situation there were many paper records indicating that all was well, but discrepancies were only detected through the use of remote trackers. 42 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) DEQ considers the safety risk posed by the presence of batteries in waste streams to be a risk that the facilities (MRFs and end markets) encounter daily. DEQ’s material recovery survey data indicate that contamination in the commingled system is as high as ever, and batteries are among the contamination entering the system. That said, CAA’s desire to minimize liability is understandable – risk may be low, but consequences of a battery igniting could be significant. However, DEQ considers that CAA can design its auditing approach in a way that would limit risk to an acceptable level and that would employ battery- powered remote trackers. For example, CAA could use trackers that are powered by alkaline rather than lithium batteries. Alkaline batteries are commonly shredded without advance preparation for recycling; consequently, DEQ considers that the risk of ignition due to shredding (at, say, a plastic reclamation facility) or crushing is acceptable. The proposed approach to On pg 112 CAA affirmed that DEQ will be informed reporting auditing results to if any loads and bales are not compliant with the the department, such as shipment documents. through the submission of audit reports from the Note that DEQ may audit CAA’s auditing with its auditor or providing access own random bale tracking per OAR 340-090-0670(4). to a user interface where real-time tracking results are visible; Arrangements the PRO ORS • Supporting Responsible Conditionally Generally DEQ finds this section to be improved in APR suggested more proposes to make with 459A.875( End Markets, pg 112- Draft 2 with the fleshing out of a more proactive investment into processors to ensure that 2)(A)(H)( 113 strategy with respect to market development, which markets, including covered products identified in v) • Responsible End could partially allay end market concerns regarding funding for reclaimers ORS 459A.914 are recycled Market Development the balance among burdens and benefits of the and converters to at a responsible end market, Guiding Principles, pg Recycling Modernization Act for their industries. reduce yield loss of including any investment 114-115 PET thermoforms, and intended to be made to A more proactive strategy could be supported by the • Equity in Responsible for greater processing support processors or other attribution of additional budget toward the responsible End Markets, pg 161 capacity in order to practicable action (as defined end market project; only 1% of the program budget in meet recycling goals. Appendix E is allocated toward the project. Evaluate APR also found the 43 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) in OAR 340-090-0670(5)) to the sufficiency of this budget in Draft 3 to fulfill the explicit “lowest cost” be undertaken; requirement to implement practicable actions. focus for identifying markets to be problematic and potentially run contrary to the Act’s recycle more and better mission. Any equity approaches n/a n/a At pg 161, CAA laid out equity principles with pertaining to practicable respect to implementation of practicable actions at end actions such as markets. DEQ supports the principles but they would development of new need to be upheld in implementation to add value. markets.* Perhaps a first opportunity to showcase how these principles will be applied lies with the forthcoming onramp proposal for PET thermoform clamshells, which may involve a markets development proposal? Any other information on ORS Producer Exemptions Yes CAA proposed to collaborate with producers seeking how the organization will 459A.875( Under 869(13) exemptions under ORS 459A.869(13) to ensure that ensure that responsible 2)(a)(G) they are being recycled at REMs. management of covered products is maintained through to final disposition. 13. Upholding Oregon’s ORS Upholding Oregon’s Conditionally DEQ approves of CAA’s general approach to this materials management 459A(2)(a Materials Management requirement, i.e., collection of environmental data hierarchy: )(H)(3) Hierarchy, pg 115-116 from end markets and the development of preferred Why the end markets hierarchies of markets, with prioritization of materials foreseen for obligated for which there is known differentiation among materials represent the markets in terms of impacts. highest and best use on a material-specific basis. This The following edits are conditions of approval: could include: Focus on particular • Fix the typographical error on pg 115, materials for which “impactsduring,” there are significant • On pg 115, regarding use of glass in aggregate differences in the applications, replace “which would not be environmental impacts considered a REM” with “which would not be of different types of 44 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) markets, such as glass considered in alignment with Oregon’s materials or cartons. management hierarchy.” Plans to develop new markets • On pg 115, delete the sentences “Therefore, CAA or undertake other practicable does not need to perform an environmental impact actions if the end markets evaluation for alternative glass markets. This planned for initial use do not evaluation will only be conducted on available represent the highest and best markets.” Technically the statute does not limit the use. requirement to available markets – if, for example, a lower-impact market expressed interest in setting up shop in the region, PRO action to facilitate the establishment of the new market would be in alignment with the statutory language. 14. An education and outreach ORS Education and Conditionally To upgrade DEQ’s recommendation from (Public comment was plan describing how the 459A.875( Outreach, pg 117-136 “Conditionally” to “Yes,” in Figure 9 on pg 124 and not open on this section prospective PRO will meet 2)(a)(J) Figure 11 on pg 131, indicate which materials from during the second draft obligations and cultivate and OAR batch 1 will be made available to local governments review as it was already widespread customer 340-090- earlier, on February 1, as part of a preliminary, “beta” conditionally approved) awareness and understanding 0650(1)(c) (unbranded) batch of materials. of the Uniform Statewide DEQ expects that the beta batch will include the Collection List and recycling USCL Guide and the newsletter in English and services provided. Spanish, as well as the USCL images. Also update the text of the subsection “Schedule Including Proposed Timing of Start-Up Approach” on pg 131-136 to account for the beta batch. Goals for education and ORS Goals for Education and Yes CAA has updated the goals section in alignment with outreach efforts and 459A.875( Outreach, pg 117-118 the conditions of approval from Draft 1. information on approach for 2)(a) measuring progress toward the goals. Metrics to evaluate performance could include public awareness, public engagement, and accessibility. An explanation of how the ORS proposed suite of materials 459A.875( and promotional campaigns 2)(a)(J) will support: 45 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) widespread awareness Supporting Widespread Yes The plan adequately conveyed intention to connect and understanding for all Awareness and with and educate different user groups customers in Oregon, Understanding, pg 118- comprehensively. including residents living 125 in single-family homes and multifamily communities, as well as commercial businesses, institutions, and non- governmental organizations. a phased approach that A Description of the Yes Plans for the statewide campaign encompassed an first builds awareness Statewide Promotional initial awareness phase themed “change is here!” among Oregon residents Campaign, pg 125-128 Thereafter, phase 2 will target specific (frequently, and organizations that infrequently and non-participating) audiences with change is coming and the specific messages. DEQ considers this sequencing reason change is needed, reasonable and appreciates that advance surveys of and then provides the Oregon residents will inform campaign design. detailed instructions for customers to participate successfully in the new system (with electronic educational materials underpinning both phases). A description of the ORS Schedule Including Yes CAA will create an online portal that local customizable educational 459A.875( Proposed Timing of Start- governments, their service providers and potentially collateral that will be 2)(a)(J)(i) Up Approach, pg 131-136 commercial businesses can access to find, customize, prepared for local print and mail educational collateral at no cost to governments to communicate them. the Uniform Statewide Four batches of materials to be made available to local Collection List, explain how governments sequentially in 2025 are depicted in Fig items should be prepared for 11 on pg 131 and described on pg 131-135. Specific recycling, and highlight to collateral will include: the public the importance of • Photos/illustrations of accepted items and not placing contaminants in photos/icons of key contaminants commingled recycling • Sample text for informative, motivational, and collection, including: instructional messaging collateral that will be made available in 46 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) electronic format to local • Handouts and/or mailers, including postcards, governments and their brochures, full-page flyers, door hangers, and authorized service magnets providers for • Social media toolkits and digital media materials customization to local • Signage for depots, commercial and multifamily conditions; recycling enclosures collateral that will be • Decals for roll carts printed and then made available for distribution, including but not limited to signage for depots and commercial and multifamily recycling enclosures as well as decals for roll carts; and electronic files that will ORS be made directly available 459A.875( to the public, including a 2)(a)(J)(i)- website describing the (ii) and locations and operating OAR 340- hours of collection points 090- for PRO recycling 0650(1)(c) acceptance list items, and how such items should be prepared for drop-off. A description of the ORS A Description of the Yes As referenced above, the plan described a vision for a statewide promotional 459A.875( Statewide Promotional two-phase statewide campaign, with specific target campaigns to supplement the 2)(a)(J)(iii Campaign, pg 125-128 audiences, messaging, and mediums of education and outreach ) communication for each. through the customizable The approach as described is sufficient to meet the materials. This could include requirement. but is not limited to messaging distributed through print publications, radio, television, the Internet, social media, and online streaming services; A schedule for the ORS Schedule Including Conditionally The plan included a schedule for developing the development of educational 459A.875( Proposed Timing of Start- educational program from April 2024 onward, with collateral and implementation 2)(a)(J)(ii) Up Approach, pg 131-136 47 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) of statewide promotional surveys and analysis, concept preparation, CBO campaigns that ensures a engagement and more in the initial months. successful program launch and leaves adequate time for Later in 2024 and early 2025, CAA will work with the mandatory consultation on Recycling Council, conduct test campaigns, engage the customizable collateral with local governments, and roll out customizable with local governments and materials in four batches, with the first batch made their designated service available to local governments on April 4, 2025. providers, review of the collateral by the Recycling Approval is conditional upon updating Figure 11 (as Council, and review and well as duplicate Figure 9) and the accompanying approval of the collateral by schedule-focused text to account for materials from DEQ. batch 1 that will be made available to local governments earlier, on February 1, as part of a preliminary, “beta” (unbranded) batch of materials. DEQ expects that the beta batch will include the USCL Guide and the newsletter in English and Spanish, the label/in-mold graphic for roll carts, and the USCL images. A description of how the ORS A Culturally-Responsive Yes CAA has satisfied all conditions for approval of this prospective PRO will ensure 459A.875( Approach, pg 128-130 subsection. DEQ particularly welcomes the expanded that educational materials and 2)(a)(J)(i) (to 11) list of languages into which materials will be campaigns are culturally and ORS translated. responsive to diverse 459A.893( audiences across this state, 3) including people who speak languages other than English and people with disabilities; are printed or produced in languages other than English; and are accessed easily and at no cost to local governments and users of the recycling system. This description could include practices employed to meet these requirements, such as*: 48 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) engagement with local n/a n/a CAA has added detail on its vision for collaboration community-based with CBOs. organizations and relevant members of the public to develop and distribute educational materials and campaigns, use of images to convey CAA proposed universal design concepts, including information rather than using imagery, icons and other visuals rather than text, large blocks of text to more quickly and easily communicate information and demonstrate processes. use of imagery and models CAA will monitor updates in the American that represent a variety of Community Survey to ensure transcreation and other cultures and Oregon’s elements of the education and outreach strategy diverse communities, remain in line with demographic shifts within the state. Fix the spelling error on pg 129: “elemtns.” avoidance of small print Universal design concepts, including contrast and text size and reverse type (light for easier reading, were proposed. text on dark background), testing of imagery to Universal design concepts, including accounting for ensure designs are color- color blindness and ensuring legibility when selecting blind friendly, color palettes, fonts, text size, and imagery, were proposed. exploration of designs that The plan encompasses in-mold labeling and a style allow for text in both guide for terms. CAA has also clarified that cart labels Spanish and English in the will be printed in multiple languages. program brochure/mailer, printed decals and signage, and in-mold label for roll carts. translation of the materials ORS CAA will translate and transcreate materials into the 459A.893( following languages spoken in Oregon by at least 3)(b) 2,000 people over the age of five who spoke English less than very well according to the most recent American Community Survey: 1. Spanish 2. Simplified Chinese 49 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) 3. Traditional Chinese 4. Korean 5. Arabic 6. Russian 7. Vietnamese 8. Tagalog 9. Hindi 10. Somali 11. Ukrainian CAA will also create a process through which local governments can request translation or transcreation into additional languages spoken in Oregon by at least 1,000 people over the age of five who spoke English less than very well according to the most recent American Community Survey. Plans for an online portal or ORS Plans for an Online Yes CAA proposed to create an online portal that local other means to provide local 459A.875( Portal, pg 124-125 governments, their service providers and potentially governments and their 2)(a)(J)(ii) commercial businesses can access to find, customize, designated service providers print and mail educational collateral at no cost to (and any other entities, if them. planned) easy access to Specific collateral will include: educational materials at no • Photos/illustrations of accepted items and cost; photos/icons of key contaminants • Sample text for informative, motivational, and instructional messaging • Handouts and/or mailers, including postcards, brochures, full-page flyers, door hangers, and magnets • Social media toolkits and digital media materials • Signage for depots, commercial and multifamily recycling enclosures • Decals for roll carts The prospective PRO could n/a Relevant Experience, pg n/a The plan outlined the relevant experience of CAA and describe the relevant 136 its main educational partner, The Recycling experience of team members Partnership, on pg 136 of the plan. that will be developing the USCL educational resources and promotional campaigns 50 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) or, if contracting with a communications consultant, describe the type of experience that will be sought in the solicitation process. 15. Product Speciation for the ORS Product Speciation for Yes The 60-material list of reporting categories on pg 137- (Public comment was Fee Structure 459A.875( the Fee Structure, pg 139 is approved. not open on this section 2)(a)(E) 137-139 during Draft 2 review and ORS as it was already 459A.875( conditionally approved) 2)(h) 16. Description of how the ORS • Financing (besides No Recommendations pertaining to specific requirements prospective PRO will establish, 459A.875( Product Speciation follow below. calculate and charge 2)(a)(E) subsection), pg 137- membership fees to member 158 producers, including • Appendix E, Itemized Budgets by Program Year, pg E35-E39 • Appendix G, Detailed Fee-Setting Methodology, pg G1- G34 the schedule of membership ORS Interim Base Fee No A simplified version of a fee schedule with only eight fees (base rates), 459A.875( Schedule Ranges, pg 142- material categories was provided as a preliminary accompanied by rationales 2)(h) 144 schedule in Draft 1, and has been expanded to show for: fees under three scenarios (high, medium, and low estimates of system costs) in Draft 2. The schedule can be approved (if it meets all relevant criteria) when updated in a subsequent plan version to reflect the full list of reporting categories and the amounts that will be charged for each. How the schedule ORS • Meeting the Statutory Conditionally The plan outlined an approach, the “discretionary ensures that higher fees 459A.884( Requirement, pg 144- state-adjustment factor,” to ensure that recyclables are are charged for non- 3)(a) 146 charged less than non-recyclables. The approach recyclables than for appears sufficient to deliver the statutory requirement recyclables on a 51 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) weighted-ton average of recyclables being charged, on average, less than basis; and non-recyclables. Approval is conditional upon updating the subsection in a subsequent version of the plan to reflect application of the method to an updated fee schedule. How the schedule ORS • Appendix G, Detailed No DEQ’s recommendations, which pertain particularly ensures, to the extent 459A.884( Fee-Setting to the appendix claimed confidential by CAA, are possible, that materials 3)(b) Methodology, pg G1- located in confidential Appendix B of this document. do not cross-subsidize G34 one another. • Development of the the algorithms by which ORS Base Fee Algorithm, pg Conditionally fees will be calculated 459A.875( 139-142 2)(a)(E) any producer fee incentives n/a Producer Fee Incentives n/a CAA characterized lower fees on average for non- other than graduated fee Other than Graduated Fee recyclables as a fee incentive besides graduated fee adjustments that will be Adjustments, pg 144 adjustments. offered; Graduated fee algorithm and ORS Graduated Fee Algorithm Conditionally CAA has responded to feedback on its first draft by methods, including 459A.875( and Methods, pg 147-155 updating this section of the plan with a proposal for 2)(a)(E)- implementation of two ecomodulation bonuses, those (F) and mandated in proposed rule (referred to in the program ORS plan as Bonuses A and B), during the first program 459A.884( plan. 4) Approval of this subsection is conditional upon: • inclusion of additional detail on Bonus B (e.g. bonus magnitude and cap amount, business and eligibility rules, etc) so that an equally detailed vision for the implementation of Bonus B as for Bonus A is presented, • moving the start date for Bonus B one year earlier, to the 2027 fee year, and • addition of language or a table laying out the rationales for various key design decisions and how they are aligned with the overall goal of delivering continual impact reduction. In the plan, CAA describes its vision for implementing two bonuses proposed in the current 52 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) rulemaking as mandatory offerings from the PRO to member producers, a simple bonus for voluntary evaluation and disclosure of life cycle impacts of products (which CAA terms “Bonus A” in the plan) and a larger bonus for substantial impact reduction as demonstrated through a life cycle impact evaluation and disclosure (“Bonus B”). CAA proposes to begin applying Bonus A to producer fees in the 2026 program year, and Bonus B in the 2028 fee year. DEQ accepts the premise that some phase-in may be needed to ensure smooth implementation of ecomodulation, but requests that draft 3 of the plan include a start year for Bonus B of 2027. With that change, the PRO would have some experience with its implementation to inform development of its second program plan for 2028-2032. Other nested recommendations follow below. the algorithm for the ORS The Algorithm and Conditionally Overall, DEQ considers CAA to be on a good path graduated fee approach, 459A.884( Accompanying with the development of the bonuses. indicating the criteria 4) and Descriptive Text for the • It is proposed on pg 149 that CAA will set Bonus and magnitude of ORS Proposed Graduated Fee A at 10% of base fees associated with all primary modulation; 459A.875( Structure, pg 147-152 materials in the SKU that is being assessed, capped 2)(a)(E) at a maximum fee reduction of $20,000 for each SKU or batch of SKUs that are evaluated and disclosed in a project report. A 10% discount strikes DEQ as an appropriate bonus magnitude for simple evaluation and disclosure. Generally, the magnitude for this bonus needs to land somewhere that is attractive to producers but does not lead to “factory-production” of life cycle assessments for the mere purpose of attaining bonuses rather than out of interest in impact reduction opportunities. • As for the $20k cap, it seems an appropriate mechanism for partially addressing concerns about fairness and the potential for large producers to have greater access to (because they have in-house LCA capacity) and gain more (because they have 53 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) greater supply volumes) from these bonuses than small producers. For Bonus B, CAA proposes to apply the bonus to primary packaging material in the SKU, and reward three tiers of impact reduction with progressively higher bonus magnitudes and caps. The magnitudes and cap amounts corresponding to each tier will be proposed in the third draft plan, with the Bonus B amount in all cases larger than what would have been awarded if the producer sought Bonus A for the same SKU instead. Inclusion of both ORS Yes DEQ generally approves of the proposed approach. ORRA noted additives penalties and rewards in 459A.884( CAA proposes to start the program only with Bonus A to nursery packaging the approach to 4) and Bonus B, the bonuses proposed as mandatory in that enable optical graduated fees the current rulemaking, although it is not precluded sorting (e.g. possible from proposing other bonuses or penalties. focus for an Despite statute mandating both penalties and rewards, ecomodulation penalty). DEQ is amenable to a phased-in approach, with an expectation that penalties would roll out starting from APR noted the problem the second program plan. of non-recycling compatible adhesives As the program rolls out DEQ welcomes CAA’s and labels on PET evolving thinking on penalty design, perhaps using thermoforms. information from the life cycle evaluations, such as the hazardous substance disclosures, as an input into its thinking. DEQ also sees a focus on impediments to recycling such adhesives, labels, and additives as promising. Accompanying ORS Conditionally Language could be moderately strengthened to descriptive text 459A.884( explain how various design decisions aim to explaining how the 4) & ORS continually reduce impacts. For example, CAA could algorithm will deliver 459A.875( elaborate on bonus magnitude, materials in the SKU continual reductions in 2)(a)(F) to which bonuses are to be applied, and which other the environmental and producers will fund which bonuses. human health impacts of covered products DEQ understands, based on its own research, that the act of voluntary evaluation and disclosure correlates to impact reduction action. Therefore, CAA does not 54 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) need to further describe this dynamic at the macro level. a description of the ORS Consideration of Other Yes DEQ concurs with CAA’s description at pg 153-155 factors taken into 459A.875( Ecomodulation Factors, of how the two proposed bonuses take into account all consideration in 2)(a)(F) pg 153-155 five statutory factors. development of the and ORS approach, and how their 459A.884( incorporation contributes 4)(a)-(e) to continual incentivization and disincentivizing of producer choices that actually correlate to meaningful environmental benefit. The following five factors must have been considered according to statute: The post-consumer Post-Consumer Content Yes content of the of the Material, pg 153- material, if the use of 154 post-consumer content in the covered product is not prohibited by federal law The product-to- Product-to-Package Ratio, Yes package ratio pg 154 The producer’s Producer’s Choice of Yes choice of material; Material, pg 154 Life cycle Life Cycle Environmental Yes environmental Impacts, pg 154 impacts, as demonstrated by an evaluation performed in accordance with ORS 459A.944; and 55 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) The recycling rate of The recycling rate of the Yes the material relative material relative to the to the recycling rate recycling rate of other of other covered covered materials, pg 155 products. a description of how the ORS Funding the Bonuses, pg No DEQ recommends that CAA add supporting PRO will maintain 459A.875( 152-153 rationales explaining why the proposed approach is financial solvency 2)(a)(E) best for delivering continual incentivization of impact (specifically, how loss of reduction, while also respecting the principle that revenue due to cross-subsidization be limited in fee-setting. ecomodulation rewards CAA proposes to draw the funds for paying out both will be paid for). bonuses from producers within the material categories that a producer is receiving the bonus for. Effectively, these other producers in those categories will be paying more, through their material-specific contributions to the ecomodulation reserves, in order for the producer that has voluntarily evaluated and disclosed impacts to receive a fee reduction. Alternative membership fee ORS Alternative Membership n/a CAA did not to propose an alternative membership structure proposal (if 459A.875( Fee Structure (if fee structure. applicable): Per ORS 2)(a)(E) Applicable), pg 156 459A.884(5), the PRO could and ORS propose an alternative fee 459A.884( structure that does not adhere 5) to the requirements of ORS 459A.884(2)-(4) but still delivers cost-proportional product differentiation and incentivizes less impactful producer behavior. A proposal of an alternative membership fee structure could explain How it will ensure that ORS products don’t cross- 459A.884( subsidize each other. 5) How it will incentivize ORS less impactful producer 459A.884( behavior. 5) 56 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) How it will not n/a incentivize non- recyclable materials, which DEQ views as an undesirable outcome (although an alternative membership fee structure would not be strictly held to charging more on average for non- recyclables than for recyclables, i.e., the requirement imposed by ORS 459A.884(3)). Inclusion in the fees approach ORS Flat Fees, pg 143-144 Conditionally CAA has addressed all conditions of approval from of uniform membership fees 459A.884( Draft 1 by adding two additional tiers to the flat fee for members that had a gross 6) schedule for producers with revenue of less than $10 revenue of less than $10 million but more than 5 tons of supply, and by adding million for the organization’s an option for a producer that qualifies for flat fees to most recent fiscal year, or not report (they would need to pay the fees for the sold in or into Oregon less highest tier in the flat fee schedule). than five metric tons of covered products for use in Approval is conditional because CAA will likely need this state in the most recent to update the fee amounts in Draft 3 to reflect updated calendar year. program cost projections. Adequacy of financing: this ORS Adequacy of Financing, No See comments below. subsection could contain: 459A.875( pg 114 demonstration that the 2)(i) No The program plan demonstrated how the fee schedule membership fees is envisioned to cover all costs, but CAA will update collected will provide its system cost estimates and fee amounts. adequate revenue to fund all costs associated with the producer responsibility program. A fee schedule that does not appear to generate sufficient revenue, meaning that program delivery would depend upon funding from other 57 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) sources, could be cause for plan rejection. Included in this subsection could be: a description of the ORS Program Reserves and Conditionally CAA has addressed DEQ’s concerns from the Draft 1 prospective PRO’s 459A.875( Contingencies, pg 157- review by describing contingencies that the program approach to reserve 2)(m 158 reserves are intended to address, and by explaining funds or other why the reserve amount is set equal to six months of contingencies for variable costs without factoring fixed costs into the responding to equation. DEQ is satisfied with these explanations. financial hardship. For example, a Approval is conditional upon updates to this section prospective PRO that are envisioned for Draft 3 (on pg 158, CAA notes could set a minimum potential for updating the reserve amount and rate of and a maximum accumulation in Draft 3). reserve budget, defined as a proportion of the annual operating budget. Itemized system costs for n/a Appendix E, Itemized n/a Provided as ranges. 2025, 2026, and 2027 (for Budgets by Program later years, may be appropriate Year, pg E35-E39 to collapse the itemization or provide ranges), including: Total amount to be spent OAR 340- No Provided as a range in Draft 1, updated figure on recycling system 090- expected in Draft 3. expansion. 0790(2)(b ) Amounts to be spent on OAR 340- No Expected in Draft 3. recycling system expansion 090- per individual local 0790(1)(e) government. Itemized system costs incurred n/a n/a Lumped with 2025. before the start date. Administration and operations n/a n/a Provided as a range. costs of the PRO (aggregated). 58 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Forecasted reserve level ORS Yes Provided as a range. amount. 459A.875( 2)(m) Estimated revenues, including: n/a n/a Start-up funding; n/a n/a Not provided, assumed that it will be recouped by member fees in 2025. Member fees; n/a n/a Provided for 16 material categories as a range. Value of print and online n/a n/a Not provided but not required. advertising expected from newspaper and magazine On pg 141 CAA indicates that it will provide more publishers in lieu of clarity in Draft 3 as to whether or not newspaper and membership fees; and magazine publishers that provide in-kind advertising at a value commensurate with their fee amount will need to pay a portion of base fees to cover administrative costs. DEQ welcomes this. Other revenue n/a n/a None cited. Cost of independent financial n/a n/a Not broken out as a separate budget category but audits presumed included in the PRO management and admin budget(?) 17. Plans to advance equity in OAR 340- Equity, pg 159-162 No Ten subcomponents throughout the plan marked by recycling 090- asterisks count toward the Equity component, in 0640(1)(a) addition to the components under which they are (C) nested. Four of these are addressing statutory or rule OAR 340- requirements that must be met before the Equity 090- section can be approved. Of these four, one is 0640(2)(h adequately addressed in Draft 2 (the requirement to ) provide culturally-responsive education materials), OAR 340- one is conditionally addressed (the requirement to 090- collaborate with tribal depots if possible to collect the 0640(6)(c) PRO Recycling Acceptance list), and two pertaining (B) to collection of the PRO Recycling Acceptance list ORS are not yet adequately addressed (the requirement to 459A.893( provide enhanced convenience to underserved 3) populations, and the requirement to uphold equity in alternative compliance proposals. As equity is a priority for the State of Oregon, DEQ encourages CAA to go beyond the four requirements and address the guidance elements and relevant 59 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) ORSAC feedback as well, if feasible, and sees considerable progress in this direction in Draft 2. See details in individual responses to individual subcomponents. 18. Management and Management and No See recommendations specific to particular Compliance Compliance, pg 163-182 subcomponents below. In order to achieve approval for this section, in Draft 3 CAA should add: • detail regarding reporting of producer noncompliance to DEQ – namely, what is the time frame beyond which DEQ is notified of producer noncompliance, and what is envisioned with respect to compliance reporting processes and protocols for large producer mandatory disclosures?, and • a full description of the dispute resolution process including a process timeline. Description of the program’s n/a Overall Day-to-Day n/a Provided on pg 163. overall day-to-day Management, pg 163 management, including management of contracts, record keeping, reporting, and compliance oversight of service providers. Statement or commitment that n/a n/a Provided on pg 163. the program will be managed to ensure program compliance with all relevant and applicable state and federal laws and regulations. Names and contact n/a n/a Provided on pg 163. information for key personnel responsible for running various aspects of the program could be provided, including the authorized representative. Description of how the PRO ORS Communications, pg 164- Yes CAA described a thorough approach for will communicate and 459A.875( 171 communicating with key interested parties, updated coordinate with the 2)(d), with more detailed information on resources available department, the Oregon to producers. 60 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Recycling System Advisory Council, local governments, local governments’ service providers, processors and any other producer responsibility organizations. A description of the n/a Other PROs and Multi- n/a CAA included a short section on this at pg 171. In the prospective PRO’s approach to PRO Coordination, pg absence of multiple prospective PROs, no further the long-term coordination 171 information is desired at this time. process, including plans for ensuring that a coordination plan includes all required components under OAR 340- 090-0680(2)(b). A description of the n/a n/a prospective PRO’s vision for how long-term coordination will ensure that PROs’ collective obligations under provisions ORS 459A.860 to 459A.975 are met, including plans for coordination on specific elements listed under OAR 340-090-0680(2)(c). Description of the process for ORS Managing Compliance, Conditionally On pg 176 it is stated that, after a time frame to be OBI sought more promptly notifying the 459A.875( pg 175-177 specified in the Membership Rules passes, CAA will information on CAA’s department, the Oregon 2)(l) notify DEQ of non-compliance by a former or current approach to producer Recycling System Advisory producer member that pertains to payment of fees or non-compliance. Council and producers of reporting of data. potential noncompliance with Specify the time frame and reference the relevant the requirements of ORS membership rules. 459A.860 to 459A.975 by a producer or producer DEQ appreciates that CAA will, as noted on pg 177, responsibility organization. inform DEQ of producers that may be obligated and have not joined CAA. DEQ also appreciates CAA’s description regarding non-compliance with respect to the large producer disclosure requirement as noted on pg 177. More detail is needed here to assess whether the 61 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) requirement is met – what are the specific compliance reporting processes and protocols that CAA is proposing? This process could n/a n/a This particular example of a local government encompass plans to issue refusing to implement system expansion was not notifications regarding addressed in the plan. potential noncompliance by other actors that the PRO could be aware of— for example, a local government’s refusal to accept funding and implement system expansion needed to comply with the Opportunity to Recycle Act, per OAR 340-090- 0630(4)(f). Description of a process, ORS Dispute Resolution (Local No CAA acknowledged on pg 178 that the current ORSAC sought more including the process 459A.875( Governments and version does not address this requirement adequately. details on procedure timeline, for how the 2)(e) CRPFs), pg 178 Consider presenting the information in two and process for the producer responsibility subsections: dispute resolution organization will resolve any OAR 340- 1. the ground rules for dispute resolution that have mechanism. disputes involving 090- been worked out through the ORSOP process thus far compensation of local 0640(1)(b (for example, some principles for what are and are not ORSAC sought more governments and local )(D) eligible costs, and details on the role of the governments’ service 2. Procedural and process details for the mechanism, working group. providers under ORS including the timeline for how a dispute resolution 459A.890; disputes involving process would occur. commingled recycling processing facilities under ORS 459A.920 and 459A.923; and disputes involving contracting with existing depots under ORS 459A.896(a). Policies, procedures, and n/a n/a Page 179, Paragraph 2 referenced state-specific practices for ensuring: policies, procedures and practices. 62 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Safety and security of staff, n/a General Policies, n/a A commitment to implement standards pertaining to contractors, and members Procedures, and Practices, workplace safety appeared on pg 179. of the public. pg 179-180 Compliance by staff and n/a n/a A commitment to comply with all applicable laws contractors with all relevant pertaining to workplace safety appeared on pg 179. As state and federal laws and pertains to collection for the PRO list materials, CAA rules; may wish to expand this commitment toward compliance with land use provisions, environmental laws and labor laws. Successful and timely n/a n/a On pg 180 CAA indicated consideration of how to delivery of project ensure successful and timely delivery of outcomes by outcomes by contractors contract. Protection of confidential n/a n/a On pg 179-180 CAA pledged to adopt an information information; security plan for protecting against problems with confidential info. Retention of information n/a n/a Per pg 180 CAA will designate a records custodian required for annual reports charged with ensuring records are kept for at least five submitted under ORS years (pursuant to ORS 459A.962) and would be 459A.878 available to DEQ for inspection upon request. CAA has provided further clarity in Draft 2 as to how and where documents are to be stored. Maintenance of records n/a • Compliance Process, pg n/a See pg 176 -- with respect to producer compliance, necessary to demonstrate 176 CAA will require its producer members to retain compliance. • Retention of records to substantiate and verify the accuracy of the Information, pg 180 info submitted in their reports for a to-be-determined period of time, and records will be subject to inspection by CAA. Any internal requirements n/a Equity in PRO n/a A relevant subsection on pg 162 lays out principles around engagement of Administration, pg 162 for upholding equity in administration of the program, “Certified Firms” when including through development of an approach that contracting work out to third provides opportunities to COBID businesses, parties (“Certified Firm” provision of equal opportunities for system expansion means a small business and depot collection, equitable employment practices, certified under ORS 200.055 and prioritizing Oregon-based individuals when by the Oregon Certification hiring. Office for Business Inclusion and Diversity (COBID) as a minority-owned business, 63 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) woman-owned business, DEQ still considers that more information on how business that service-disabled COBID businesses will be engaged could make this veterans own, or emerging subsection more effective. small business).* Description of the closure plan ORS Closure Plan, pg 183-184 Yes In Draft 2, CAA provided additional information to to settle the affairs of the 459A.875( substantiate its assumption that its proposed six- PRO if it needs to close, 2)(m) month reserve will be ample for fully resolving all ensuring that producers will CAA obligations related to a potential closure of its continue to meet their program—namely, the reserve amount proposed is in obligations during the the range of reserve amounts successfully used in dissolution process and various stewardship programs in Ontario. including a protocol for notifying the department, the While it would be more convincing to cite an Oregon Recycling System insurance policy or other financial mechanism that Advisory Council and local backs up the intent of the reserve fund, and/or to governments of the provide example scenarios of closure at different dissolution. This section times and how the reserve funds would be adequate could include: for covering outstanding obligations, DEQ finds the existing plan contents to be acceptable. A description of how the ORS No reference to an insurance policy or other such closure plan will ensure 459A.875( financial mechanism was provided to back up the that there are sufficient 2)(n) stated intent to be able to fund obligations during reserve funds to satisfy all closure. obligations until such DEQ has financial assurance mechanisms for landfills time as producer members in rule at OAR 340-094-0145(6), which CAA could have joined a different review to understand what DEQ would consider to be producer responsibility a reliable financial assurance mechanism. organization. To enable this outcome, the plan may include elements such as proof of a closure insurance policy, retention of auxiliary staff through a closure process, and the timing and approach for notification of the public. Other plan subcomponents: Inclusion of a certification n/a Certification and n/a The certification and attestation were included in the and attestation section Attestation, pg 186-187 plan. 64 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) including contact information, EIN, proof of nonprofit status, and the following signed, certifying statement: “I/We hereby declare under penalty of false swearing (Oregon Revised Statute 162.075 and ORS 162.085) that the above information and all of the statements, documents and attachments submitted with this plan are true and correct.” Inclusion of a definitions n/a Appendix A, Definitions, n/a A definitions section was included in the plan. ORSAC recommended section. pg A2-A8 DEQ recommends adding a definition of “equity” to a definition of “equity” this section. A definition of “equity” that CAA will be be added to the plan. using is referenced on pg 159, but not spelled out. Inclusion of an n/a Appendix M, Preliminary n/a Readibility is still a challenge with this section – the implementation timeline Program Implementation font appears on the screen pixelated. Timelines, pg M77-113 + On the Draft 1 program plan, DEQ evaluated comments received from 19 entities through the ORSAC review and public comment process. On the Draft 2 program plan, DEQ evaluated comments received from 27 entities through the ORSAC review and public comment process. DEQ notes in the column “Parties That Submitted Similar or Relevant Feedback” the subset of approximately 78 suggestions from these groups that overlap with DEQ recommendations and are outstanding. Thirty-seven of these comments were made on Draft 2, and 41 of these are Draft 1 comments pertaining to sections of the plan that were not revised in Draft 2 and for which the Draft 1 feedback is therefore still outstanding. Key of organizations with outstanding recommendations that overlap with DEQ’s recommendations: 1. AF&PA – American Forest and Paper Association 2. AHAM – Association of Home Appliance Manufacturers 3. APR – Association of Plastic Recyclers 4. BAN – Basel Action Network 5. City of Portland (Draft 1 submission) 6. City of Portland and cosigners – City of Portland, Metro, City of Beaverton, City of Eugene, City of Gresham, City of Hillsboro, City of Lake Oswego, City of Troutdale, Clackamas County, Lane County, Multnomah County, Washington County, Bring Recycling (Draft 2 submission) 7. CMI – Can Manufacturers Institute 8. FPI – Foodservice Packaging Institute 9. GPI – Glass Packaging Institute 10. HCPA – Household & Commercial Products Association 65 11. Metro – Metro (Metropolitan Planning Organization for the Portland region) (Draft 1 submission) 12. OBI – Oregon Business & Industry 13. ORRA – Oregon Refuse and Recycling Association 14. ORSAC – Oregon Recycling System Advisory Council 15. OWA-OWC-WI – Oregon Winegrowers Association, Oregon Wine Council, and Wine Institute 16. Paktech 17. Ridwell 66, and CAA’s second planO regon Recycling Modernization Act Producer Responsibility Organization Program Plan Application Form 2 025-2027 Program Plan Period Prospective PRO contact information Name of organization: Circular Action Alliance Address: 20 F Street NW, Suite 700 Phone: 1 2 72 Washington, D.C. 20001 Website: .circularaction.org Authorized representative: e Fiel o Title: Chie ecuti e icer Address of authorized representative (if different from above): n a Email of authorized representative: in o circularaction.org Prospective PRO qualifications Is the organization a 501(c)3 nonprofit legally operating in Oregon? Yes No Corroborating documents appended (check all that have been provided): The organization’s articles of incorporation 501(c)3 letter of determination Proof of registration with the Oregon Department of Justice as a charitable organization Proof of registration with the Oregon Secretary of State as a foreign corporation operating in Oregon (if applicable) Are the organization’s producer members likely to comprise at least 10% of Oregon’s market share? Yes No Indicate corroborating information provided: Has the payment of the program plan review fee been remitted to the department? Yes No Program information Program name: Oregon Program Plan Date of submission: Se te er 27, 202 ecuti e ummar e attac e Circular Action Alliance CAA Oregon Program Plan Second Draft Submission i u mitte in accor ance t e re uirement or ro ucer re on i ilit organi ation un er O A e lan e cri e o CAA ill ul ill t e o ligation o a ro ucer re on i ilit organi ation un er Oregon ec cling o erni ation Act A or t e erio rom ul to ecem er i the su itte lan is a ro e t e e artment o n ironmental ualit e lan e cri e CAA a roac to im lementing A re uirement inclu ing t e ro i ion o un ing u ort or ot local go ernment an rec cling artici ant or rec cling acti itie an tem im ro ement t e creation o a net or or t e collection o P O acce tance li t material en uring collecte material are rec cle re on i l an e ucation an outreac acti itie to communicate rec cling c ange an o ortunitie to Oregonian PRO Program Plan Application: 2025-2027 Program Plan Period Page 1 Certification and Attestation I/we hereby declare under penalty of false swearing (Oregon Revised Statute 162.075 and ORS 162.085) that the above information and all the statements, documents and attachments submitted with this plan are true and correct. Signed: Printed name: e Fiel o Date: Se te er 27, 202 Page 2 Oregon Program Plan (2025 – 2027) circularactionalliance.org Table of Contents Executive Summary .................................................................................... 5 Goals of the Program ................................................................................................... 5 Operations Plan ......................................................................................................... 7 Financing Strategy ...................................................................................................... 8 Equity .................................................................................................................... 10 Management and Compliance ....................................................................................... 10 At the Center of the Transformation ............................................................................... 12 Goals of the Program .................................................................................. 13 About Circular Action Alliance ...................................................................... 18 Description of the Organization ..................................................................................... 18 CAA’s Qualifications to Serve as a PRO in Oregon ............................................................... 19 Understanding of Oregon’s Recycling Modernization Act ...................................................... 19 Team Expertise and Capabilities .................................................................................... 20 Qualifications to Deliver Interim Coordination Tasks ............................................................ 21 CAA’s Producer Membership ........................................................................................ 22 Operations Plan ........................................................................................ 24 a. Collection and Recycling of USCL Materials .......................................................... 24 i. System Expansions and Improvements .......................................................................... 25 ii. Transportation Reimbursements ................................................................................. 32 iii. Additional Reimbursement and Funding for Local Governments ........................................... 38 iv. Start-Up Approach for Time-Sensitive Tasks.................................................................. 41 b. The PRO Recycling Acceptance List ................................................................... 43 i. Proposed Approach to Achieving Convenience Standards................................................... 43 ii. Proposed Approach to Addressing Performance Standards ................................................ 51 iii. Start-Up Approach for Establishing the Depot Collection System ......................................... 58 iv. Proposed Depot Collection Targets ............................................................................. 60 c. Materials Strategy .......................................................................................... 66 i. Proposed Additions to the USCL .................................................................................. 67 ii. Proposed Future Additions to the USCL through Forthcoming Program Plan Amendments ........... 69 iii. Specifically Identified Materials on the USCL .................................................................. 73 iv. Specifically Identified Materials on the PRO Recycling Acceptance List .................................. 76 v. Variance Requests .................................................................................................. 80 2 circularactionalliance.org vii. Initial Plastic Recycling Rate Projections ....................................................................... 83 viii. Ensuring Responsible End Markets ............................................................................. 86 ix. Upholding Oregon’s Materials Management Hierarchy ..................................................... 115 d. Education and Outreach ................................................................................ 117 i. Goals for Education and Outreach .............................................................................. 117 ii. CAA’s Education and Outreach Plan ........................................................................... 118 iii. A Description of the Statewide Promotional Campaign .................................................... 125 iv. A Culturally Responsive Approach............................................................................. 128 v. Schedule Including Proposed Timings for Start-Up Approach ............................................ 131 vi. Relevant experience ............................................................................................. 136 Financing ............................................................................................... 137 a. Membership Fee Structure and Base Fee Rates ................................................... 137 i. Reporting Categories (Product Speciation for the Fee Structure) ......................................... 137 ii. Development of the Base Fee Algorithm ...................................................................... 139 iii. Interim Base Fee Schedule Ranges ............................................................................ 142 iv. Producer Fee Incentives, Other Than Graduated Fee Adjustments ...................................... 144 v. Meeting the Statutory Requirement ........................................................................... 144 b. Graduated Fee Algorithm and Methods ............................................................. 147 i. The Algorithm and Accompanying Descriptive Text for the Proposed Graduated Fee Structure ... 147 c. Alternative membership fee structure (if applicable) ........................................... 156 d. Adequacy of Financing .................................................................................. 157 Equity ................................................................................................... 159 CAA’s Proposed Approach to Equity ............................................................................. 159 CAA Management and Compliance .............................................................. 163 a. Overall Day-to-Day Management .................................................................... 163 b. Communications ......................................................................................... 164 CAA Plans for Communication and Coordination .............................................................. 164 c. Reporting ................................................................................................... 172 Metrics and Data Collection ....................................................................................... 172 Producer Reporting .................................................................................................. 172 Annual Reporting ..................................................................................................... 172 d. Managing Compliance ................................................................................... 175 e. Dispute Resolution (Local Governments and CRPFs) ............................................. 178 3 circularactionalliance.org f. General Policies, Procedures, and Practices ........................................................ 179 i. Management of Contracts ....................................................................................... 179 ii. Workplace Safety and Conduct ................................................................................ 179 iii. Protection of Confidential Information ........................................................................ 179 iv. Successful and Timely Delivery ................................................................................ 180 v. Retention of Information ......................................................................................... 180 g. Closure Plan ................................................................................................ 181 Certification and Attestation ..................................................................... 183 a. Contents .................................................................................................... 183 i. Contact Information ............................................................................................... 183 ii. The Prospective PRO’s Employer Identification Number ................................................... 183 iii. Proof of the Prospective PRO’s Status as a Nonprofit ...................................................... 183 iv. Certifying Statement ............................................................................................. 184 Appendices ............................................................................................ 185 4 circularactionalliance.org Executive Summary Oregon’s Plastic Pollution and Recycling Modernization Act (RMA) creates important changes in how materials management is undertaken and funded within the state. The legislation strives to improve the overall effectiveness of Oregon’s recycling collection and processing ecosystem through a shared responsibility model. A key element of this new framework is the role of a producer responsibility organization (PRO), the entity through which producers of covered materials will fund recycling services, support innovation and manage collection of certain materials through a depot system. Circular Action Alliance (CAA) has developed a detailed approach to managing and administering an extended producer responsibility (EPR) program to fulfill key obligations of the RMA. Our team includes a wide range of recycling industry and policy experts with extensive knowledge in program plan development, implementation, operations, education and outreach, and local government structure. CAA has engaged with the broader stakeholder community in Oregon and referenced a wide range of applicable studies to formulate strategies and cost estimates tailored to Oregon’s unique and dynamic materials recovery landscape. CAA has taken DEQ’s Internal Management Directive (IMD) on the RMA PRO Program Plans as a basis for the structure of this submission. Some adaptations have been made to the proposed IMD outline to improve narrative flow. The table of contents, charts, and subheadings in the document will help readers effectively navigate all the plan’s content, and brief overviews of core sections are provided below. Goals of the Program CAA’s overarching objective is to support the successful implementation of the RMA in collaboration with DEQ and all other key stakeholders. Through the implementation of this program plan, CAA intends to achieve four overarching goals: 1. Reduce the negative environmental, social, and health impacts from the production and end-of- life management of printed paper, food serviceware and packaging as measured in the Life Cycle Evaluation (LCE) assessment. 2. Increase the diversion of recyclable materials from disposal. 3. Improve public participation, understanding and equity in the state’s recycling system. 4. Create a system that fulfills the needs and regulatory requirements of the PRO, its members, and all other relevant stakeholders. 5 circularactionalliance.org These goals are defined in further detail in the Goals of the Program section, along with key objectives, metrics and measures to help chart progress and determine success. 6 circularactionalliance.org Operations Plan The operations plan segment delves into the specific steps and strategies that CAA will employ to meet RMA requirements and help catalyze a range of recycling system expansions and improvements that can lead to a stronger, more efficient framework of materials management. This includes detailed plans and recommendations for:  Collection and Recycling of UCSL Materials – A plan for the collection, transport, and recycling of all covered materials on the RMA’s Uniform Statewide Collection List (USCL) and a framework for deploying funding to support these activities. Highlights include: o The Oregon Recycling System Optimization Project (ORSOP), an important project that will offer a more complete picture of system needs, opportunities for efficiency, and more. This initiative will provide additional data and details required to more precisely estimate and schedule the distribution of funding for system improvements; o Key tasks to support the distribution of funding and reimbursements to eligible parties that must be completed in advance of July 1, 2025 (the RMA implementation date), in addition to the ORSOP:  Negotiating with and then providing associated compensation (with a single accounting point-of-contact system) to local governments for service expansion;  Setting up a single accounting point-of-contact system for compensation of local governments for expenses besides service expansion;  Setting up a single accounting point-of-contact system for payment of contamination management fees and processor commodity risk fees to commingled recycling processing facilities.  The PRO Recycling Acceptance List – This section outlines activities, timelines, and recommendations for increasing diversion of materials named on the PRO Recycling Acceptance List, including proposed approaches to meeting service convenience and performance standards and proposed collection targets for each material category. Highlights include: o Identification of 173 existing permitted depot sites that meet the state convenience standard, and another 285 to serve as substitutes if any existing facilities choose to not participate as a PRO collection point; o Key activities to ensure timely provision of depot services that must be completed in advance of the July 1, 2025 RMA implementation date:  Perform additional analysis of needs and further design of PRO depot system in consultation with DEQ, potential partner depots, local governments, and service providers;  Finalize contracts with local governments, service providers, and end markets and launch reporting and accounting systems while onboarding key stakeholders; 7 circularactionalliance.org  Open the first phase of PRO acceptance list collection points.  Materials Management – Key materials management considerations including strategies for Specifically Identified Materials (SIMs) and engagement with and verification of responsible end markets (REMs). Highlights include: o A proposal to expand the USCL to include transparent blue and green PET bottles, as well as signaling of CAA’s intent to submit proposals to expand the USCL to include PET thermoforms and spiral wound containers; o A proposal to explore commingled, trial collection of polycoated paper packaging and single- use cups with the intent to better understand generator behaviors and other system barriers to the inclusion of these materials on the USCL; o Insight into the program plan’s anticipated impact on plastic recycling and an estimate of Oregon’s current plastic recycling rate; o A strategy to create a materials tracking system that supports REM verification for all system participants and proposed approach to supporting REM development. o Key activities to support effective materials management and REMs that must be completed in advance of the July 1, 2025, RMA implementation date.  Education and Outreach – A vision for delivering effective and harmonized education in a manner that incorporates feedback from, and supports, local government outreach and is responsive to diverse audiences across this state. Highlights include: o Goals to ensure widespread recycling awareness through culturally responsive support and messaging that has been proven to effectively drive increased participation and capture of recyclables, deployed in a manner complementary to programmatic efforts to reduce contamination; o Recommendation for a Spanish language outreach campaign developed independently of the English language campaign; o Key activities to support the education and outreach plan that must be completed in advance of the July 1, 2025, RMA implementation date. Financing Strategy An essential role of the PRO is developing a comprehensive methodology for determining how much funding obligated producers of covered materials are required to contribute to the statewide system. Factors such as material type, volume of product sold into state, environmental impact of materials and commodity revenues must be properly accounted for when designing and implementing fair and effective producer fees. 8 circularactionalliance.org The financing section of the program plan lays out the guiding principles CAA has developed and used as the basis of the base fee methodology to set interim base fees. This section also describes how the fee outcomes from using this fee algorithm satisfy the RMA statutory requirements and fulfill the adequacy of financing requirement. CAA introduces a graduated fee algorithm to provide producers with practical and measurable criteria upon which to qualify for fee incentives. In advance of the completion of ORSOP, a preliminary estimate of the Year 1 program budget range is provided in Appendix E. This sum, to be covered by producer fees, accounts for management costs of materials, service expansion costs, PRO depot system development, as well as costs to develop and sustain viable responsible end markets and other contributions to advance program improvement initiatives. CAA expects the program costs to be refined for the next iteration of the Program Plan. 9 circularactionalliance.org Equity There is no one-size-fits-all solution to recycling because motivators and barriers vary. For this reason, CAA has embedded principles of equity into the program plan in a manner that upholds and reinforces the goals set out in the RMA. These principles are integrated into each key component of PRO administration and program implementation. This proposal describes how CAA has built equity into the proposed approaches for key activities, including:  The establishment of a PRO depot network  The development of responsible end markets  Development and deployment of recycling education and outreach efforts  PRO administration CAA consulted with an Oregon community-based organization (CBO) to develop the equity components of this plan and will continue to consult with this and other CBOs. CAA recognizes the importance of fostering relationships with Oregon CBOs to effectively address program equity issues. In short, the program plan outlines strategies to use this transformational moment in Oregon’s materials management as a springboard to greater equity in various areas. CAA views equity work as a journey and will continue to improve and expand upon engagement with all populations within Oregon through the course of the first program plan and future program plan periods. Management and Compliance As an organization helping to introduce a new approach to recycling funding and management in the U.S., CAA recognizes the importance of stakeholder communication as the RMA moves toward implementation. As such, this program plan offers a detailed explanation on CAA’s structure of day-to-day management, as well as a communications strategy for maintaining strong connections with government entities and other stakeholders. Furthermore, CAA has outlined data collection steps and metrics considerations to effectively track program successes and areas in need of improvement. The elements of an optimized annual report are also explained. Finally, this section of the plan lays out an in-depth process for tracking and maintaining producer compliance, setting clear standards and expectations on rules, audits, and action to take place when companies are found to be in noncompliance. This information is supplemented by important details on contract management, recordkeeping and other best practices around organizational and program governance. 10 circularactionalliance.org It is through these clear processes that CAA has confidence in its ability to meet the expectations of regulators, drive overall program efficiency, and maintain strong coordination both internally as an organization and externally with partners across the public and private sectors. 11 circularactionalliance.org At the Center of the Transformation The ultimate goal of RMA implementation is a transformed system of materials usage and recovery that will be responsive to the needs of all stakeholders and that will lead to significant environmental and social benefits for Oregonians. CAA has invested significant resources in developing this program plan and is committed to working with recycling stakeholders to deliver on the RMA objectives. There is no doubt that effectively and efficiently transitioning to a shared responsibility model of materials management and delivering on other RMA priorities will be a complicated and challenging effort and one in which producers and other stakeholders will learn much along the way. But CAA is confident the transition can and will happen successfully. Data-driven decision-making, combined with a spirit of collaboration and communication, will be critical in the quest to see the RMA realize its full potential. CAA has embedded those core principles in all segments of this plan. The group is excited at the prospect of helping Oregon usher in system shifts that help reduce costs, drive more material into an expanded recycling marketplace, and open the door to a better materials management future. 12 circularactionalliance.org Goals of the Program The overarching goal of Circular Action Alliance (CAA) for this initial program plan period is to support the successful implementation of the Recycling Modernization Act (RMA) in collaboration with the Oregon Department of Environmental Quality (DEQ) and all key stakeholders, including local governments, commingled recycling processing facilities (CRPFs), haulers, and Oregon waste generators. The goals put forth in this initial program plan are based largely upon the pillars of measuring, reporting and responsive targets, and are supported by clear objectives spelled out in the tables below. CAA developed these high- level goals with continual improvement in mind, allowing for further articulation in subsequent plans. We believe it is appropriate to frame the goals for this program plan in terms of processes and decision-making methodologies, to show how CAA will continually evaluate the processes in place and ensure that goals are neither stagnant nor overly prescriptive at such a fluid point in time. We believe it is important to understand the landscape of markets, resident and commercial engagement in the recycling system, and to ensure funding is in place, before then understanding what is achievable and what are the best practices for measuring what success looks like. To that end, success will center on four critical high-level goals: Goal 1: Reduce the negative environmental, social, and health impacts from the production and end-of-life management of paper, food serviceware and packaging, as measured in the Life Cycle Evaluation (LCE) assessment. Program Objectives Outcomes/Indications of Success Key Metrics Ensure that materials  Environmental and other impacts, as  Percentage of recycled material going collected and measured by LCE, monitored and to REMs, including SIMs. processed for reduced through ecomodulated fee  Number, kind, and specific REMs used recycling in Oregon incentives. by CRPFs and CAA for depot material. are consistently  Number of REM non-conformance  System of identifying responsible end delivered to issues identified, corrected and brought markets (REMs) and tracking material responsible end into conformance. flows established with full cooperation markets. from commingled recycling processing  Summary of REM verification facility (CRPFs) and other key undertaken. stakeholders.  Percentage of chain of custody anomalies detected during quarterly  CRPF and depot material streams reporting review process. directed to REMs.  Number of challenges identified by end markets and assistance deployed to  System established to continually work through those problems. monitor REM non-conformance and to address and correct issues that arise regarding REMs. 13 circularactionalliance.org  Specifically identified materials (SIMs) directed to REMs, where practicable.  Common performance areas for end markets tracked and analyzed for potential structural issues. Design and implement  Initial base fee schedule adequately  Base fees in the 60 Reporting and Fee producer fee supports RMA verification of REM Categories for covered materials structures that requirements and other system reflecting their individual features as provide adequate improvements. directed by the RMA. financing for RMA  Data on producer changes to packaging  Ecomodulation factors integrated into materials and formats that reflect obligations and producer fee following development of effects of base fees (and at a later date, incentivize producers datasets and feedback mechanisms as applicable, graduated fees). to improve required to adjust fees for greater environmental impact reduction.  Number and types of specific outcomes associated environmental impacts reduced  Environmental and other impacts through ecomodulated fee incentives. with the production monitored and reduced through and recycling of ecomodulated fees.  Number and types of adjustments printed paper, food made to ecomodulated fees to produce  System in place to evaluate the serviceware and stronger impacts. effectiveness of ecomodulation and to packaging supplied to make changes as needed to improve the Oregon market. results. Goal 2: Increase the diversion of recyclable materials from disposal. Program Objective Outcomes/Indications of Success Key Metrics Create new and  PRO-assigned depot system  PRO material collection and recycling expanded established, meeting convenience rates in relation to plan targets. standards and providing recycling opportunities for more opportunities for materials assigned for  Number and types of local government Oregon waste depot collection and impact on service expansions funded, and number generators to recycle material recycling rates. and types of new collection a wider array of  opportunities created for waste Local government service expansion generated materials, generators. requests evaluated and funded including supporting according to prioritization guidelines  Consumer awareness and use of PRO enhancement of local resulting in new collection material depots. collection services opportunities created for waste and establishing generators.  Diversion rates associated with USCL materials. convenient depots for  Uniform Statewide Collection List additional material (USCL) applied across the state to  Extent of new SIMs collection efforts collection. expand what is collected in established. commingled recycling, and steps taken  Tons of plastic materials sent to by CAA to successfully add materials to responsible end markets divided into the USCL. 14 circularactionalliance.org  SIMs collection issues successfully tons of covered plastic materials addressed. generated.  Progress toward 2028 plastic recycling  Extent of covered costs funded within goals at the end of each program year. 30 months of program implementation.  All eligible costs funded within 30 months of program implementation. Facilitate the  Processor commodity risk fee (PCRF)  Funding provided to CRPFs through the modernization of and contamination management fee PCRF and CMF, with associated tonnage Oregon’s commingled (CMF) payment system established to and funding amounts. material processing provide necessary funding to CRPFs.  Capture rate and bale quality data from infrastructure, driving  CRPFs meeting DEQ’s performance DEQ and from CAA. more efficient capture standards regarding capture rates and  Individual CRPF capacity to accept and and delivery of high- bale quality. effectively sort USCL materials. quality materials to  Investments made in new equipment end markets while and sorting processes to reducing loss of accommodate the USCL and additions materials to residue. to the USCL. Goal 3: Improve public participation, understanding and equity in the state’s recycling system. Program Objectives Outcomes/Indications of Success Key Metrics Ensure Oregon waste  Increase in the amount of USCL and  Tons of material collected through generators, reflecting depot materials collected, indexed commingled, depot, and other the states’ many against population and generation. applicable programs, indexed against diverse communities,  population and generation metrics. Reduction in the amount of are fully informed contaminant materials entering the  Amount and percentage of about their recycling recycling collection stream in contaminants in collected streams and opportunities and how commingled recycling and at depots. in streams entering CRPFs. to use those  Increase in waste generator  Measures of waste generator opportunities understanding and confidence in the awareness, knowledge, and confidence optimally, confidently, recycling system across all populations. in recycling (for example, participation and correctly. rates) through surveys or other data collection. Incorporate principles  Equitable recycling opportunities  Number and kinds of recycling services of equity into the provided for populations that may find provided for populations with access or deployment of it difficult to access service at mobility issues. recycling collection points.  Number of local governments and CBOs opportunities,  Process established to consult with regularly consulted to provide recycling education, and other local governments and community opportunities to communities which elements of the groups to ensure any proposals for the have been historically underserved. recycling system. alternate delivery of recycling convenience standards address 15 circularactionalliance.org equitable access for communities and  Number and kinds of recycling diverse populations. opportunities addressing gaps identified by local governments and  Educational materials that are clear and community groups. demonstrably understandable are universally distributed or made  Number and kinds of new educational available. materials created and distributed, numbers and kinds of communication  Selected businesses and depot channels used, and number and kinds collection partners represent diverse of audiences reached. communities, including Certification Office for Business Inclusion and  Number and types of system Diversity (COBID) business expansions within the first program plan partnerships. period.  Groups representing diverse  Number and types of adjustments populations within Oregon have made to grow system expansion that consistent opportunities to interact address previously underserved or and provide input on equity concerns. unaddressed engagement. 16 circularactionalliance.org Goal 4: Create a system that fulfills the needs and regulatory requirements of the PRO, its members, and all other relevant stakeholders. Program Objectives Outcomes/Indications of Success Key Metrics Manage organizational  Systems and mechanisms in place to  Number, kind, and operational operations to ensure fulfill CAA PRO obligations under the status of systems and compliance with all RMA regarding day-to-day mechanisms for CAA statutory requirements. management, policies and procedures, management obligations. communication, membership, timelines,  Number and nature of gaps or and budgets. issues that needed to be  Mechanisms in place to address gaps, addressed and resolution status shortfalls, or other issues regarding of those gaps/issues. CAA’s PRO obligations.  Producer compliance activity reports. Provide an effective  Application, reporting, invoicing, and  Number and kind of platforms in platform of support and informational platforms established that place for stakeholder interaction. interaction with local are clear, effective, and efficient for  Extent of platform use (number governments, commingled stakeholders to use. of users, etc.). recycling processing  Mechanisms in place to use stakeholder  Number and kind of issues with facilities, and haulers that feedback for improving platforms. platforms expressed through allow them to steadily  Dispute resolution process developed stakeholder feedback and any improve their programs that allows for arbitration within related adjustments made to and facilities to meet committee under the Oregon Board. platforms. regulatory targets and the  Development of dispute goals of the RMA. resolution process. The following program plan details the integrated steps CAA will take to produce results that meet the goals and objectives outlined above. In putting this plan into action, CAA will prioritize clear and consistent engagement with all stakeholders and will adopt an approach of continual improvement, recognizing the dynamic and complex nature of the Oregon materials management system. 17 circularactionalliance.org About Circular Action Alliance This section of the plan provides summary information about Circular Action Alliance, including details of its structure, governance and members, as well as its qualifications to serve as a PRO in Oregon. Description of the Organization Circular Action Alliance (CAA) is a U.S., nonprofit producer responsibility organization (PRO) established to support the implementation of extended producer responsibility (EPR) laws for paper, packaging, and food service ware. The organization was founded by leading U.S. producers representing retail, food, beverage, and consumer packaged goods manufacturing. CAA’s 20 Founding Members are Amazon; The Clorox Company; The Coca-Cola Company; Colgate- Palmolive; Danone North America; Ferrero US; General Mills; Keurig Dr Pepper; Kraft Heinz; L’Oréal USA; Mars Incorporated; Mondelez International; Nestlé USA; Niagara Bottling, LLC; PepsiCo, Inc.; Procter & Gamble; SC Johnson; Target; Unilever United States; and Walmart. Together, CAA’s membership represents more than 900 brands sold in the U.S., representing a wide variety of covered material types. CAA was incorporated as a nonprofit corporation on December 21, 2022, and is recognized by the Internal Revenue Service as exempt from taxation under Section 501(c)(3) of the Internal Revenue Code. The organization’s mission is to provide producers with consistent EPR services across multiple states while developing and implementing EPR programs that:  Meet state-specific regulatory requirements  Leverage existing recycling systems and infrastructure  Advance the circularity of covered materials on a national scale through collaboration with local governments, service providers, and recycling system stakeholders CAA’s National Board of Directors is made up of 20 voting representatives of Founding Member companies, which represent a diversity of covered material supplied to the Oregon market. Each Founding Member has the right to appoint one representative to serve as a Director on CAA’s National Board of Directors. The CAA National Board of Directors has established the following committees and has the ability to create additional committees or dissolve committees in the future:  Governance Committee – consisting of at least three members appointed by the Board of Directors who have relevant experience and expertise in governance, membership development, and compliance. 18 circularactionalliance.org  Finance, Audit and Investment Committee – consisting of at least three members appointed by the Board of Directors who have relevant experience, expertise, and knowledge in accounting, auditing, investments, budgeting, cash flow management, reserve management, and financial risk management.  Human Resources Committee – consisting of at least three members, appointed by the Board of Directors, who have relevant experience, expertise, and knowledge in human resources, employment law, organizational development, and/or diversity, equity, and inclusion. The CAA National Board of Directors intends to establish a designated governing body known as the Oregon Board, which will have the delegated authority to act on behalf of the National Board of Directors to approve the producer responsibility plan and the budget for implementation of the plan, as well as oversee the implementation of the approved producer responsibility plan under the RMA. The Oregon Board will include Founding Member representatives, other producer representatives, and non-voting members. CAA will provide additional details on the Oregon Board in the third program plan. Additionally, CAA has engaged a third-party organization to provide support in the development of the Oregon governance model. This organization is conducting a comprehensive review of CAA’s governance. CAA’s Qualifications to Serve as a PRO in Oregon CAA was established to support the implementation of EPR laws for paper, packaging, and food service ware and is fully capable of meeting the PRO statutory requirements under the RMA. The organization has the expertise and vision to collaboratively build a producer responsibility plan that will achieve the objectives of the RMA. CAA’s progress to date includes the following:  On May 1, 2023, CAA became the first PRO approved to administer an EPR program for paper, packaging and food service ware in the U.S., being appointed by the Colorado Department of Public Health and Environment (CDPHE) as the single PRO responsible for implementing Colorado’s Producer Responsibility Program for Statewide Recycling Act.  On October 18, 2023, CAA was approved as the single PRO to represent the interests of producers in Maryland. As the Maryland PRO, CAA will have a seat on the Producer Responsibility Advisory Council, which will make recommendations to the Maryland governor on how to effectively establish and implement a producer responsibility program for packaging materials.  On January 5, 2024, CAA was approved as the single PRO to deliver the objectives of the California Plastic Pollution Prevention and Packaging Producer Responsibility Act (California Public Resources Code Sections 42040 to 42084). As they have in these other EPR states, CAA members have invested time and resources to ensure the organization can fulfill the specific PRO obligations in relation to the RMA in Oregon. Understanding of Oregon’s Recycling Modernization Act 19 circularactionalliance.org CAA has a strong and detailed understanding of the RMA. Following its incorporation, CAA was engaged in the Phase I rulemaking process (and subsequently the Rulemaking Advisory Committee), which included the submission of comments in July 2023. CAA has also participated in DEQ Technical Working Groups and has pursued independent and extensive engagement with Oregon DEQ and other Oregon stakeholders and groups, including: Oregon Refuse & Recycling Association (ORRA), local governments and service providers, and the Association of Oregon Recyclers (AOR). Full details on CAA’s stakeholder engagement during the development of this program plan can be found in Appendix D. As a result of this engagement, CAA understands not only the requirements of the statute and rules, but also the priorities of key stakeholder groups that are essential to the success of the RMA. Team Expertise and Capabilities CAA Founding Members are united in their vision to create a circular economy for paper, packaging, and food service ware in the United States. CAA’s Founding Members have experience with the implementation of various EPR programs, and they have assembled a team of staff and independent service providers drawn from across North America with expertise in developing and operating EPR programs to respond to state- specific regulatory requirements and recycling system needs. CAA team members have participated in EPR implementation and program operation for many years, playing integral roles in the creation, operation, and improvement of PROs. The team has expertise in regulatory compliance, project management, governance, recycling systems and materials management, system improvement, end markets, finance, fee setting, eco-modulation, packaging design, not-for-profit operation, information technology, reporting, consumer education, producer and stakeholder relations, and public affairs. The Oregon team is led by an Executive Director who is responsible for building the local organization and implementation team. CAA is hiring full-time staff members based in Oregon and will continue to add Oregon-based staff to the team over time. Currently these Oregon-based staff members include the following positions:  Oregon Executive Director  Oregon Project Manager  Oregon USCL Recycling Manager  Oregon Depot Manager  Oregon Communications Manager  Oregon Audit Director  Oregon Reporting Director CAA’s organization charts are included in Appendix C. 20 circularactionalliance.org Qualifications to Deliver Interim Coordination Tasks CAA is well-qualified to deliver the start-up tasks (previously referred to as interim coordination tasks) required to launch the program successfully on July 1, 2025, as required by state statute. In particular, the CAA team is preparing to launch the following workstreams: Local Government and Service Provider Engagement (Oregon Recycling System Optimization Project) This workstream is planned for April 2024 onward. The goal is to liaise further with local governments and their service providers on expansion needs, to finalize plans for expansions to be funded in the first program plan, and to conduct consultations on other relevant aspects of the plan. CAA has assembled a team of experts to undertake this work, building from the initial discussions with a selection of local governments outlined in Appendix D that have taken place since September 2023. The team has experience relevant to Oregon’s regulatory requirements, recycling system design, and Oregon’s local government ecosystem. More information on plans for this workstream can be found in the Operations Plan section of this plan, under “Collection and Recycling of USCL Materials.” 21 circularactionalliance.org PRO Depot Development (Oregon Recycling System Optimization Project) This workstream is planned for April 2024 onward. The goal is to liaise further with existing drop-off facilities and depot locations, as well as new potential partners to finalize a network of PRO depot locations (supplemented by events and other collection services) to meet the necessary collection targets, convenience and performance standards, and Responsible End Market (REM) requirements under the RMA. CAA has assembled a team of experts to undertake this work, building from the initial discussions with depot organizations outlined in Appendix D. More information on plans for this workstream can be found in the Operations Plan section of this plan, under “The PRO Recycling Acceptance List.” Education and Outreach This workstream is planned for April 2024 and onward. The goal is to develop education and outreach collateral and a statewide promotional campaign to communicate the USCL and PRO Recycling Acceptance List to residents and commercial entities in Oregon. The workstream includes consultations with local stakeholders, including but not limited to DEQ, the Oregon Recycling System Advisory Council (ORSAC), Oregon residents (in a range of geographies and housing situations), Oregon businesses, local governments, service providers, and community-based organizations (CBOs). CAA has assembled a team of experts to undertake this work. The team has experience in Oregon regulatory requirements, waste generator behavior trends, education materials development and delivery, Oregon-focused media executions, and Oregon local government engagement. More information on plans for this workstream can be found in the Operations Plan section of this plan, under “Education and Outreach.” CAA’s Producer Membership CAA membership exceeds the 10% market share threshold for covered materials in Oregon required for approved PROs. Based on available data, CAA estimates that the current updated membership (as of August 2024) accounts for at least 40% of the state’s market share of covered materials. (Details of how the market share estimate was calculated can be found in Appendix B.) CAA is also conducting information sessions with hundreds of non-member producers regarding EPR obligations in Oregon and other states and will expand membership further through 2024 and into 2025, in advance of the program start date. CAA is resourced to complete all the tasks necessary to start the program, including all of the interim coordination (start-up) tasks referenced in the RMA rules. CAA Oregon will be a subsidiary of the national organization that is supported by its founding members. These members have made significant funding commitments to support the CAA program plan development in Oregon and other EPR states. 22 circularactionalliance.org 23 circularactionalliance.org Operations Plan The operations plan section of this program plan describes activities and recommendations for increasing the diversion of recyclable materials from disposal to support progress toward targets outlined in the Recycling Modernization Act (RMA). Important areas of Producer Responsibility Organization (PRO) involvement around operations include meeting local government needs assessment requests, establishing collection depots, improving materials processing, and conducting robust and consistent education. a. Collection and Recycling of USCL Materials In this subsection, CAA details how it plans to support the collection and recycling of covered materials that are included on the Uniform Statewide Collection List (USCL). Under ORS 459A.890, local governments and their service providers are entitled to be reimbursed or be provided advance funding for, as appropriate, eligible expenses in several RMA program areas, including but not limited to: system expansions and improvements (costs associated with the expansion and provision of recycling collection services); the transportation of covered materials over 50 miles; contamination reduction programming and periodic contamination evaluations outside of comingled recycling processing facilities (CRPFs); and ensuring 10% post-consumer content in roll carts. The collection and recycling section of the program plan addresses each of these areas in turn, and it also discusses CAA’s start-up approach to address specific time sensitive tasks (previously interim coordination tasks). Following the submission of this initial draft of the program plan, CAA will conduct further outreach and consultation with local governments and service providers to:  Undertake the Oregon Recycling System Optimization Project (more details are provided below)  Enable the development of more accurate local government funding estimates and prioritization of disbursements which cannot currently be done due to limited available information.  Develop a schedule for the disbursement of funding for local government service expansion requests as per RMA requirements  Finalize the details of how various funding programs related to USCL materials will be administered Administrative design principles have been developed to inform further consultation as detailed below. Administrative Design Principles  Streamlined and expeditious processes for the disbursement of eligible expenses 24 circularactionalliance.org  Clear and accessible claims submission instructions and mechanisms (reliance on online submissions where possible)  Transparent information requirements all parties should utilize understandable similar source data in support of funding requests  Standardized review criteria in support of prioritization and assessment of eligibility of claims (see proposed review criteria below)  Coordination of funding program processes with local government budget cycles wherever possible  Streamlined dispute resolution processes  Appropriate accountability mechanisms to track reimbursements and any advance funding provided For each compensation program, CAA proposes to post related policy documents, standardized registration forms, claims submissions and other program documents on its stakeholder portal, for ease of access. These programs would also be supported by CAA program staff dedicated to answering questions and guiding stakeholders through program administrative processes. i. System Expansions and Improvements Providing financial and other assistance to local governments that need to expand recycling collection services is a critical step in the implementation of this program plan and the execution of the RMA. The activities outlined below will help meet a range of objectives and goals, including expanding overall opportunities to recycle, and help meet the plastics recycling goal set out in the RMA. Proposal for an Oregon Recycling System Optimization Project 2023 Department of Environmental Quality (DEQ) Needs Assessment Findings Oregon DEQ released its initial RMA Local Government Needs Assessment in May 2023. While completing the needs assessment survey was voluntary for local governments, eligibility for expansion funding from the PRO(s) in the first program plan is contingent on completion of the needs assessment. Two hundred forty-five local governments responded to the needs assessment survey (200 cities, 36 counties, and nine additional county responses) with 92.2% of respondents indicating an interest in expanding recycling services. To support program plan development, CAA consulted with a select number of local government representatives (see Appendix D for more details) to gather more information about initial needs assessment requests and develop a better understanding of existing recycling infrastructure in those jurisdictions. 25 circularactionalliance.org This consultation process highlighted the different wasteshed infrastructure across the state, including a wide range of different local government and service provider roles and responsibilities and variations in such recycling activities such as contamination reduction activities, material flows, and current education and outreach efforts. This process underscored the need for a second more detailed needs assessment process and continued outreach to local governments to further develop the necessary components for RMA implementation. The first needs assessment simply identified areas of potential interest in terms of service expansion. Local governments checked general areas of interest to maintain eligibility for funding under the process, which may in some cases have resulted in an inaccurate picture of needs in relation to existing recycling services. Information provided by local governments was insufficient to prioritize funding requests in relation to RMA rule criteria (which had not been finalized at the time of the needs assessment survey). As anticipated in DEQ’s Internal Management Directive (IMD) related to the program plan submission, CAA is proposing to conduct a follow up on DEQ's 2023 Needs Assessment by conducting an Oregon Recycling System Optimization Project (ORSOP) between April and August 2024 to gather information necessary to further develop its estimates of required local government funding for recycling system expansions and improvements and refine the schedule for processing funding requests in accordance with RMA rule prioritization criteria. Proposed Approach Given the interrelationship between local government needs assessment requests and other areas of the program plan pursuant to the RMA, CAA is proposing an integrated approach to the ORSOP. CAA will coordinate the outreach activities required to develop more accurate estimates of service program expansion requests (ORSOP) with continued program development of other local government compensation funding programs. CAA proposes the following approach for engaging local governments and their service providers in the ORSOP: 1. Follow up outreach to all 2023 Needs Assessment respondents (details pending) 2. Engagement between CAA and local governments and service providers based on wastesheds (with additional engagement as required for specific geographic areas). Consultation focuses on: a. Understanding the unique conditions that may exist in each jurisdiction (i.e. local government service provider franchise arrangements, nature of existing recycling services provided, etc.) b. Consulting with local governments and service providers on the reimbursement process, review criteria and administrative process that will be established to finalize and rollout service expansion system funding c. Confirm which permitted facilities and existing local government facilities would like to participate in the PRO depot network 26 circularactionalliance.org d. Coordinate needs assessment requests in the context of other local government compensation programs such as transportation reimbursement (see relevant section below). e. Identify primary contacts for each local government and service provider f. Review anticipated processes for disbursement of education and outreach materials and the provision of funding for contamination reduction activities The ORSOP will enable the development of a schedule, prioritization, and cost estimates of local government service expansion requests, as well as refined estimates of costs associated with reimbursements in other program areas. General Process and Timelines for Prioritizing and Processing Service Expansion Requests Proposed Timeline Under the RMA, producers are not obligated to become members of a PRO until the program starts on July 1, 2025. Given the anticipated cost of local government infrastructure service expansions, CAA will not be in a position to fund service expansion requests until it is generating revenue from obligated producers. Actual local government service expansion disbursements, therefore, are anticipated to begin after the July 1, 2025, program start date, with CAA prioritizing funding requests in accordance with RMA rule priorities. The general steps and timeframe associated with implementation of this service expansion funding program is below. (This timeline can also be reviewed in Appendix M, Preliminary Program Implementation Timeline.)  CAA Conducts ORSOP (April – August 2024)  CAA Program Plan is updated based on the ORSOP (September 2024). Updates will include: o A more detailed schedule for implementing collection program expansion disbursements o Revised estimates of local government expansion disbursements o A formalized Administrative Process for Review and Approval of Expansion Disbursements. o Prioritization of expansion disbursement requests o Development of a 2025-2027 Schedule for Processing Expansion Disbursement Requests  CAA Program Plan Approved (November/December 2024)  CAA-Local government processing of 2025 Expansion Funding Requests (begins Spring 2025) o Detailed CAA – local government negotiations o Identification of individual local government/service provider funding amounts  Disbursement of 2025 Expansion Funding Requests (July – December 2025) 27 circularactionalliance.org  CAA-Local government processing of 2026 Expansion Funding Requests (begins Fall 2025) o Detailed CAA – local government negotiations o Identification of individual local government/service provider funding amounts  Disbursement of 2026 Expansion Funding Requests (January – December 2026)  CAA-Local government processing of 2027 Expansion Funding Requests (begins Fall 2026)  Detailed CAA – local government negotiations o Identification of individual local government/service provider funding amounts  Disbursement of 2027 Expansion Funding Requests (January – December 2027) Initial Outline for Disbursement of Local Government System Expansions Preliminary Estimated Funding for Local Government System Expansion 2025 $54 Million to $70 Million 2026 $143 Million to $186 Million 2027 $159 Million to $207 Million Total Program Plan Funding $356 Million to $463 Million Table 1 Actual funding amounts for local government service expansion initiatives will be determined on a case-by- case basis subject to RMA eligibility requirements as per a schedule for disbursements included in future program plan amendments. For more information related to how CAA developed initial estimates see Appendix E. Revised Local Government Funding Schedule Following the ORSOP, CAA’s revised program plan will include a more detailed schedule for processing the disbursement of system expansion funding requests. Where appropriate, CAA will schedule the funding of local government system expansion on a geographic basis so that infrastructure improvements can be coordinated and support broader system efficiencies. The proposed draft disbursement schedule to be included in the revised program plan could follow a format like the following: 28 circularactionalliance.org Target Date for Target Date for Local Type of Funding Reason for Processing System Funding Government Request Prioritization Funding Request Disbursement LG X On-route Expansion Required by OTR September 2025 December 2025 LG Y Depot Population under 4,000 Oct 2025 Jan 2026 Table 2 CAA will consult with local governments to review optimal timing of funding disbursals to align with local government budget policies. Where prioritized local governments are not ready to process their funding requests in accordance with the proposed Revised Program Plan funding schedule, CAA will work with those local governments to process service expansion requests as soon as that local government is ready to engage in the processing exercise necessary to determine final disbursement amounts. Assessing Priority of Funding Requests All PRO funding for expansions and provision of recycling services from July 2025 through to December 2027 will be prioritized following RMA rule guidelines: 1. Local governments that are not, or will not be, able to provide the opportunity to recycle 2. Existing recycling depots to provide for the collection of any materials that were formerly collected on-route by the local government or a local government’s service provider, as needed to ensure continuation of recycling opportunities 3. Existing recycling depots to provide for the collection of any materials that are not currently or were not formerly collected on-route by the local government or local government’s service provider 4. Local governments with populations less than 4,000, according to the Portland State University Population Research Center’s most recent Population Estimate Report, or such other estimate approved by the Department 5. Local governments of any size that are looking to add new on-route or recycling depot service 6. All other local governments that are looking to expand existing on-route collection, recycling depots or both, in order of ascending population Where local government requests fall into multiple RMA rule prioritization categories, CAA will attempt to identify and sequence in accordance with the most applicable rule criteria. As noted earlier, CAA will also attempt to assess local government requests on a geographic or wasteshed basis to improve system efficiencies. Additional criteria that CAA proposes to employ for evaluation are described below. 29 circularactionalliance.org Evaluation of Funding Requests CAA will use a standardized information-gathering mechanism to gather needed specifics for assessing and meeting funding requests and to be able to gauge the requests against these evaluation criteria. This information may include: 1. Name of the project 2. Detailed description of the project 3. Financial request with detailed list of items to be acquired 4. Timeline for the project and funds to be disbursed 5. Who will be overseeing and undertaking the project 6. What is the projected impact on the intent of the RMA 7. Is the project consistent with industry best practices/guidelines 8. Will the project meet the performance standards outlined in RMA rules Proposed Review Criteria While RMA rules provide guidance on how to prioritize local government eligible funding requests, there are several references in the RMA related to potential service expansion requests where further clarifications will be required to determine whether a particular local government service expansion request is eligible for funding under the statute. For example, service expansion requests related to expanded on-route collection services and the addition of recycling reload facilities indicate that the recycling reload facility is an eligible expense if necessary. RMA rule requirements also indicate that PRO funding for additional recycling depots is in relation to “as needed to provide convenient recycling opportunities.” See OAR 340-090-0800(1)(A)(C). In the absence of additional review criteria, to address how RMA terms such as “if necessary” or “as needed” should be interpreted, CAA is proposing program review criteria to clarify how needs assessment funding requests will be assessed. Such criteria will also support other RMA requirements related to the verification of funding amounts anticipated under the statute. As part of the ORSOP, CAA will consult with local governments regarding funding eligibility protocols and the proposed needs assessment review criteria outlined below: 1. Support for Existing Services and Infrastructure Local governments and service providers have invested heavily in recycling infrastructure over decades to deliver recycling services in conjunction with the delivery of other solid waste services that form the greater solid waste management system. Where needed, improvements and additions will be considered, but existing infrastructure should remain the foundation for services. Where consistent with other rule and funding assessment criteria, funding requests should support and utilize existing recycling infrastructure. 30 circularactionalliance.org 2. Consistent with RMA Objectives Funding requests must be qualified expenses under the statute, that are consistent with RMA objectives to minimize the environmental impacts of producer packaging. Regarding local government infrastructure, requests should efficiently support improved environmental outcomes related to both local government recycling and statewide packaging objectives. 3. Driving Efficiency and Effectiveness Funding requests should improve current system efficiency and support cost-effective diversion. The funding should be used both to improve the performance of existing recycling programs (e.g., increasing the recovery of materials that are currently recycled) and add new materials in a cost-effective manner. Investments should create new capacity that meets the newly anticipated volumes of recyclables under the RMA. Efficiency measurements (e.g., a “net cost per ton” diverted) may be developed for considering applications for funding. It is recognized that any new tons added into the recycling system will likely increase the total and net system costs. 4. Balancing Local Government and Statewide Needs Local government funding requests should integrate well with statewide infrastructure. A balance is required between funding to support State-wide system benefits and funding for local/regional funding needs and opportunities. 5. No Cross Subsidization or Duplication of Funding There should be no cross subsidization between local government needs assessment funding and non-RMA solid waste program funding. Funding provided by CAA for recycling programs will be dedicated to eligible recycling programs only. Funding requests should also not duplicate funding provided through other RMA programs. 6. Accuracy and Transparency Funding requests must be based on accurate and transparent information. CAA will work in good faith with local governments and their services providers to document required information associated with various types of system expansion service requests. (i.e., required information in relation to a request for expanded on-route collection). Dispute Settlement Process relating to Service Expansion Funding Requests Given the language of the RMA, there may be disagreements between CAA and local governments and their service providers about the eligibility for certain types of funding requests. These disagreements may be more complex than typical contractual disputes (which often involve disputes over the interpretation of 31 circularactionalliance.org contractual clauses) as they will likely involve different legal interpretations of what reimbursement the statute requires and what qualifies as an eligible cost. CAA proposes to utilize the ORSOP to identify and catalog the types of costs associated with the expansion and provision of recycling collection service for covered materials. CAA would propose to convene a working group comprised of representatives from CAA, local government, and DEQ to attempt to mediate disagreements over service funding requests between the approval of the second program plan and the start of the program plan on July 1, 2025. This process will hopefully minimize potential disagreements between CAA and local governments prior to the processing of individual local government service expansion requests once the program begins on July 1, 2025. In addition to resolving or narrowing potential dispute issues, the working group could also align on the details of the dispute settlement process to be utilized once more detailed CAA local governments negotiations related to service expansion requests are undertaken. Accountability Mechanisms Funding provided to local governments will need to be accompanied by accountability mechanisms to ensure that PRO funding provided to local governments is allocated to its intended RMA purpose. In many cases, this may include advance funding for capital items such as trucks or other capital items. As part of the ORSOP, CAA will consult with local governments regarding the accountability reporting and conditions associated with the provision of funding in relation to service expansion requests and different types of eligible funding categories. The details of proposed accountability processes will be provided in the revised second draft of the program plan, anticipated in September 2024. ii. Transportation Reimbursements Under the RMA, the PRO is required to fund local government or their service provider costs of transporting covered materials from a recycling depot or recycling reload facility to a CRPF, processor, or responsible end market (REM). DEQ rules establish methods for determining funding and reimbursement amounts which may include payments based on zones. The rules require that:  Costs must be based on the actual costs of managing and transporting covered materials that must be shipped more than 50 miles  50-mile distance is the shortest driving distance to: o the nearest CRPF with capacity to process the material, if the material is commingled o the nearest processing or sorting facility that will prepare it for market or REM, if the material is collected separately (e.g., glass) or is not fully commingled o the nearest REM if the material is collected separately and in condition to be sent to an REM 32 circularactionalliance.org  Costs to receive, consolidate, load and transport covered materials include but are not limited to purchasing and maintaining equipment, signage (not already covered under RMA provisions), administrative costs including related staffing costs  Transportation costs of covered materials directly from a generator to a CRPF or REM are not eligible  In 2027, the PRO must also conduct a transportation study  The PRO program plan must include methods for calculating transportation costs  Payment methods may include rate schedules or zonal maps with periodic adjustments for fuel prices or other variable factors o Consultation with local governments and service providers required on payment methods o Methods must include a voluntary option where PRO and local government/service provider may agree to transfer some or all transportation responsibilities to PRO Consultation Process During the program plan development process, CAA consulted with a select number of local government service providers on the design of the program for administering transportation disbursements under the RMA. These service providers are all likely claimants for transportation reimbursement under the RMA and were selected in consultation with ORRA, which represents haulers and other recycling businesses throughout the state. The purpose of this pre-program plan consultation was to identify elements that need to be included in this funding program and outline a general approach to administration. As with other RMA funding programs, CAA’s intention is to seek feedback from affected parties throughout the state to support development of this RMA compensation program. Given this requires outreach to the same parties involved in the ORSOP, CAA will coordinate consultation related to the development of this funding program in tandem. The proposed transportation reimbursement model, which CAA will seek feedback on in conjunction with the Oregon Recycling System Optimization Project, is described below. Following further consultation and outreach CAA would finalize transportation reimbursement policies and required forms and documents. These policy documents would be available online, and CAA would propose to conduct webinars and stakeholder outreach prior to program plan implementation to explain the claims submission process before the program start date. CAA would begin processing claims from eligible funding recipients for any qualifying shipments made after the start of the program on July 1, 2025. Proposed Methods for Calculating Transportation Costs General Model 33 circularactionalliance.org CAA will calculate disbursements based on standardized rates per mile from eligible outbound facilities to the nearest CRPF with capacity or end market, with some adjustment for loading and preparation of outbound loads:  A standardized rate per ton per mile, with different rates for different types of loads, would be utilized to calculate the transportation reimbursement compensation for different facilities  The standard per mile rate would be used to calculate set transportation reimbursements for each eligible outbound facility based on the application of the standard rate to the distance between eligible facilities and the nearest processing facility or end market  Reimbursement rates would include a process to address fluctuations in fuel prices Local governments can assign transportation eligibility funding rights to service providers, and eligible transporters would register with CAA and enter into a transportation claims agreement. Functioning through an online portal, eligible applicants would confirm eligibility for reimbursement for individual shipments with CAA prior to the shipment taking place. CAA would confirm their shipment request and notify the receiving CRPF of the delivery. Once received the CRPF will confirm the load was accepted and input final weights. Once that is complete, reimbursement would be disbursed to the party initiating the shipment request. The program would include a dispute settlement process with specified timelines for contested claims. Although funding requests from service providers for facility upgrades and capital costs associated with preparation of materials (excluding costs covered under expansion of services funding to local governments) may coincide with requests for transportation cost reimbursement, CAA recommends managing funding requests for capital items (e.g. depot signage, compaction equipment, etc.) separately from transportation claims. Registration of Claimants A process must be established for local governments to identify the recycling depots, recycling facilities and haulers eligible for transportation reimbursements in their jurisdictions. At the time of this submission, DEQ informed CAA that it was consulting with local governments on an authorization or designation process for local governments to utilize with respect to all RMA local government compensation programs. Eligible recipients of transportation funding, which could include both local governments and service providers, would enter into a transportation claims agreement with CAA prior to receiving transportation reimbursements:  This agreement would include terms of payments including indemnification clauses that clarify each party’s liabilities and obligations with respect to transportation of RMA materials including situations where a funding recipient was utilizing a third party to transport covered materials  CAA intends to consult with service providers and local governments on the content of a draft transportation claims agreement template 34 circularactionalliance.org CAA will facilitate the registration process and completion of transportation reimbursement claims agreements in time to enable implementation by July 1, 2025. Establishing Standard Rates  CAA will develop a draft recycling depot and recycling reload facility list for review by local governments and service providers  A facility receiving rate of inbound shipments that need to be scaled, received, consolidated, stored, and reloaded and all the associated administration and reporting would be paid a standard fee per ton managed  A transportation reimbursement rate for outbound shipments from each facility would be calculated based on a standard per mile rate applied to the eligible distance and recorded weight received at the CRPF  Process for calculation of transportation rates for each facility would be reviewed including: o The categories of shipments that would be subject to different standard transportation rates (i.e. material type, destination)  Calculation of facility rates reflecting the shipping distance from each eligible facility to the nearest processing facility with capacity or nearest end market based on the standard rate per mile  Proposed rates will be set on a per ton of eligible covered material basis  Payment process would include determining rates for mixed loads Timing of Submissions and Reimbursements CAA will develop an online portal to process submissions of claims. Claims processing will reflect the steps outlined below: 1. Eligible recipients would provide CAA notice of shipment through standard form via an online process 2. CAA would pre-approve eligible shipments (within specified time frames) 3. A Bill of Lading (BOL) would be released to relevant parties 4. Final weights of transported materials would be reconciled by CRPFs and other receiving facilities 5. Payment is released As per RMA rule requirements, CAA would notify local governments of all payments made to authorized service providers under this program. Claims Submission Content 35 circularactionalliance.org During the next phase of consultation, CAA proposes to review a draft claims submission template in consultation with local governments and service providers. Operational information collected via claims submissions could include:  Confirmation of shipment eligibility (i.e. local government expense for transportation of covered materials)  Location of recycling depot or recycling reload facility (origin)  Date of load pick up at recycling depot or recycling reload facility  Location of delivery location: CRPF, processor, or REM (destination)  Date of delivery to CRPF, processor, or REM  Confirmation of delivery by authorized CRPF, processor, or REM representative  Identification of covered material load type: o Comingled material, specific material, if appropriate o Baled material vs. compaction vs. uncompacted material  If applicable, percentage of load associated with eligible covered materials  Outbound, inbound weights - confirmation of outbound and inbound weights from outbound and inbound facilities Timing of Payments CAA proposes that service providers confirm eligibility of shipments and submit claims on a delivery-by- delivery basis. CAA would consult on proposed timelines for payment of claims and the processes for verifying, approving and adjusting claims. CAA would also consult on proposed deadlines for the submission of transportation claims and adjustments to transportation claims. Dispute Settlement Process As noted above, CAA is proposing a pre-submission claims review process to minimize disputes about whether a particular claim for funding is eligible. In cases where a submitted transportation claim is not considered eligible by CAA, that transportation request will not be approved, and the BOL generation process will not be initiated. If a load is approved for transportation and is rejected upon receipt at the CRPF due to contamination, the transporter shall incur the cost of the transport, removal, and disposal of the material and that load will not be eligible for transportation reimbursement. CAA will develop a dispute settlement process for claims where a service provider and CAA disagree on eligibility for a claimed cost or the amount of the transportation cost reimbursement. Details would be included in a Service Provider/CAA transportation agreement, with the potential for arbitration by a third party agreed to by both parties. Affected local governments will be notified when a dispute settlement process has been initiated. 36 circularactionalliance.org Percentage of covered material in commingled loads  Under RMA rules – initially PROs will use data from the 2023 Oregon Solid Waste Characterization and Composition Study to determine the portion of recyclable material that is not covered material in commingled loads  CAA will propose a standard percentage for use in all rate sheet calculations  If a local government, service provider, or PRO in a particular county believes that the local commingled stream has a significantly different proportion of covered material (in comparison to the statewide average), it can conduct a study in consultation with the affected parties to determine the proportion of covered material in the local commingled stream  In 2027 the PRO is obligated to conduct a study to determine the proportion of covered material in commingled loads: o CAA will consult with stakeholders on the appropriate methodology associated to be used in this study and the revised program plan will include an outline of the proposed approach and timing of initiative Voluntary Transportation Option As per RMA rules, CAA would develop an option where CAA would assume responsibility for transporting covered materials from a local government’s recycling depot or recycling reload facilities to the nearest facility if the local government and CAA agree to such an approach. This would be implemented through a CAA/local government agreement which would describe service details. CAA will consult with service providers on the details of the transportation funding program to determine their level of interest in the voluntary interest option. Opportunities for Efficiency and Effectiveness Wasteshed-Level Management The management of materials at the wasteshed level offers a number of advantages from an administrative, planning, operational, and financial perspective. It is important to manage all the materials at the wasteshed level. The materials can be planned, administered, received, consolidated, prepared for shipment, and loaded in each wasteshed. In some cases, neighboring wastesheds may find it beneficial to work together to benefit from economies of scale and avoid unnecessary duplication of services. CAA will explore options to coordinate transportation of materials on a wasteshed basis during consultation on the details of the transportation funding program. Material Compaction 37 circularactionalliance.org The movement of materials must be minimized where possible. One of the most effective ways to minimize the movement of materials is by maximizing load capacities thus reducing the overall number of loads needed, however, this must not be done at the risk of compromising the recyclability and recovery of the materials by CRPFs. While baling is an effective way to maximize capacity, it has negative impacts on the recovery yield of the materials. Shipping loose materials is the least effective way of shipping materials resulting in the most loads to be managed. The most effective way is to compact the material into closed top walking floor trailers, maximizing the volume capacity without affecting the integrity of the material to be sorted. This will lower freight costs and increase recovery at the CRPF while reducing residue rates. CAA will consult with local governments and their service providers regarding efficient transportation options. The rate sheet will likely, pending the results of consultation, distinguish between different types of loads to encourage transportation efficiencies. iii. Additional Reimbursement and Funding for Local Governments Contamination Reduction Programming The RMA requires DEQ to establish and maintain list of approved contamination reduction program elements, including:  Customer-facing materials, methods responsive to diverse populations  Standards for providing feedback to generators that contribute to contamination  Standards for service or financial consequences to generators that are repeated sources of contamination Local governments must implement programs to reduce contamination that include program elements identified by DEQ, or materials or methods that are as effective, and must include a process to review and revise as local elements once every five years. Local governments are only obligated to participate to the extent program funding is provided by a PRO. PRO contamination reduction funding is capped at $3 per capita per year. RMA rules related to contamination reduction funding will be finalized as part of the RMA’s Phase II rulemaking process with a review and approval by the Environmental Quality Commission anticipated in November 2024. CAA has conducted some preliminary outreach with local governments related to this program, but as in other program areas, further consultation is required to develop the details of how this program will be administered. 38 circularactionalliance.org As with other reimbursement programs, local governments may designate service providers as eligible recipients for program funding. Local governments may also assign other local governments as funding recipients (i.e. a city may choose to designate a county as the funding recipient). Given that PRO program funding is capped at $3 per capita, the assignment or designation process related to this program requires local governments to assign or designate portions of funding in situations where it may be assigning funding to multiple service providers. The per capita cap also requires the determination of funding years for which to calculate the cap, and the population period on which the per capita cap was calculated so that in any given funding year, local governments are working from the same population estimates. CAA proposes the following general approach to disbursing funding for contamination reduction programming:  The funding year for disbursements would be based on the municipal calendar year (e.g. July 1, 2025 to June 30, 2026)  Prior to the start of each funding year CAA would calculate the eligible cap for Oregon local governments for the upcoming year based on the most recent estimate of Oregon population available from the Portland State University Population Research Center as per RMA rules 340-090-0810 (2) (timing to be determined) and provide to local governments and DEQ (potentially post on its website)  Prior to the start of each funding year, local governments would through the Opportunity to Recycle (OTR) process assign funding eligibility identifying the portion of funding available to recipients in cases where the local government was assigning eligibility to multiple recipients  CAA would encourage local governments and eligible service providers to submit contamination reduction funding budgets, identifying what the CRF will be utilized for, to CAA for pre-approval prior to the start of each program year – this process would expedite the processing of payments later in the year  Where recipients want advance funding for contamination reduction programs, they would submit a budget for eligible items to CAA prior to the start of the program year (timing to be determined)  Recipients that are provided advanced funding in relation to the contamination program would need to monitor spending and provide CAA with updates confirming advance funds were utilized for eligible contamination reduction program elements (timing to be determined)  In the event that recipients of advance funding related to the contamination reduction program had not spent the advance funding by the end of the funding year, they would be required to return unspent advance funding amounts to CAA (timing to be determined) Ensuring 10% Post-Consumer Content in Roll Carts Many manufacturers of roll carts currently offer 10% or more post-consumer content in new containers. To get the post-consumer material needed, manufacturers need access to residentially sourced resin and there 39 circularactionalliance.org has been concern in the past about an adequate supply of this material. Some manufacturers may indicate that, depending on the size of the container and the weight of the resin used the purchaser, there may be the need for a small premium for a 10% cart during procurement. However, some cart manufacturers are already able to provide 10% post-consumer content at the same price and same warranty terms as 100 percent virgin resin carts. CAA proposes to work closely with local governments and haulers to facilitate procurement that ensures the 10% standard is met and that the content is derived from residential post-consumer sources. Measures to Protect Ratepayers from Increased Costs Under the RMA, producers will provide funding for several activities that are currently financed indirectly through ratepayer recycling fees. In addition, producers will fund activities designed to implement recycling system improvements. While the level of many of these investments have yet to be finalized, the investments are anticipated to be significant and will indirectly protect existing ratepayers from fee increases as local governments and system participants will no longer be required to recover such costs exclusively through rate payers. Producer funding directed toward existing activities that should provide ratepayer protection include:  Annual compensation to CRPFs to cover current operating and contaminant disposal costs as well as future system improvement costs  Annual local government contamination reduction program funding  Funding for local government transportation of covered materials for more than 50 miles New sources of producer funding directed toward recycling system improvements that should provide rate payer protection include:  Producer funding for expansion of local government collection services  Close to 50% of CRPF compensation relates to recycling system improvements associated with RMA obligations  Producer funding for the collection of PRO acceptance list materials including potential funding in support of continued curbside collection of select materials  Producer funding for the provision of local government education and outreach materials  Producer funding to ensure collected materials are recycled at responsible end markets  Producer funding for waste prevention and reuse projects designed to lower the environmental impact of covered materials With respect to the processing costs of collected materials and the requirement under 459A.923 (2) which requires PROs to share in processing costs to allow local governments to reduce the financial impact on ratepayers, CAA supports data reporting processes that would allow it to provide local governments with an annual estimate of PRO funding provided to processing facilities in relation to the volume of commingled 40 circularactionalliance.org materials collected in their jurisdiction. This would allow individual local governments to take PRO funding into account when setting ratepayer fees and processes for their local service providers. CAA can track certain commingled volumes through the provision of transportation subsidies, but will likely require additional reporting by CRPFs to ensure that this information is accurate on a local government basis. CAA will work with DEQ to review various data reporting requirements under the RMA with the goal of providing this type of information to local governments. CAA also supports the monitoring of developments at CRPFs over the course of the program plan in relation to the anticipated investments and costs identified through the study by Crowe on the Oregon Processor Commodity Risk Fee and Contamination Management Fee.1 This is necessary to review whether anticipated investments were made and to review whether processing facility anticipated cost estimates were accurate. Such information will help refine forecasting estimates associated with anticipated future studies related to the calculation of CRPF processing fees. CAA believes that DEQ is best positioned to gather this information as a requirement of CRPF permitting reporting. Finally, CAA has an obligation under 469A.875 to describe how it will provide funding to allow local governments to protect ratepayers from the increased costs associated with processing and marketing recyclable materials. As noted above, CAA will be making significant investments to support recycling throughout the state and indirectly protect ratepayers. CAA will provide local governments with an annual summary of RMA funding in relation to materials collected in their jurisdiction so that these amounts can be reviewed by local governments when conducting ratepayer reviews in relation to recycling services. iv. Start-Up Approach for Time-Sensitive Tasks Given the program start date of July 1, 2025, there are time-sensitive tasks that need to be completed during 2024 and early 2025. The expected start-up tasks include: 1. Negotiating with and then providing associated compensation (with a single accounting point-of- contact system) to local governments for service expansion 2. Setting up a single accounting point-of-contact system for compensation of local governments for expenses not related to service expansion (i.e. transportation funding, contamination funding, roll cart funding, etc.) 3. Setting up a single accounting point-of-contact system for payment of contamination management fees and processor commodity risk fees to CRPFs. 1 Crowe. Study Results: Processor Commodity Risk Fee / Contamination Management Fee. Retrieved March 8, 2024 from https://www.oregon.gov/deq/recycling/Documents/TWGTask4-5Report.pdf. 41 circularactionalliance.org In relation to the stated start-up tasks, CAA will begin outreach to and preliminary negotiations with all respondents to the initial needs assessment to further develop understanding of service expansion funding needs. Details of this proposed outreach, including ways to gather information that uses stakeholder time efficiently (by addressing multiple related topic areas for example), are included under the “Proposal for an Oregon Recycling System Optimization Project" section above. By June 30, 2025, the development, buildout, and implementation of a local government-facing portal will be completed. The portal solution will provide an easy to use yet secure platform for producers, service providers, and state/local stakeholders to interact with CAA. All data within the portal will be encrypted to safeguard against external threats and ensure the confidentiality of data. For local governments and service providers, the portal will allow access through a secure user ID and password. Once in the portal, service providers will be able to view their claims, account history and balance due, and reports and notices. Additionally, the portal will provide multiple means for service providers to send their claims data to CAA through data exchange, structured file upload, or direct entry. As described above, details for administering each of the individual reimbursement programs will be discussed with local governments during the next phase of outreach. This process will inform further specific portal requirements. In parallel to local government and service provider outreach, CAA will continue its discussions and engagement with Oregon’s eligible CRPFs to better understand their needs and align on administrative processes for the payment of contamination management fees (CMF) and processor commodity risk fees (PCRF). Payment of these fees will also be facilitated through CAA’s secure portal system. Leveraging functionality that will support the overall achievement of Objective 1, including ensuring that materials are collected and processed for recycling in Oregon are consistently delivered to responsible end markets, CAA will provide full material flow traceability through a system that manages and reconciles inventory flow from initial possession, through validation of receipt by responsible end markets. This same functionality will support the track and trace needs under the transportation reimbursement process. 42 circularactionalliance.org b. The PRO Recycling Acceptance List This section outlines activities, timelines, and recommendations for increasing diversion of materials named on the PRO Acceptance List from disposal, including proposed approaches to meeting convenience and performance standards and setting collection targets. As noted below, CAA has completed a GIS mapping exercise to assess existing depots and alternate collection sites in relation to the RMA rule requirements. In general, where there are service gaps in relation to RMA convenience standards, local governments are currently collecting some PRO materials through curbside collection. These local governments have indicated to CAA that they would like curbside collection of certain PRO materials to continue under the RMA and CAA has indicated its interest in working with local governments to support this added level of convenience. As the exact number of physical collection points that CAA will propose is dependent on the outcome of local government discussions in relation alternate collection activities in key local government jurisdictions, CAA has not aligned on a proposed number of physical collection sites for PRO acceptance list materials at the start of the Program. The numbers provided below are initial estimates, which combine physical locations with alternate activities. As CAA conducts further outreach in relation to assessing local government service expansion requests, it will also work with local governments to confirm potential participation in the collection system for PRO acceptance list materials. These discussions will enable the development of a more detailed plan for the collection system which in turn will layout a detailed proposal for CAA’s compliance with convenience standards as part of the anticipated second program plan required in September. i. Proposed Approach to Achieving Convenience Standards Requirements Through the rulemaking process, DEQ has defined the convenience standards for depots to ensure Oregonians have reasonable and equal access to recycle materials that the PRO is responsible for collecting and managing. ORS 340-090-0640 outlines minimum sites for counties, cities and the Metro region. 43 circularactionalliance.org Figure 1. An infographic summarizing the requirements of recycling access laid out in the RMA The PRO will be required to have a minimum of:  One depot in every county  One additional collection point in counties with over 40,000 residents  Additional depot locations for counties in the Metro region (Clackamas, Multnomah, and Washington Counties)  A depot in cities of 7,000 or more for cities outside the metro region  A depot for every city of 14,000 within the Metro region  Additional collection points based on population and location of the city The achievement of this distribution is demonstrated in Appendix F. In addition to minimum regional requirements for depots, there are additional considerations that CAA is factoring in when considering optimal locations for siting depots, including:  Incorporated versus unincorporated parts of counties  Proximity to public transit in the multi-depot cities  A goal that 95% of Oregonians live within 15 miles of a depot Further, enhanced convenience standards exist for PE film, plastic buckets and pails, glass bottles and jars, PE and PP lids and caps, and HDPE package handles. 44 circularactionalliance.org Block EPS, pressurized cylinders, aerosol packaging, aluminum foil and shredded paper are not included in the materials that must be collected at locations that meet the enhanced convenience standards. However, CAA, when possible, proposes to attempt to have most existing permitted sites, collection events and on- route (in specific urban areas) collect most, if not all PRO materials (collected separately from Universal Statewide Collection List materials), meeting the enhanced convenience standards for all materials while minimizing costs to the system and increasing convenience for the user. All depot locations shown in this section on the maps (Figures 2 and 3) and in Appendix F are being considered as enhanced locations accepting all PRO materials. CAA will also consider alternative depot locations, where necessary for certain product categories, such as PE films, aerosols and pressurized cylinders. The use of on-route collection in certain metropolitan areas, at no additional cost to residents, is also being explored as a means to help meet convenience standards. Further discussion of suggestions around the proper management of pressurized cylinders and block EPS can be found in the relevant sections below. Network Analysis and Mapping Given all the requirements to meet convenience standards, CAA estimates it will need to establish between 138 and 189 points of collection for materials on the PRO acceptance list. Points of collection refer to physical depots and events. The number also includes 38 identified areas where on-route collection may, in part, replace the need for a physical depot. CAA contracted with IncaTech, a consultant group specializing in geospatial analysis, to utilize a GIS mapping tool to predict where coverage might be possible through existing depots and permitted facilities. Lists of prospective depots sites were prioritized and input separately as layers of information to produce different network coverage scenarios. The RMA requires the PRO to prioritize outreach to permitted DEQ facilities and existing depots. CAA will issue letters to all permitted and existing sites inviting them to participate in the PRO depot network. This will occur in the first stages of the ORSOP and be followed by a series of outreach activities to prepare local governments and service providers for the ORSOP. Through this outreach, permitted DEQ facilities and existing local government depots will receive no less than two specific and direct requests to consider joining the PRO depot network. Access to webinars, information offered on the CAA website, and other anticipated electronic communications will further increase awareness opportunities for these sites as required in ORS 459A.896(1)(a). A map of existing depots and permitted facilities was layered over the county and city convenience standard requirements to determine where gaps in convenience standards would exist if all existing locations joined the network as ‘enhanced’ locations. Given the location requirements, many gaps were discovered in the state where alternative locations or methods of collection are needed. To fill some of the gaps, CAA researched likely participating partner locations of existing refuse-related industry locations and community-based organization (CBO)/current Ecycles locations. CAA also noted and 45 circularactionalliance.org layered many of the existing permitted locations, as well as potential future partner locations that could serve as backup in cities where convenience standards would not be met if some of the central existing permitted locations chose not to participate. 173 existing permitted depot sites were identified with additional plausible existing locations (hauler yards, CBOs, etc.). These 173 locations cover much of the state, meeting the state convenience standards of reaching more than 95% of residents within a 15-mile range and having at least one site per county. However, CAA may not be able to initially meet the city convenience standards, leaving gaps in some of the cities. Strategies to close gaps in convenience standards are explained below. Closing Gaps to Meet Convenience Standards The initial phase of depot implementation is estimated to begin in 2025 by expanding collection of PRO material to the participating existing depot and permitted site locations. Many existing hauler sites and permitted locations have expressed interest in participating as a PRO material collection point, however confirmation of participation is not yet confirmed. CAA has also identified over 285 backup sites that could be substituted if any existing facilities ultimately chose to not participate as a PRO collection point. CAA also proposes to conduct outreach to retailers to explore existing or expanded collection opportunities for certain product categories, such as PE films, block white EPS, and pressurized single-use containers. In metropolitan areas where on-route glass collection services currently exist, CAA will explore the potential of adding certain PRO materials to on-route collection services. CAA has sent out a questionnaire to Metro Regional governments to explore the economic feasibility and practicality of curbside collection. In the event that CAA and the local governments agree this is the best way to meet convenience standards for PRO materials, CAA proposes the number of depots required be adjusted in those enhanced service areas. CAA recommends offering direct service for the collection of PRO materials as it would help increase participation for all residents, increasing recovery rates and broadening access for residents. CAA will explore the potential of enhanced curbside collection of PRO materials for both single-family and multifamily residents. To further address underserved communities and neighborhoods, CAA will consider hosting collection events in those identified areas. As the depot network is built, there may be instances where barriers exist in establishing depots, such as a lack of available commercially zoned properties, or locations that do not immediately meet performance or geographic convenience standards. Where there are gaps and barriers that prevent ready identification of a suitable depot location, the CAA team will consider all practicable measures to work with prospective partners to develop a suitable site. Until a site can be developed, collection events may be necessary to meet convenience standards (more details on events below). In these locations, CAA will explore one of three main options to fill the gap: 46 circularactionalliance.org 1. Adding PRO materials to a curbside container service, separate from USCL collections, and available at no cost to single family and multifamily properties to meet and exceed the convenience standards. Property density, service provider availability, and economic viability will guide this option 2. Partner with a CBO or independently host collection events regularly in areas lacking a permanent depot location a. An emphasis on events in underserved areas of the cities will be prioritized. This option will be better suited where sites and infrastructure are limited and/or there is a lack of economies of scale for the alternative options b. Option 2 and 3 will be combined in areas where single family convenience standards are met by on-route collection by adding targeted events to multifamily apartment complexes multiple times a year 3. Constructing a new facility to act as a depot location for PRO items in the community. Site availability and economic viability will likely be the main drivers of this option 47 circularactionalliance.org Running Collection Events For events, CAA proposes to work with the municipality to prepare events that will best serve the population. CAA will work with cities and counties to find the most suitable sites for collection events and determine the best time and frequency of hosting events. CAA will work with jurisdictions to promote the collection events and collect data on utilization. The events will either be staffed by the local municipality and reimbursed by CAA, or by a partner CBO or local COBID certified contractor with experience in waste management. Design for these events will be based on the models of existing Metro area collection events such as Metro Hazardous Waste Rounds Ups, City of Gresham Earth Day Events, Lane County’s Plastics Round Ups or James Recycling’s recycling collection events and they may be combined to increase participation. CAA team members and partners have experience conducting similar events in other parts of the U.S. and Canada. The type of event will depend on the community’s needs and what other disposal options currently exist. Events will be conducted in accordance with the same performance standards as depot locations (outlined in the Performance Standards section), offering free collection services and collecting covered materials in a way that preserves the quality of the material and prevents risk of litter or loss of materials. Requesting Variances Onboarding the backup locations, siting and construction of new locations and event implementation for filling convenience standard gaps will begin in 2025 and CAA expects its proposed collection system to be completed by the end of the program plan. CAA intends to meet convenience standards in all service locations via one of the three options identified above for targeted communities. In the event a suitable location cannot be identified for a permanent collection location or collection event, but a suitable location is established within a reasonable distance, CAA will request a proximity exemption variance. CAA proposes a reasonable distance would be 15 miles from the established depot serving as the basis of the proximity exemption to the jurisdiction where the PRO depot location/collection service is lacking. If there are extenuating circumstances beyond the PRO’s control, including natural disasters such a wildfires and floods, or other situations that could affect service to a community for a prolonged period, CAA will seek a temporary variance on operations of that depot. 48 circularactionalliance.org Figure 2. Proposed sites to meet performance standards and most convenience standards. Using the existing collection sites of permitted facilities and local government depots, CAA has identified 142 suitable existing sites that, combined with special events and/or enhanced curbside service, will serve 96.9% of the population within a 15-mile buffer, based on 2020 census data. Number of Existing Total Population % Beyond % of Population Collection Points Population within 15 Miles 15 Miles within 15 Miles State of Oregon 173 4,237,256 4,105,681 131,575 96.9% Table 3 49 circularactionalliance.org Figure 3. Identified backup sites where proposed sites do not wish to participate. Due to the magnitude of the task and the need for the ORSOP, outreach to all sites has not yet been completed. CAA will prioritize detailed outreach to inform the planning processes. However, based on preliminary discussions with local governments and their service providers, CAA believes many of these sites will host depot collections for at least some PRO materials. As mentioned above, CAA recognizes not all permitted sites and local government depots will elect to accept PRO depot materials. The requirement for a higher concentration of depots in metropolitan areas will also require additional locations beyond the existing sites. Anticipating this need, CAA has consulted with several organizations to explore the feasibility of utilizing their services to fulfill the remainder of the convenience standards requirements. Those organizations include:  St. Vincent de Paul  James Recycling in the Metro Area  Bring Recycling  City of Roses Disposal and Recycling  Oregon Beverage Recycling Cooperative  Trash for Peace  Habitat ReStores in the Portland Area  The Arc of Portland 50 circularactionalliance.org All of these organizations, which are either non-profit or minority owned/operated, have expressed interest in continuing to explore the opportunity to be part of the PRO depot network. Once the program is underway, to ensure compliance with convenience standards for transit access, CAA proposes to use the GIS mapping tool to overlay public transit routes to ensure the additional depot locations meet the proximity requirements for access to public transit. Underserved Populations The CAA team has also considered mechanisms for collecting PRO materials from residents that might not be able to access depot points. CAA will explore the possibility of providing valet services through haulers currently servicing the area, many of which offer a form of subscription collection service, such as Recycle+, in metropolitan areas. The contracted hauler’s ability to offer valet services across the state will be explored as part of the proposed ORSOP. CAA proposes to develop eligibility criteria for these valet services. Some of those criteria could include that a resident is a recipient of Meals on Wheels, receiving home care services, and/or set-out/set-back assistance. CAA proposes to consult with organizations representing aging and disabled populations to develop the appropriate criteria for eligibility and means to educate these populations about collection services available to them. Just as CAA has been exploring working with a on route collection model for areas lacking sufficient depots, these collection methods are also being explored for collecting PRO and USCL materials for handicapped individuals via the same method. In the Portland area for example, CAA is exploring contracting with Trash for Peace to use electric vehicles (cars/vans/bikes) to serve mobility-limited populations within the city in addition to exploring similar services that may be offered by haulers. ii. Proposed Approach to Addressing Performance Standards Once the depot network is developed, it will be CAA’s responsibility to ensure that each site is operating in conformance with the performance standards defined in the rules. Oversight includes ensuring:  Sites and services consistently conform to operating standards  Depots are free to the public  Sites are well promoted to maximize awareness and participation  Infrastructure around the site promotes ease of accessibility  Quality of recyclable materials is maintained  Depot sites have a positive impact on the communities and environment within which they operate CAA proposes to build multiple check points into the process of establishing and maintaining the network in a way that meets all these performance standards. 51 circularactionalliance.org Criteria for Site Selection CAA is responsible for reaching out to permitted facilities and existing locations to assess their interest in participating as a PRO depot and their suitability as a site. If a permitted facility or existing depot location is found not to conform to the performance standards, CAA will reconsider the eligibility of that depot to serve as a drop off facility within 12 months of that depot correcting any non-conformance to the performance standards. CAA will also ensure hours of operation conform to the rules. If a depot is located at a “parent facility”, such as a permitted facility, access to the PRO recycling area will be open those same hours. For all other collection points, or “stand alone” sites, CAA will ensure they are open for at least 4 days a week, 8 hours a day and that one of those operating hours falls on a Saturday or Sunday. All sites must meet accessibility standards, having ADA compliant recycling areas in prominent places or marked so residents can easily access recycling opportunities. The sites need to also be accessible from a transportation perspective, ensuring roads and public spaces are suitable for residents to reach sites safely and for logistics partners to service. For collection opportunities that may be co-located with retail or other commercial activities, clear signage on how to access the recycling system will be made available at entrance points. Sites will be fenced or have some other enclosure that acts as a litter mitigation measure. All collection areas shall be covered by a roof or have lidded bins that protect the material's quality and prevent water from collecting in covered material collection areas. Establishment of Depot Sites and Contracts As depot locations are brought on board, CAA will assess sites for additional equipment and infrastructure needed to meet the performance standards. Additional staff time necessary to fulfill the operational obligations of the PRO depot network will also be assessed and worked into the payment schedule. Each site will enter into a services contract with CAA, which will outline performance expectations as terms of the contract. CAA will also document that all operational expectations are in place before a depot location is added to the network. CAA will create a site audit record for each site, demonstrating that each depot location can meet the performance standards at the outset of operating in the program. Depot staff will undergo initial onboarding training with their CAA point of contact. Staff will receive training in all operational procedures, become familiarized with the system for pick-up requests, and learn where to find resources to promote their services. CAA will provide a depot management handbook outlining the above information to all depot sites. CAA will work with collection sites to determine the best compensation method. Collection volumes may be low for some sites, in which case factoring a per pound reimbursement might not be practical. To adequately accommodate for the fixed space and labor costs, CAA may need to compensate collection sites based on a flat, per month service fee. Terms of compensation will be part of the depot negotiation process. 52 circularactionalliance.org A provision of the contract will state that any incidents that could substantially impact services offered or require emergency response be reported to the PRO within 24 hours. That will allow the PRO 24 hours from the time of notification by the collection depot to convey incidents to DEQ within the two business days defined by rule. Operational Support Once a depot is operating in the program, CAA will provide resources to support their operations. CAA anticipates offering the following resources:  newsletter for depots to keep them informed of the progress of the program, feature information on best practices, and remind them how to contact the team for assistance  Offer webinars to ensure operators are familiar with operational procedures  Develop a media kit that will help depot sites promote the PRO collection opportunities alongside their other services  Have access to digital resources like the PRO depot management handbook and digital files for signage To ensure residents across Oregon have an equal opportunity to recycle, CAA will make education and promotional materials available in multiple languages. Different language options offered for depot education will mirror the language options used in each jurisdiction for broader program education elements. Annual Audits CAA will develop an audit cycle that will include a mix of on-site and desktop audits performed each year for every site. On-site audit inspection will be conducted to ensure operations are running smoothly and in accordance with the terms of the contract. Desktop audits and on-site audits will assess the same criteria. When a desk audit is performed rather than an on-site audit, documentation via photos, promotional efforts and compliance documentation will be requested. All the same documentation will be gathered by CAA staff when conducting an on-site audit. Audit Criteria The audit criteria will include, but not necessarily be limited to:  Adequate signage advertising the program, program hours, who residents can contact if there is a complaint about the site and noting that the program is free  Record of program promotion throughout the year  Certificates of insurance  Demonstration that staff are knowledgeable about the PRO program, PRO depot training is provided to all new employees, and employees have access to the PRO depot management handbook 53 circularactionalliance.org  A mechanism for logging site complaints directly and documentation that complaints were forwarded to CAA Contamination Management CAA will require, when feasible, an on-site staff member to be present to assist the public with drop-offs of PRO materials. This staff member will ensure cleaner material streams and will be an educator to the public about the PRO depot system and what it can collect. Where repeated contamination or illegal dumping issues arise at a site, CAA may use monitoring technology to address issues. Signage will be prominently placed to offer instructions on management of materials that are not accepted in the collection system and would therefore contribute to contamination. If a load of material is determined to be too contaminated for an end market, the PRO will explore options to remedy the contamination situation through initial sorting. If that is not possible, the PRO will choose to landfill the material and notify DEQ within three business days of disposal. The notification will include a description of:  The nature of contamination  The cause of contamination  The remedy explored to improve the quality of the contaminated load  The remedy that will be put in place to prevent future contamination Specific Material Handling Requirements Block White EPS Foam Management There are three regions in the state that have established foam densifying operations or are themselves a recycling market for block white EPS foam. Outside of these areas, CAA will work with specific PRO depot locations or partners to house non-thermal foam densifiers for consolidating the foam in the surrounding communities. CAA is exploring placing densifiers and exploring mobile densification near Grants Pass, Klamath Falls, Burns, Redmond, Ontario, The Dalles and Pendelton. These sites will prevent the movement of loose polystyrene for more than 75 miles. Where these sites do not meet the requirements, third-party sites will be contracted and/or mobile units will be dispatched. Additional contracting with these locations for staff and proper compensation will be negotiated with those sites. Pressurized Containers and Aerosols CAA recognizes that all aerosols and single-use pressurized cylinders will be managed through a household hazardous waste (HHW) system according to OAR 340-090-0650(2)(b). The DEQ permitted facilities that CAA will be reaching out to as priority PRO depot locations meet the criteria of being staffed, and some have permanent HHW collection sites. 54 circularactionalliance.org In addition to working with the permitted DEQ facilities that offer HHW collections, CAA is reaching out to contractors that host events for many of the counties across Oregon to explore how CAA can support the collection of aerosol containers and pressurized cylinders through those programs. CAA has been in contact with PaintCare to explore the potential of partnering on promotion and coordination of HHW collection points and events where both programs are supporting the cost of managing covered materials. Where there is an opportunity to partner on specific PaintCare collection events, CAA will consider co-sponsorship of those events. Once collected, both aerosol and pressurized cylinders would be managed by licensed HHW material handlers. CAA proposes reporting recovery of those products in empty containers weight, if it is possible for third party vendors managing the evacuation of the packaging to provide that data. If that is not possible, CAA will need to develop a calculation for a proxy weight that would be used for reporting. CAA will not accept aerosol cans or pressurized cylinders from any non-residential generator unless that non-residential generator affirms in writing its status as a very small quantity generator pursuant to 40 CFR 260.10 and 40 CFR part 262. The table below shows the counties currently supported with either a permanent HHW collection point, collection events or a combination of both. Aerosol containers and pressurized cylinders are items commonly managed through these existing programs, and CAA will seek to finance the collection and management of those products in partnership with those jurisdictions. CAA estimates that 94.6% of the Oregon population currently has access to some form of HHW collection through their county. The table below also identifies the counties that are lacking any HHW access for residents. CAA will prioritize hosting additional collection events for aerosols and pressurized cylinders in those jurisdictions. 55 circularactionalliance.org ID County 2022 Population Wasteshed HHW HHW Sites Events HHW Sites HHW No Events Coverage 801 Baker 16,860 Baker Yes - 16,860 0 0 802 Benton 93,976 Benton - Yes 0 93,976 0 803 Clackamas 425,316 Part of Metro Yes Yes 425,316 425,316 0 804 Clatsop 41,428 Clatsop - Yes 0 41,428 0 805 Columbia 53,014 Columbia - Yes 0 53,014 0 806 Coos 65,154 Coos - Yes 0 65,154 0 807 Crook 25,482 Crook - Yes 0 25,482 0 808 Curry 23,662 Curry - Yes 0 23,662 0 809 Deschutes 203,390 Deschutes Yes - 203,390 0 0 810 Douglas 111,694 Douglas Yes - 111,694 0 0 811 Gilliam 2,039 Gilliam - Yes 0 2,039 0 812 Grant 7,226 Grant Nothing Nothing 0 0 7,226 813 Harney 7,537 Harney Nothing Nothing 0 0 7,537 814 Hood River 23,888 Hood River - Yes 0 23,888 0 815 Jackson 223,827 Jackson - Yes 0 223,827 0 816 Jefferson 24,889 Jefferson Nothing Nothing 0 0 24,889 817 Josephine 88,728 Josephine - Yes 0 88,728 0 818 Klamath 69,822 Klamath Nothing Nothing 0 0 69,822 819 Lake 8,177 Lake Nothing Nothing 0 0 8,177 820 Lane 382,647 Lane Yes - 382,647 0 0 821 Lincoln 50,903 Lincoln - Yes 0 50,903 0 822 Linn 130,440 Linn - Yes 0 130,440 0 823 Malheur 31,995 Malheur Nothing Nothing 0 0 31,995 824 Marion 347,182 Marion Yes - 347,182 0 0 825 Morrow 12,635 Morrow Yes - 12,635 0 0 826 Multnomah 820,672 Metro Yes Yes 820,672 820,672 0 827 Polk 88,916 Polk Yes - 88,916 0 0 828 Sherman 1,908 Sherman - Yes 0 1,908 0 829 Tillamook 27,628 Tillamook Yes - 27,628 0 0 830 Umatilla 80,523 Umatilla Nothing Nothing 0 0 80,523 831 Union 26,295 Union - Yes 0 26,295 0 832 Wallowa 7,433 Wallowa Yes - 7,433 0 0 833 Wasco 26,581 Wasco - Yes 0 26,581 0 834 Washington 605,036 Part of Metro Yes Yes 605,036 605,036 0 835 Wheeler 1,456 Wheeler Nothing Nothing 0 0 1,456 836 Yamhill 108,261 Yamhill - Yes 0 108,261 0 Total 4,266,620 3,049,409 2,836,610 231,625 71.5% 66.5% 5.4% 56 circularactionalliance.org Table 4 Compensation CAA proposes to contract with each location for wages and salaries for additional depot employees needed to monitor and maintain PRO materials. Reuse CAA will explore opportunities for supporting reusable packaging at depot locations and events. As depot locations and events will be staffed there may be opportunities for collection of reusable packaging. If member producers express interest in introducing reusable packaging formats, CAA will work those producers and other stakeholders to assess the logistics and operational requirements required to facilitate collection through the PRO depot system. This will likely require additional reverse logistics arrangements specific to refillable packaging. Depending on the status of the material in question, incorporation of reusable packaging into the PRO acceptance collection system may also require material reporting category changes and program plan amendments. CAA will work with producers to assess the full financial and operational implications of managing reusable packaging. Where appropriate trials may be implemented to assess feasibility. Advanced Notification Before considering adding any materials for collection at the depot, including a reusable packaging format as described above, CAA would engage with DEQ in a process of notification six months before implementation. At that time of notification, CAA will produce data relevant to the proper screening assessment, which relates to sufficient availability of responsible end markets. Promotion of the PRO Depot Network The statewide promotional campaign, as part of the broader education and outreach component of this Plan, will focus on three main areas: the USCL, the PRO recycling acceptance list collection materials (including how to take advantage of PRO Recycling material collection opportunities) and reducing contamination (both in terms of proper preparation of materials and avoiding non-accepted materials). Collection opportunities will be promoted via a CAA-developed website that lists the available depots throughout the state. This will include hours of operation and site accessibility information. Customizable collateral that will be made available to local governments via an online portal and then distributed through their existing channels will also reinforce relevant messaging about depot recycling opportunities. Educational collateral and campaign material will also highlight the importance of proper preparation of materials for recycling. CAA proposes to use proven motivational messaging to address key issues and inform residents about the new opportunities to recycle materials in their area. 57 circularactionalliance.org To ensure that materials are accessible and culturally relevant, CAA has built in audience research and consultation processes with local governments, community-based organizations, targeted community focus groups, DEQ and the Oregon Recycling System Advisory Council (ORSAC). This is to ensure that all educational collateral is informative, well-designed, culturally relevant and actionable. Local governments will also be able to tailor materials to their area via CAA’s online portal. More information about CAA’s proposed approach to education and outreach, including education and outreach specific to the PRO depot network, can be found in the “Education and Outreach” section of the Operations plan. Equity in Performance Standards and Collaboration with the Community As mentioned in the Convenience Standards section above, CAA has been in talks with several CBOs around the state that have expressed interest in staffing and maintaining depots. Several of the CBOs function as workforce development programs, such as Trash for Peace’s Environmental Promotor program or The Arc’s Job Training programs for individuals with Intellectual and Developmental Disabilities (IDDs). Working with these CBOs to utilize the management of the depots as a training ground for workforce development aligns with the current goals of many of these programs. Saint Vincent de Paul and James Recycling also have similar workforce development programs tailored to individuals with differing physical and mental abilities. CAA aims to make some of the depot contamination management and other processes obtainable for individuals with differing physical and mental abilities. iii. Start-Up Approach for Establishing the Depot Collection System In the sections above relating to meeting convenience and performance standards, there are several references to CAA’s plans to contact existing depot locations as well as pursue opportunities to partner with new locations or offer alternative solutions. As previously noted, CAA plans to undertake this start-up activity (previously an interim coordination task) as part of its proposed ORSOP. However, given there are several considerations that are PRO depot specific, the outline below explains in more detail the tasks and timings specific to this aspect of the needs assessment work. Phase 1: Preparation (April 2024) CAA’s first phase of work to establish a depot collection system will focus on preparing for outreach and engagement. Likely activities during this phase include, but may not be exclusive to:  Working with Oregon DEQ and other stakeholders to identify key information gaps to inform outreach and analysis process, for example, the potential role of transfer stations in the depot network  Refining the target list of existing and potential depot partners, including identifying overlaps with outreach to local governments and service providers 58 circularactionalliance.org  Drafting consultation materials e.g., background and planning documents that will include (at a minimum) explorations of the following for existing depot/drop-off sites including those run by Local Governments/service providers, and new sites: o Existing collection provision and capacity (if applicable) o Appetite and capacity for expansion (existing and new sites) o Estimated cost of expansion o Specific material questions relating to current and potential handling e.g. proposed status of glass, handling needs for materials like EPS, aerosols etc. o Understanding Education and Outreach provision and needs Phase 2: Consultation, Enhanced Analysis and System Design (May- August 2024) CAA’s second phase of work will focus on conducting outreach, leveraging efficiencies where this may overlap with other outreach to local governments and service providers in relation to curbside service. Activities may include, but will not be limited to:  Undertaking outreach to local government and potential partner depot operators, using the following potential methods: o Direct outreach, potentially via a survey mechanism (efficiencies with ORSOP to be explored) o Follow-up calls and meetings to pursue negotiations with potential depot partners o Group meetings to facilitate coordination at the wasteshed level  In parallel to, and informed by, the outreach and consultation process: o Exploring and modeling options for materials management including aggregation, transportation and Responsible End Market management, informed by learnings from survey and other outreach o Refining the GIS mapping work CAA has commissioned to date with IncaTech to revise estimates of schedule for meeting convenience standards o Developing detailed approach to meeting performance standards, further developing and refining the initial proposals outlined in this submission o Refining the plan for achieving collection targets and adjusting corresponding aspects of the Program Plan o Liaising cross-functionally or across PRO(s) on Education and Outreach needs Phase 3: Revised Draft Development and Iterations (September 2024) Informed by additional 2024 outreach, CAA will update plans for the PRO acceptance list collection system. 59 circularactionalliance.org Phase 4: Operationalization and Onboarding (January-June 2025) Subject to DEQ approval of the CAA program plan, CAA will focus on the operationalization of the Oregon PRO depot network. Activities may include, but will not be limited to:  Finalization of contracts with local governments, service providers and end markets  Finalizing the launch of reporting and accounting systems while onboarding key stakeholders Phase 5: Launch By June 30, 2025, the first phase of PRO acceptance list collection points will be open. This will provide continued opportunity to recycle in Metro areas where items formerly on local government recycling acceptance lists have moved to the PRO recycling acceptance list. Over the course of the program plan CAA will on board additional collection sites to fully achieve convenience standards. Continued education and outreach efforts will ensure accurate information for residents regarding depot location, depot accepted materials, proper preparation of materials for recycling and top-level contaminants to avoid. iv. Proposed Depot Collection Targets CAA has developed initial proposed collection targets for the PRO depot network. Where possible and where data were available, information from Cascadia’s Overview of Scenario Modeling: Oregon Plastic Pollution and Recycling Modernization Act (referred to from here on as the “Cascadia report”) was used to generate the values in the following section. Where data were not available, supplemental sources from depot programs in Ontario (the Resource Productivity and Recovery Authority for general blue box materials and the Orange Drop program for hazardous materials) were referenced.2 For the purposes of simplifying equations to demonstrate estimated collection rates per location, the following section will reference a number of depot locations. In this section, the term “depot” is used to represent physical locations, events and curbside services for PRO materials as explained in the “Proposed approach to meeting convenience standards” section of the Program Plan. Strictly for purposes of calculations here, but pending a number of considerations going forward, the table and text below use 173 sites against projected collected tons.3 The numbers are presented as an average per site per year, recognizing that, in reality, some sites will collect more material than others. 2 https://stewardshipontario.ca/wp-content/uploads/2022/06/SO-2020AR-FINAL-002-3.pdf 3 Variables that will affect or determine the final number of collection sites include but are not limited to 1) the percentage of local governments agreeing to host sites, 2) DEQ’s flexibility in meeting convenience standards by city, 3) value of curbside collection to displace number of depots, 4) number of sites that can accept all materials versus a more limited range, 5) materials management standards for aerosols and pressurized containers as HHW, 6) the ability to use existing film drop-off points at retailers, and 7) the ability to substitute events for sites. 60 circularactionalliance.org For purposes of projecting collection targets in this section and subject to additional analysis in future versions of this Plan, CAA also assumes that 15% of the Oregon population will participate in depot and related services. Proposed Collection Targets and Rates Proposed Collection Average Tons/Year Per Average Pounds Per Material Targets and Rates Collection Point Participant Per Year Steel and Aluminum 325 tons 1.03 1.88 Aerosol Packaging (11.6% collection rate) Single-Use 120 tons 0.38 0.69 Pressurized Cylinders (15% collection rate) Polyethylene Film 1,950 tons 6.16 11.27 Packaging (5.9% collection rate) Aluminum Foil and 390 tons 1.23 2.25 Pressed Foil Products (6.2% collection rate) Block White Expanded 490 tons 1.55 2.83 Polystyrene (9.2% collection rate) Polyethylene (PE) and Polypropylene (PP) Lids and High-Density 290 tons 1.68 0.92 (10% collection rate) Polyethylene (HDPE) Package Handles Plastics Buckets, Pails, 975 tons and Storage 3.08 5.64 (15% collection rate) Containers Table 5 Material-Specific Discussion Steel and Aluminum Aerosols Data on available steel and aluminum aerosols is very limited. Data that was available from the Cascadia report did not provide any generation estimates specific to aerosol cans. Data from other jurisdictions and 61 circularactionalliance.org sources4 suggest approximately 2,800 tons of empty containers were generated in Oregon in 2023. The Cascadia report suggests 166 tons of aerosols would be collected at depots. However, data from other Oregon sources, such as facilities that are currently handling this material, suggests the number could be significantly higher. It is estimated that approximately 325 tons of empty aerosol containers will be collected. Thorough education and outreach will help increase diversion. Overall, the collection rate is estimated to be approximately 11.6%. An average of 1.03 tons (empty package weight) are expected to be collected per each through the collection point network, at an estimated average of 1.88 pounds collected per participant per year. CAA recognizes that aerosol containers will need to be managed as HHW items. CAA is currently working with both permanent and event collection HHW providers to understand the volumes that will be collected through those channels and recovered by the PRO. As CAA learns more about the volumes currently collected through HHW programs, this collection calculation may be revised. Single-use Pressurized Cylinders The Cascadia report did not have any specific generation data on single-use pressurized cylinders. The only source identified was from the Orange Drop program in Ontario, Canada. Extrapolating from data available from the annual reports it is estimated that approximately 800 tons of pressurized containers were generated in Oregon in 2023. Through an aggressive depot collection education program, it is anticipated that up to 120 tons may be collected. The projected collection rate would be approximately 15%, averaging 0.694 tons per each collection point or approximately 0.38 per participant per year. Polyethylene Film Packaging Data from the Cascadia report suggests approximately 66,000 tons of polyethylene (PE) film were generated in 2023. Assuming 50% falls within the RMA scope5, approximately 33,000 tons are generated and available for collection. An estimated 1,950 tons will be collected per year, which is a number consistent with data from available Canadian depot programs. Consumer confusion over flexible films may result in a mix of film resins being captured at the collection points. Overall, the collection rate is estimated to be approximately 5.9%. An average of 11.272 tons are expected to be collected per each of the collection points in the network, at an estimated average of 6.16 pounds collected per participant per year. As part of the depot network for film collection, CAA will reach out to the 4 These include capture rate data from The Recycling Partnership and proprietary data from other programs. 5 This assumes that 50% of PE film is out of scope because it is generated as wrap by non-RMA retail, distribution center and industry sources. This estimate aligns with other industry sources, for example The Recycling Partnership capture data, accounting for some increases due to commercial volumes but also some decreases due to plastic bag bans in Oregon. Note that this same generation figure is used in the denominator of the plastics recycling rate calculations below. 62 circularactionalliance.org retailers currently collecting film in the state to see which locations may be voluntarily added to the PRO collection network for film. DEQ designated PE film as a PRO depot material due to concerns surrounding the material’s compatibility with the existing recycling system. While not challenging this decision, CAA believes that this material could eventually be introduced into the USCL list and that improving long-term collection rates will likely be necessary to meet statewide plastic recycling goals. As such, CAA will work with Oregon processing facilities to review strategies for management of PE film as well as adding non-PE films over time. Assessment may include the implementation of research opportunities once the Program Plan period commences to better understand opportunities. Meanwhile, CAA also plans to further investigate the volume of PE film material flowing through depots, the commingled stream (as contamination) and specialized collection services to inform potential research and trials while meeting its obligation to ensure the disposition of this material to REMs. Aluminum Foil and Pressed Foil Products The Cascadia report provided no specific generation estimates for aluminum foil and pressed foil products. Estimates from other sources, including The Recycling Partnership (The Partnership), suggest 6,300 tons of residential material were generated in 2023. Based on The Partnership’s estimates for collection, corroborated by available information from Canadian depot programs, CAA estimates that approximately 390 tons of aluminum foil and pressed foil products will be collected through PRO depots (Cascadia’s report suggested only 50 tons may be collected as it is common for residents to place their aluminum foil products in their curbside container, but this figure seems too low). A general trend towards grocery products moving away from aluminum foil trays into polycoated boxboard formats may impact the volume of foil products generated over time. Less expensive, freezer-safe and microwave-safe, boxboard trays are increasingly replacing aluminum foil products. Provided that assumed participation rates remain the same, the estimate of collected tonnage may become aggressively high over time. Overall, the collection rate is estimated to be approximately 6.2%. An average of 2.254 tons are expected to be collected per each of the collection points in the network, at an estimated average of 1.23 pounds collected per participant per year. Block White Expanded Polystyrene (EPS) The Cascadia report suggests approximately 5,300 tons of foam polystyrene were generated in 2023. However, the report noted there was some downward pressure on EPS for generation. Using available data, adjusted for recent reductions in EPS usage suggests approximately 490 tons will be collected. This estimate is consistent with data available from depot programs in Canada. It should be noted that producers utilizing EPS packaging are under pressure to replace it because of the perception of its impact on ocean beaches and marine litter. EPS is being replaced by molded pulp forms, corrugated cardboard 63 circularactionalliance.org forms and expanded PE and PP foams. Therefore, the collection estimate may be on the high side if these other cushion packaging forms continue to make inroads. Overall, the collection rate is estimated to be approximately 9.2%. An average of 2.83 tons is expected to be collected per each of the collection points in the network, at an average estimated 1.55 pounds collected per participant per year. CAA will also be approaching enhanced recycling service programs, such as Recycle+, to offer management of those collected materials, like EPS, to ensure they are recycled by REMs. These volumes may also be included in the PRO annual recovery calculations. PE and PP Lids and Caps and HDPE Package Handles There is little available data on generation of these materials as typically both are part of a larger tubs and lids collection program in many jurisdictions. Based on 7.5% of the weight of HDPE and PP bottles, tubs and lids captured in selected Canadian programs, 290 tons are expected to be collected through the collection point network. Overall, the collection rate is estimated to be approximately 10%. An average of 1.676 tons are expected to be collected per each of the collection points in the network at an estimated average of .92 pounds collected per participant per year. DEQ has included PE and PP lids on the PRO depot collection list due in large part to sortation concerns (they are permitted on the USCL when screwed or snapped onto containers). Realistically, caps and lids will likely have low collection rates, given the time cost associated with households having to collect them and drop them off at designated depot drop-off points. However, CAA will ensure extensive education and promotional materials are distributed to direct people to take their caps and lids to local drop-off depots. CAA believes this material, inclusive of HDPE package handles, should eventually be introduced into the USCL list, as lids and caps that are screwed or snapped onto containers are already an accepted USCL material. CAA is in contact with an Oregon-based manufacturer of HDPE package handles that has completed further CRPF-focused studies since the rulemaking process. CAA proposes to discuss the findings of this new research with DEQ and Oregon CRPFs, as well as exploring other research needs, potential design improvements among producer members and ways of better communicating to residents once the Program commences, with a view to making the case for their inclusion on the USCL. Plastic Buckets, Pails and Storage Containers The Cascadia report does not provide categorization or other levels of granularity that produces a generation figure for plastic buckets, pails and storage containers. For purposes of projecting a collection target, it is assumed approximately 6,500 tons of this material are generated per year. Some of this material is likely currently found in curbside recycling loads in Oregon, but CAA will focus education on driving the right materials to depot locations. At depots, it is estimated that approximately 975 tons will be collected, although this estimate is higher than data available from depot programs in Canada. Overall, the collection rate is estimated to be approximately 15%. CAA expects 5.636 tons to be collected on average per each of the collection points in the network. An estimated 3.08 pounds per participant per year will be captured. 64 circularactionalliance.org Glass Glass currently collected in Oregon via separated curbside streams totals upwards of 38,000 tons annually. Additional glass bottles and jars are expected to be collected through new communities getting access to glass recycling. Many residents in more rural areas, or who self-haul in Oregon, already take glass to their local depots for recycling. Through an enhanced public education and promotion campaign, CAA estimates that an additional 3,100 tons of glass, for a total of approximately 41,100 tons will be collected through the network of collection points, and on-route collection where local governments choose to preserve those services (subject to negotiations between CAA and the local governments). This estimate is consistent with the estimates provided by Cascadia. Overall, with an estimate of 77,000 tons of glass available for collection, this translates to an estimated collection rate of 53%; eight percentage points higher than the required rate of 45% under the program. Challenges associated with glass contaminants in the commingled stream are well understood by CAA and will inform the education and outreach strategy. Given that glass bottles are used in food contact applications, relevant education and outreach will also address appropriate disposal practices in case of high levels of food contamination and will mirror that of delisted materials with similar use cases, such as aluminum foil. Supporting the Oregon statewide plastics recycling rate (ORS 459A.926) The state of Oregon has established a statewide recycling goal for plastic packaging and plastic food service ware, with targets of:  At least 25% by 2028  At least 50% by 2040 and in each subsequent year, and  At least 70% by the calendar year 2050 and each subsequent year The establishment of the statewide PRO depot network along with the USCL will significantly increase access and opportunity uniformly across the state for all Oregonians. The transportation reimbursement to local governments and their service providers will also serve as an economic equalizer across the state, addressing an existing and significant barrier to plastics recycling in more rural parts of Oregon. CAA expects the increase in access to recycling for a greater range of plastic products, coupled with the continued success of other recycling programs, such as OBRC, to allow the state to reach the first plastics recycling goal of 25% by 2028. 65 circularactionalliance.org c. Materials Strategy CAA acknowledges that specific materials need special attention and potential action to help in the achievement of this plan’s objectives and goals, as well as the goals of the RMA. These activities connect to the objectives relating to addressing packaging impacts, the expansion of recycling opportunities, the achievement of the plastics recycling goal, and the utilization of responsible end markets. Many CAA members have made significant investments to support the successful collection and recycling of certain materials nationally and, in many cases, in Oregon specifically. As CAA works to address packaging impacts, the expansion of recycling opportunities, and the achievement of recycling goals and targets, the organization is committed to further leveraging work being done by existing material-focused groups and organizations where applicable. Examples of this type of work include The Recycling Partnership’s PET Recycling Coalition and the Poly Coated Paper Alliance. It is a priority of CAA to avoid unnecessary duplication of efforts. CAA is also committed to exploring opportunities to achieve the broadest possible system benefits from any agreed and funded system interventions. For example, if any investments are made in CRPFs in Oregon, CAA proposes to work with CRPFs to agree when and whether these may stand to benefit more than one material category and evaluate fee structures to fund investments. In addition to the specific material actions identified below, CAA will continue to work with stakeholders in reviewing other RMA material issues and options. For example, CAA noted support in its Phase I RMA Rules submission for the inclusion on the USCL of PE and PP lids and caps and HDPE package handles. While CAA does not have a specific action plan in relation to these materials at the time of this submission, the group will continue to assess these materials and potentially other USCL additions with Oregon stakeholders in the context of other materials management discussions. All recommendations for the addition of other materials to the USCL or recommendations for trial assessments of other materials will be presented as program plan amendments within 2025. To effectively improve collection and recycling in Oregon in accordance with the RMA, several material- specific issues must be addressed. In this section, CAA reviews: 1. Proposed additions to the USCL 2. SIMS on the USCL 3. SIMS on the PRO Recycling Acceptance List 4. Proposals to engage on commingled collection of some materials on a trial basis 5. Initial plastic recycling rate projections 66 circularactionalliance.org i. Proposed Additions to the USCL Transparent Blue and Green PET Bottles Material Status DEQ only included clear PET bottles on the USCL. However, CAA understands from stakeholder discussions that transparent blue and green PET bottles are widely recycled and recommends that transparent blue and green PET bottles be added to the USCL by July 1, 2025. There is demand for transparent blue PET bottles, which reclaimers can use to counteract the gray color of rPET derived from clear bottles. CAA understands through discussions with industry stakeholders that transparent blue PET bottles are often combined with transparent green PET bottles with minimal impact on end-market suitability.6 Given that Oregon is a deposit state, with many transparent blue and green bottles collected for recycling via redemption centers, CAA anticipates that adding transparent blue and green PET bottles to the USCL will add a relatively small volume of material to CRPFs. Performance Against ORS Criteria Criteria Performance Consultations with reclaimers clarified that transparent blue and green PET bottles are routinely and successfully routed to established, stable end markets in the The stability, maturity, Pacific Northwest Region and other parts of the U.S. Also of note, APR and ISRI bale accessibility and viability of specifications7 are inclusive of transparent blue and green PET bottles with no responsible end markets limitations on either. CAA will monitor and consistently engage with reclaimers to understand and will assess how to address any issues that arise in processing or marketing this material. Environmental health and Transparent blue and green PET bottles do not present any immediate or safety considerations substantial health and safety concerns on the health or safety of CRPF operators. The anticipated yield loss Yield loss for transparent blue and green PET bottles is not significantly different for the material during the than the yield loss during reclamation of clear PET bottles, which can be minimized recycling process by optimizing equipment and processes. 6 Interviews with ORPET and email exchange with NAPCOR, APR, and The Recycling Partnership. 7 APR’s model bale specifications for PET bottle with PET thermoforms and APR and ISRI’s model bale specifications for PET bottle bales without PET thermoforms states that transparent green and transparent blue PET are an acceptable part of a model PET bale. See APR’s Model Bale Specification: PET Bottles (No PET Thermoforms), APR’s Model Bale Specification: PET Bottles with PET Thermoforms, and ISRI’s Bale Specification: PET Bottles (No PET Thermoforms). Documents accessed on 02/22/2024. 67 circularactionalliance.org The material’s compatibility Transparent blue and green PET bottles are already collected and sorted with existing recycling successfully from commingled streams in Oregon. infrastructure There is little available data on the generation of transparent blue and green PET The amount of the material bottles relative to clear bottles. Industry sources indicate that between 5 and 15% of PET bottle bales are transparent blue and green bottles. Some major beverage available industry companies are switching some historically transparent green bottle brands to clear, which may reduce the fraction of transparent green over time. Optical sorting equipment at CRPFs will effectively sort transparent blue and green The practicalities of sorting bottles with clear bottles, and typically the material is stored and baled together. PET recyclers might then sort PET by colors according to the different end use and storing the material applications such as bottle (requires clear material) or strapping (using green materials.)8 There are likely no contamination issues that are specific to the acceptance of Contamination transparent blue and green PET bottles. In fact, industry specification standards accept transparent blue and green PET materials.9 The ability for waste generators to easily identify Transparent blue and green PET bottles are easily identifiable by waste generators. Transparent green and blue PET lookalikes made of other resins are also and properly prepare the uncommon. material The existing market economics surrounding PET bottle recycling account for the Economic factors value of transparent blue and green PET bottles and have demonstrated a viable amount of economic productivity. Environmental factors from N/A a life cycle perspective Table 6 8 APR’s model bale specifications for PET bottle with PET thermoforms and APR and ISRI’s model bale specifications for PET bottle bales without PET thermoforms states that transparent green and transparent blue PET are an acceptable part of a model PET bale. See APR’s Model Bale Specification: PET Bottles (No PET Thermoforms), APR’s Model Bale Specification: PET Bottles with PET Thermoforms, and ISRI’s Bale Specification: PET Bottles (No PET Thermoforms). Documents accessed on 02/22/2024. 9 https://plasticsrecycling.org/images/Markets/APR-BaleSpec-PETBottle-WithThermoforms.pdf 68 circularactionalliance.org ii. Proposed Future Additions to the USCL through Forthcoming Program Plan Amendments In addition to taking steps to establish universal adherence to the currently approved USCL, CAA is proposing pathways for some other materials to be added to the USCL. CAA will put forth plan amendments for materials to be added to the USCL. Amendments will occur within 2025. In the meantime, CAA is issuing the following sections to signal such future action. The team has performed qualitative research to inform this section of the program plan, including interviewing CRPFs and reclaimers. This section of the program plan reflects information gathered through that qualitative research. PET Thermoforms Material Status Some PET thermoforms have not been included on the USCL, and DEQ has classified them as a SIM. CAA intends to take steps that will justify the addition of those PET thermoforms to the USCL list, which, in turn, will encompass CAA’s obligations to address the concerns raised by Oregon DEQ via the SIMS list. CAA proposes that appropriate actions be taken to include PET thermoforms on the USCL by December 31, 2027. This program plan signals a forthcoming proposal by plan amendment to add PET thermoforms to the USCL. DEQ’s overall material collection determination has kept PET thermoforms off both the USCL and PRO depot lists, meaning these materials will not be collected as a part of curbside commingled streams. However, studies across the country find that even when not accepted as a part of curbside commingled collection, thermoforms can make up to 10% of an average PET bale.8 Receiving more specific resin or format detail from DEQ’s inbound composition data will help CAA understand the current volumes of PET thermoform materials entering CRPFs. To minimize the loss of this thermoform material to CRPF residue or other inappropriate bales, CAA will engage with CRPFs to implement sorting practices that route this material to proper bales and to facilitate solutions to any related market issues. Under CAA’s proposal, PET thermoforms would ultimately be collected statewide as part of commingled curbside streams and would be processed and sent to responsible end markets (REMs) by CRPFs. In the interim, CAA will engage with the specialized subscription-based collectors of PET thermoforms and CRPFs to understand the volumes and processing picture for those materials – and to ensure REMs are being utilized. Performance Against ORS Criteria Oregon DEQ excluded PET thermoforms from the USCL based on a set of key criteria in ORS 459A.914(3). Chief among DEQ’s concerns is a lack of consistent, responsible end market demand for the material, which in turn has caused limited CRPF acceptance and inclusion in curbside programs. The table below provides 69 circularactionalliance.org information to address the key challenges for PET thermoforms, referencing the specific determination criteria outlined in ORS 459A.914(3). The information has been gathered through ongoing research and engagement with a wide range of stakeholders involved with PET thermoform recycling issues (more details can be found in Appendix D). 70 circularactionalliance.org Criteria Performance Reclaimer investments and interest in PET thermoform recycling are dynamic and growing, with regional end markets available to Oregon CRPFs and new markets actively developing. CAA will explore the market interventions that may be necessary to facilitate getting PET thermoforms to responsible end markets. The stability, maturity, CAA also acknowledges the role it may need to play in directing existing PET accessibility and thermoform collection (e.g., via specialized collection services) to REMs while PET viability of responsible thermoforms remain non-USCL materials. end markets Further, CAA notes there currently is market demand for thermoform-derived rPET (most prominently by berry company Driscoll's) that ostensibly exceeds the current supply of rPET derived from thermoforms. More producers and converters may join this existing end user in demanding thermoform-derived rPET. The details of this demand scenario and its impacts on reclaimer investment and active sourcing of thermoform material from CRPFs is one element of CAA’s overall PET thermoform plan, and CAA will continue to explore market realities. PET thermoforms do not present any immediate or substantial health and safety Environmental health concerns to the recycling process. Concerns with PET thermoform reclamation include and safety water usage and wastewater management. CAA proposes to examine water considerations consumption in PET thermoform reclamation as part of its REM verification and, as needed, develop interventions to reduce water consumption and improve usage of best practices in wastewater treatment. Yield loss during reclamation includes both the intended removal of non-PET materials and the unintended loss of PET. The removal of non-PET items during pre-sorting at the The anticipated yield reclaimer causes an unavoidable simultaneous loss of erroneously removed PET. Both loss for the material forms of yield loss at pre-sorting can be minimized by implementing more effective during the recycling sorting equipment and procedures at CRPFs. Reclaimers also experience loss of PET due process to the generation of fines, which tends to be greater in PET thermoform reclamation than PET bottle reclamation. Reclaimers can minimize yield loss due to fines generation by implementing best practices and optimizing equipment and processes. To date, only two Oregon CRPFs are accepting and marketing PET thermoform material gathered through specialized collection programs separate from curbside commingled The material’s collection, with one other recycling services company receiving and marketing PET compatibility with thermoform material collected at retail locations. The current lack of acceptance in existing recycling municipally managed collection programs is a result of a historical lack of scaled end infrastructure market demand, which has only recently begun to improve. CAA proposes to address the nexus of CRPF acceptance/reclaimer demand with the goal of creating the condition for universal collection. The amount of the Information submitted by various stakeholders in Oregon’s rulemaking and material material available assessment processing solidly documents the established, scaled presence of the PET thermoform material in the packaging stream. The practicalities of PET thermoform sortation and storage at CRPFs is an established practice, most sorting and storing the prominently in California. CAA proposes to explore the need for CRPF investment in this material equipment and to facilitate this as appropriate. 71 circularactionalliance.org Contamination results from mistaken public recycling of lookalike materials and design issues with PET thermoforms, including the use of recycling-incompatible glues and Contamination labels. An additional challenge can arise from residual food waste on PET thermoforms. CAA proposes to develop mechanisms to address and minimize all these challenges through education and outreach efforts. The ability for waste CAA proposes to develop mechanisms designed to reduce the presence of lookalikes in generators to easily the packaging stream (without creating adverse environmental impacts) as well as clear identify and properly education to help generators correctly identify the materials that should be placed in prepare the material commingled recycling. This is another area in which detailed DEQ data on resin/format materials inbound to CRPFs will be very helpful in addressing the issue. While there are no direct measurements of PET thermoform value marketed by CRPFs, PET thermoform bales marketed by California MRFs have consistent positive value, as demonstrated by RecyclingMarkets.net. Similarly, Plastic Recycling Corporation of California (PRCC)’s website indicates thermoform-only bales trade at positive value and that B grade bales with thermoforms trade at a slightly lower rate than B grade bottle Economic factors bales (3 cents/pound difference in August 2024).10 If this value translates to Oregon when PET thermoforms are collected and processed, it could improve the current “blended value” of all processed materials. CAA proposes to develop market-related mechanisms that will help to guarantee the value of PET thermoform material to CRPFs. Once established in collection, CAA’s PCRF payments will help support PET thermoform sortation and marketing. Environmental factors from a life cycle N/A perspective Table 7 CAA submits that PET thermoforms have a positive trajectory in relation to the challenges detailed above and that concerted action to be further described in a subsequent plan amendment will encourage that trend, thus facilitating the addition of PET thermoforms to the USCL. Interim Preceding Program Plan Amendment Steps and Timeline for PET Thermoform Inclusion on USCL As part of its pending plan amendment, CAA will continue to take the following steps to facilitate inclusion of PET thermoforms on the USCL: 1. Explore providing technical and financial assistance to CRPFs to receive and sort PET thermoforms for shipment to responsible end markets 2. Explore mechanisms to facilitate end market demand for PET thermoforms to ensure that all CRPFs gain the continuous ability to send PET thermoforms to REMs 10 Based on values indicated on https://prcc.biz/pricing/ accessed on February 5, 2024. 72 circularactionalliance.org 3. Research and identify mechanisms to address design issues that hinder PET thermoform recyclability With the implementation of the action steps outlined above during the first Program Plan, supported by the forthcoming plan amendment, CAA proposes that PET thermoforms can be considered for addition into USCL on December 31, 2027. In the interim, CAA will explore ways to direct current thermoform collection (e.g., via specialized collection services) to CRPFs with existing sortation capabilities to concentrate the flow of materials and facilitate disposition of these material to REMs. CAA financing for activities related to the potential inclusion of PET thermoforms that are currently not accepted for recycling will be managed through the collection of fees applied to these materials. This fee setting principle will be applicable to material management development costs associated with other materials. CAA will allocate specific material development costs to those specific materials through the fee setting process. Spiral Wound Containers Material Status This section was removed. CAA will submit a program plan amendment in the future to propose the addition of spiral wound containers to the USCL when CAA can get clear confirmation that local end markets include spiral wound containers as part of their bale specification. iii. Specifically Identified Materials on the USCL Some materials that are included on the USCL are also considered SIMs by DEQ. As these materials will require particular attention, CAA proposes implementation of the following strategies outlined in the following subsections by material type to address relevant recyclability challenges. As part of CAA’s overall plan for education and outreach, local governments and their service providers will have the ability to customize education and outreach materials via CAA’s education and outreach portal, enabling them to plan, design and deliver phased messaging related to SIMs collection in their communities. As the USCL evolves, CAA will develop and make available specific assets to support the education and outreach for each SIM, which may include, but will not be limited to, sample text and imagery for use in customized collateral, text and visual messaging for social media, newsletters, and websites. Polycoated Gable-Top Cartons and Aseptic Cartons CAA acknowledges that polycoated gable-top and aseptic cartons have been identified as a SIM in addition to being included on the USCL. Currently, it is estimated that about half of Oregon households are served by 73 circularactionalliance.org curbside and drop-off collection programs that include cartons11 and this will grow to all households with the implementation of the RMA. It is CAA’s understanding that Oregon’s CRPFs currently include cartons in mixed paper bales and do not sort cartons into a separate PSI 52 grade bale. To date, CRPFs have not seen the value in marketing cartons separately from mixed paper. Processing and Marketing Challenges CAA aims to address issues associated with processing and marketing of this material by engaging with key stakeholders, as well as identifying logistical issues that CAA can play an active role in resolving. CAA proposes to work with CRPFs to explore the barriers they face in sorting and/or storing cartons and work with interested producers and associations, such as the Carton Council of North America, to review funding options for any necessary incremental infrastructure. CAA will explore potential market interventions that could be used to improve the marketability of materials like cartons. One example of a market intervention could be offering a marketing service for cartons, which would be voluntary for CRPFs that elect to take advantage of it. For example, CAA would collect carton bales from individual CRPFs on a pre-agreed cadence, consolidate them into truckload quantities, and market them. CAA would then compensate CRPFs for the tons marketed. This could be based on the Pacific Northwest index price for PS54 Mixed Paper as reported on RecyclingMarkets.net’s Secondary Materials Pricing (SMP). In exploring these options, CAA will ensure materials are routed to responsible end markets and will consider adjustments to its producer fees to provide any necessary funding. Nursery Packaging CAA acknowledges DEQ’s recommendation to place all nursery packaging in the SIM list while designating only HDPE and PP-made nursery packaging as material approved for curbside commingled collection with inclusion on the USCL. CAA has held stakeholder consultations with a collection service, CRPFs and reclaimers to understand the contamination risk posed by nursery containers and to outline the role of the PRO in processing and marketing these materials to ultimately reduce contamination. Education and Outreach CAA recognizes that the USCL status recommended for HDPE and PP-based nursery packaging will require the program plan to account for communities that may not have collected these pots and trays thus far. Education and outreach will aim to minimize contamination, in particular from problematic PS nursery packaging. To accomplish this, CAA proposes to: 11 Carton Council of North America. “Oregon RFI Response,” March 20, 2022. 74 circularactionalliance.org  Explore the need to gather data on which communities in Oregon, prior to July 1, 2025, collect nursery packaging and which ones don’t. When done for nursery packaging, data will try to capture the number of communities that collect/do not collect the material, quantities and seasonal trends in the generation of this material as a curbside recyclable, and extent of contamination from PS lookalikes. Similar data collection exercises will be explored for all SIM materials  Explore opportunities for reuse and recycling of this material at Oregon-based nurseries and explore ways for CAA to leverage this information in its education materials, prioritizing options for reuse wherever possible  Identify and segment communities in Oregon based on those that are most acutely affected by nursery packaging’s inclusion in the USCL. This segmentation could be based on the determination of which communities have accepted nursery packaging prior to July 2025 and which ones have not  Recommend a phased messaging and timeline to account for the segmentation. For communities where curbside collection of nursery packaging is set to start in 2025, the focus will be on informing households of the availability of commingled curbside collection of nursery packaging. For households already participating in curbside collection of nursery packaging, the focus will be mitigating contamination  Determine a suitable strategy to communicate to waste generators how to identify recyclable nursery packaging (HDPE and PP-based pots and trays) from contaminants (lookalikes). All information will be provided in language and imagery that is clear and jargon-free.  As a first step, CAA will continue to investigate the scale of the contamination issue from PS lookalikes in the recycling stream through conversations with CRPFs. Preliminary engagement findings can be found in the “Processing Improvements” section below. Using The Recycling Partnership’s National Recycling Database, CAA was able to map communities in Oregon that currently list nursery packaging (pots or containers and trays) as an accepted material for recycling. In total, nursery pots are listed as accepted by 36 out of 106 communities in Oregon (see Figure 4(a)). Nursery trays are listed as accepted by two out of 106 communities. Figure 4(a) Figure 4(b) 75 circularactionalliance.org Figure 4: Community acceptance map for (a) nursery pots and (b) nursery trays as accepted materials. Green dots represent communities that have listed these materials as accepted. Red dots indicate communities that do not list these materials as an accepted material on their community websites. Source: The Recycling Partnership’s National Recycling Database (accessed August 5, 2024). CAA’s plan for education and outreach will offer community managers resources that will help them customize collateral. These resources will allow community managers to build informational flyers on materials that will be accepted for curbside collection. CAA will use information on community acceptance of nursery packaging to determine where to deploy collateral. Processing Improvements In order to understand current practices for processing nursery packaging and reducing contamination, CAA engaged with an Oregon-based collection service, James Recycling, as well as a number of Oregon CRPFs and reclaimers. A key finding of this outreach was that CRPFs largely hand sort large nursery containers into bulky mixed rigid bales. Reclaimers such as EFS that work closely with Oregon CRPFs did not find the presence of PS nursery packaging to be a detriment, as they are successfully able to sort them out and retain the PP nursery packaging. CAA further noted that reclaimers typically receive nursery packaging in bales of #1-7, #3-7 and #5 plastics and have the technical capability to successfully sort out contamination from PS and LDPE nursery containers. Contamination from PS is minimal and in the form of seedling trays, as shared by James Recycling, who noted that they largely receive HDPE and LDPE nursery containers. LDPE containers are further recovered, as noted by EFS, and worked in PE rigid resins. Furthermore, reclaimers did not find that carbon black as a colorant in nursery containers was a deterrent to either sorting or finding end markets. iv. Specifically Identified Materials on the PRO Recycling Acceptance List Steel and Aluminum Aerosol Containers CAA recognizes that steel and aluminum aerosol containers have been designated as a SIM and will be removed from curbside commingled collection, primarily in the Portland Metro area. Aerosol containers have thus far been collected in many Oregon communities, making education and outreach an important component of the program plan for these materials. CAA has performed practicability studies, in accordance with OAR 340-090-0670(5)(c)(A), and determined that managing aerosols with residual product according to the performance standard exceeds the societal benefit calculations of the practicability test. CAA proposes the PRO only manage empty aerosols, will direct residential and small-scale generators to alternative management options. 76 circularactionalliance.org Residents’ education will include awareness about emptying aerosol containers and referring residents to household hazardous waste programs when needed. CAA proposes to:  Segment Oregon communities based on whether they have had curbside commingled collection of aerosol containers or no collection prior to July 2025  Recommend a phased education and outreach messaging and timeline to account for the segmentation. Provide text and visuals for use in customizable educational collateral via CAA’s education and outreach portal for communities to build awareness among residents of how to recycle empty aerosols and how residents and small-scale generators should manage aerosols with residual contents, taking them either to a household hazardous waste collection program or disposing of them in the garbage. Subject to member alignment on relevant fee implications, CAA proposes to consider continuing to engage in systemic changes to minimize hazard potential and perceptions of aerosol containers and to improve the recyclability status of this material. These may include:  Work with the U.S. Aerosol Recycling Initiative, led by the Can Manufacturers Institute and Household and Commercial Products Association, along with Portland metro local governments, to learn more about aerosol manufacturing, consumer and end markets, and recycling  CAA signals its plan to propose on-ramping empty aerosol containers to the USCL in a forthcoming program plan amendment Aluminum Foil and Pressed Foil Products CAA acknowledges the addition of aluminum foil and foil products to the list of SIMs. Oregon DEQ cited reasons for this designation that include concerns around food contamination, ability to sort due to the material’s flat shape, and realities of smelter yields. CAA’s interventions will focus on developing a suitable education and outreach strategy that will encourage residents to recycle these products at appropriate depot drop-off points and reduce the occurrence of these products entering the commingled stream as a contaminant. CAA will continue to explore paths for this material to be included on the USCL in future program plan periods. A key challenge will be instigating a change to the long-standing practice of collecting this material curbside in parts of the state while simultaneously creating outreach materials that inform residents of appropriate depot locations. CAA’s education and outreach plan addresses with this via customizable materials for each community. CAA’s approach to developing this strategy will include the following steps:  Segmentation of Oregon communities based on whether they have had curbside commingled collection of aluminum foil and foil products in the past or no collection prior to July 2025. Communities that have historically treated foil as a curbside commingled collection material are likely to be most acutely impacted by this change, requiring the education and outreach strategy to minimize contamination from this group 77 circularactionalliance.org  Consider targeting specific communities across Oregon for outreach on depot collection points for aluminum foil and foil products  Given that aluminum foil and foil products are often used in food contact applications, CAA will provide clear and jargon-free key messaging that communities and haulers may use in their education materials to help explain how to properly prepare aluminum foil and foil products for recycling to prevent food contamination Shredded Paper Shredded paper is on the PRO Recycling Acceptance list and has been designated a SIM. Much like aluminum foil, shredded paper has been collected by communities in Oregon and the de-listing of this material from collection lists will impact the residents of those communities. Education and outreach will be the primary intervention for shredded paper and will mirror that of other de-listed materials such as aluminum foil. Using The Recycling Partnership’s National Recycling Database, CAA was able to map communities in Oregon that currently list shredded paper as an accepted material (see Figure 5). To this end, eight out of 106 communities currently list shredded paper as an accepted material for recycling. CAA will provide local governments and their service providers access to customizable collateral that they can use to direct waste generators toward shredded paper drop-off points and to discourage placing shredded paper in the commingled stream. Figure 5: Community acceptance map for shredded paper. Green dots represent communities that have listed this material as accepted. Red dots indicate communities that do not list this material as an accepted material on their community websites. Source: The Recycling Partnership’s National Recycling Database (accessed August 5, 2024). 78 circularactionalliance.org Glass Bottles and Jars CAA acknowledges DEQ’s decision to include glass bottles and jars on the PRO Recycling Acceptance list and classify them as SIMs. Glass bottles and jars are currently collected in some areas of Oregon as a separated curbside stream, and the communication necessary with respect to glass containers will be tailored to the outcome of discussions with local governments on the development of the collection system for PRO Recycling Acceptance List materials. Where local governments choose to discontinue existing on-route collection systems for glass, CAA will provide local governments and their service providers access to customizable collateral that they can use to direct residents toward glass drop-off and discourage placing glass in the commingled stream. As detailed in the PRO Recycling Acceptance list section of this plan, CAA anticipates that a mix of curbside and depot glass collection will support the achievement of the glass collection target. Using The Recycling Partnership’s National Recycling Database, CAA identified and mapped 76 communities that accept glass bottles and jars as per the community acceptance lists published by them. While a majority of these communities fall in the Portland Metro area (that will continue accepting glass bottles and jars curbside), there are communities spread across Oregon that CAA will need to work with to determine if they would like to maintain curbside glass collection or transition their community to depot collection points. Figure 6: Community acceptance map for glass bottles and jars. Green dots represent communities that have listed this material as accepted. Red dots represent communities that do not list this material as accepted material on their community websites. Source: The Recycling Partnership’s National Recycling Database (accessed August 5, 2024). 79 circularactionalliance.org v. Variance Requests Similar to aerosols, CAA has performed a practicability test on the management of pressurized cylinders. CAA has determined management of pressurized cylinders far exceeds the societal benefit limit of the practicability test and will propose removal of this product from the PRO Recycling Acceptance List through a future program plan amendment. In terms of block white expanded polystyrene (EPS), CAA intends to request alternative compliance to the convenience standards in a future program plan amendment. CAA will propose to establish collection points in the Portland Metro and Eugene regions to serve as a starting point to establish the system for block white EPS, better understand the balance of generation between residential and commercial generators, and propose to run trials in other parts of the State in an effort to gather data on how the system might be most effectively developed. If DEQ ultimately grants the variances for aerosols, pressurized cylinders and block white EPS, CAA expects this to reduce the cost of managing these products according to the convenience standard by approximately $6 million. vi. Proposal to Trial Commingled Collection of Non-USCL Materials There are two material groupings that DEQ has designated as SIMS that are neither USCL nor PRO Depot materials. These are polycoated paper packaging and single-use cups. While these materials are not currently being recommended for inclusion on the USCL, CAA believes that to adequately address the challenges identified under the SIM designation, it is appropriate to explore commingled collection of these materials on a trial basis after program commencement, with a view to better understanding current generator behavior while at the same time working to understand and address other system barriers to the inclusion of these materials. CAA uses this program plan to signal forthcoming program plan amendments with details of the trials to take place for these materials. Polycoated Paper Packaging CAA acknowledges that polycoated and similar paperboard packaging have not been included on any collection list due to concerns surrounding their recyclability. DEQ noted challenges in both sortation and yield. On the issue of yield, DEQ has questioned whether these materials are effectively recycled by paper mills, if they are readily recyclable (e.g. polycoated paperboard vs. paperboard with wet strength), and if they showed a high rate of recovery. CAA also notes that DEQ requests that prospective PROs propose efforts to understand and address the impact of user behavior on CRPFs and end markets if polycoated paperboard packaging is collected as a part of commingled recycling. CAA posits that without collecting this material in a commingled curbside trial environment, once the USCL formally launches on July 1, 2025, it will be challenging to replicate these behaviors and impacts. Therefore, CAA proposes the use of commingled curbside trials after the 80 circularactionalliance.org commencement of the program period to address this material category’s SIM designation, while also exploring future paths to the USCL. CAA will continue to engage with producers who have expressed interest in public comment and those who have relevant data to further inform the trial plans. In order to meet DEQ’s expectations for this material, CAA proposes conducting time-limited, geographically-bound commingled collection of these materials to derive real-world, actionable insights:  The trial(s) will primarily aim to understand resident behavior, notably waste generators’ ability to differentiate recycling information on polycoated paperboard, polycoated paper cups, and cartons. Currently, these trials are though tot include all food serviceware (e.g. cups, paper plates, to go boxes, etc.). Education and outreach tactics will be deployed to communicate the appropriate actions to both residential and non-residential generators The trial(s) will aim to understand the nature and quantities of polycoated paper generated, as well as an initial estimate of the quantities of these materials that end up in mixed paper bales. To scope and plan these trials in the right geography, CAA will research regions where variables and metrics that could affect results are strongly controlled. Ideally, CAA would target trial regions where willing local partners have:  Strong, stable control or influence over accepted materials lists  Consistent service populations that can be successfully engaged with highly targeted education information  Consistent flows of collected materials to specific CRPFs  CRPFs that are willing and able to participate in the trial to track materials to bales  Responsible end markets willing to participate in the trial to test yield and other factors CAA proposes to work with relevant stakeholder partners (DEQ, local governments, CRPFs, haulers, and end markets) prior to any trials to develop a detailed project plan for execution factoring in the following considerations:  Goals and objectives of trials  Timing and duration  Stakeholder partners  Geography (communities potentially impacted)  Logistics of franchised hauling  Resident education (what are the related baseline education materials and how will this work within the broader education and outreach plan)  Costs associated with the proposed trial The trials would aim to track materials very specifically from route to bale to market and ensure no other material changes to the stream or service changes are happening at the same time. 81 circularactionalliance.org In addition, CAA proposes to address concerns surrounding stability, accessibility, and viability of end markets for this material by engaging with CRPFs and end markets to understand an acceptable proportion of this material that will not adversely affect end market applications. Currently, some processors can handle up to 20% of polycoated paperboard (including polycoated cartons and aseptics) in mixed paper bales.12 CAA proposes to explore options to model the proportion of polycoated paperboard currently in mixed paper bales and study the implications of an increase. An in-depth CRPF study could entail examining CRPFs that sort polycoated cups into mixed paper bales separately from those that sort cups into grade 52 carton bales. Such studies could further entail downstream market research for mixed paper bales with polycoated cups. Furthermore, CAA recommends assessing the re-pulpability yield of mixed paper trials. This could potentially include assessing specific packaging structure potential re-pulpability yield to inform education and outreach. Single-Use Cups DEQ has excluded single-use PP and PET clear cups from recycling collection lists due to contamination concerns. DEQ stated that the inclusion of single-use cups in acceptance lists may introduce contaminants like trays, clamshells, plates, and food waste, as well as contamination from PVC and PS lookalike packaging. CAA further notes DEQ’s request to propose efforts to understand and address the challenges this material poses to the recycling system. CAA proposes no change to the SIM designation for single-use cups and proposes to conduct a trial study to better understand user behavior and to investigate the challenges single-use cups pose to the recycling system. CAA proposes that the limited time, geographically bound trial(s) be conducted after the program period commences in July 2025. CAA will continue to engage with producers who have expressed interest in public comment and those who have relevant data to further inform the trial plans. CAA uses this program plan to signal a forthcoming program plan amendment with details of the trials to take place. Prior to the trials, CAA will work with relevant stakeholder partners (DEQ, Communities, CRPFs, haulers, end markets) to develop a detailed project plan for execution factoring in the following considerations:  Goals and objectives of trials  Any material overlaps (example, polycoated paper cups that may fall into both categories) and how to deal with these  Timing and duration  Stakeholder partners  Geography (communities)  Logistics of franchised hauling  Resident education 12 Based on consultation with a key stakeholder processing mixed paper bales. 82 circularactionalliance.org  Costs associated with trial The geography of the trials will be determined in a similar manner as for polycoated paperboard packaging as detailed in the above section. In addition, CAA proposes to address information gaps and concerns surrounding single-use cups. For example, the organization could engage CRPFs and reclaimers receiving single-use cups to understand the extent of yield losses expected with these materials. Additionally, CAA proposes to examine the extent of contamination introduced from lookalikes made of PS and understand challenges this may create during the processing of this material. vii. Initial Plastic Recycling Rate Projections This section of the plan provides an estimate of the current plastics generation and recycling rate in Oregon using preliminary data made available to CAA by DEQ. CAA will adjust this plan through plan amendments once DEQ releases final data on waste composition and inbound CRPF tonnages. CAA uses the current preliminary rate estimate below to project the gap between the current rate and the 2028 recycling target of 25% laid out in the RMA. We outline the elements of this plan that can be expected to contribute to achieving the goal and some preliminary estimates of new recycled tonnage for at least some of the elements. As CAA refines these elements in plan amendments, it will adjust the projected impacts on new plastics tonnage and their contributions toward the plastic recycling goal. Preliminary Plastic Recycling Rate Estimates Oregon DEQ has provided CAA with preliminary data estimating the plastics recycling rate. The data combines analysis from the ongoing DEQ waste composition analysis and recycling tonnage data from DEQ’s Material Recovery Survey process to produce both a numerator and denominator for the rate calculation. Table 8 below shows this calculation using summary figures. The table shows two scenarios for the rate: one for if garbage bags are included in the denominator and one for if they are excluded. Garbage Bags In Garbage Bags Out Disposed tons 241,069 220,351 Recycled tons 40,535 40,535 Current baseline recycling rate 16.8% 18.4% Table 8 Using the figures above in Table 8 and assuming there is no substantive change in generation, it is also possible to project the necessary additional annual tonnage that would need to be recycled to meet the 25% goal. Table 9 provides these estimates. Garbage Bags In Garbage Bags Out 83 circularactionalliance.org 2028 projected tons generated 241,069 220,351 Recycled tons needed to meet 25% target 60,267 55,088 Difference between current recycling baseline 19,732 14,553 and target tonnage Table 9 Table 9 shows that between 14,533 and 19,732 tons of additional tonnage would need to be recycled to meet a 25% recycling goal in 2028. Table 10 below shows some additional detail on DEQ’s recycled data to help guide planning on the kinds of materials that may be currently under-recovered. When the substantial amount of deposit recovered material is figured into this analysis, it shows the amount of rigid plastic containers recycled in Oregon to be a very low tonnage, which indicates improvements in rigid plastic container recycling could be critical to meeting the 2028 goal. Packaging Material Recycled Tons Deposit recovered rigid plastic 17,261 containers Non-deposit recovery portion of 12,184 RPCs Film plastics 6,865 Other plastics 4,225 TOTAL 40,535 Table 10 Table 11 combines the detailed categories of plastics packaging and food serviceware from DEQ’s preliminary waste composition data with DEQ’s preliminary data on tonnages inbound to CRPFs. Combining these two datasets allows CAA to estimate current capture rates for select specific categories of plastics material, which then helps identify the relative opportunities for increased plastics recycling across those categories. The categories are ranked in descending order by their “ostensible capture rate.” Tons disposed Inbound Ostensible Material in landfills 2023 CRPF figure capture rate No-deposit plastic beverage bottles 4,222 4,917 54% Very large plastic bev. bottles > 5 gal 25 20 44% Other plastic bottles 8 oz to 5 gallons 11,428 5,820 34% Curb-OK plastic tubs, pails 8 oz to 2 gal 2,303 908 28% Small tubs 6+oz but <8 oz 620 198 24% Plastic grocery/merchandise bags 2,922 418 13% Not curb-OK plastic tubs, pails 8 oz to 2 gal 26,393 3,735 12% Very small plastic bev. bottles 6 oz to < 8 oz 215 26 11% >2-5 Gal. Buckets/flower pots 9,207 972 10% Other rigid plastic packaging 17,191 1,079 6% 84 circularactionalliance.org Block foam packaging 10,992 476 4% Rigid plastic FSW excl RPC, cups 4,550 155 3% Plastic other recyc. polyethylene film PKG+FSW 35,631 1,286 3% Plastic beverage pouches 313 9 3% Plastic other nonrecyclable film PKG+FSW 43,320 1,213 3% Bulky rigid plastic packaging 6,660 146 2% Rigid mixed plastic/matl PKG+FSW 229 1 0% Table 11 Table 11 shows that capture rates for some very important large-volume plastics categories are low and are important targets for increased recycling tonnages. For example, although more than half of “no-deposit beverage bottles” are captured, there is still substantial tonnage available in the disposed stream, as is also true for “other plastic bottles,” which are captured at 34%. Other substantial targets include “non-curb OK plastic tubs, pails 8 oz – 2 gal” and “other rigid plastics packaging.” Although DEQ’s preliminary data does not break down these categories by resin type, it indicates that plastic recycling could be improved through the inclusion of polypropylene containers to the USCL and by the potential addition of PET thermoforms to the USCL, as proposed in this plan. “Bulky rigid plastic packaging also appears to demand attention, and successful high rates of collection for two of CAA’s depot materials - block foam packaging and recyclable polyethylene film – could contribute substantially toward a higher overall plastic recycling rate. This plan includes elements that are expected to result in more recycled plastic, thus allowing Oregon to meet its plastics recycling target. At a very general level, with a great deal of uncertainty as to the true potential of each of these elements to contribute additional tons, Table 12 displays many of the main elements and, where possible, provides preliminary estimates on how much new plastics tonnage would be recycled. 85 circularactionalliance.org Plan Element Notes on Potential Impact Expand curbside, multifamily, CAA funding and support of local government requests for new collection and small commercial infrastructure should result in the collection of additional plastics. Projected recycling access through local tons are difficult to estimate without more data on the number of generators government needs who will receive new service, their generated tonnage, and anticipated assessment requests participation and participant capture rates. Enhance collected material As collection programs add new plastic materials to meet the USCL requirements, it should result in more plastic tons. For example, new mix in local programs to meet polypropylene container collection from inclusion of the material in all USCL requirements collection programs statewide could amount to about 2,000 tons/year. Implement PRO depots that CAA will collect a range of plastic materials at new and existing depots. A collect specific plastics preliminary estimate of new plastics collection is 3,700 tons/year. Add PET thermoforms to the CAA is proposing to add PET thermoform packaging to the USCL by December 31, 2027, at which point thermoform collection could provide as much as 2,700 USCL and local collection new plastics tons per year toward the plastic recycling goal. PCRF and CMF payments, along with regulatory mandates to improve capture rates and bale quality, are expected to reduce plastic material disposed at Enhance plastics capture at CRPFs and increase tonnage recycled. It is difficult to project the associated Commingled Recycling tonnages without more direct engagement with individual CRPFs. DEQ’s Processing Facilities preliminary data on CRPF inbound tonnages and capture rates indicates as much as 4,000 tons of additional plastics could be diverted from CRPF disposal or mis-capture into properly captured materials. CAA’s educational efforts and coordination with local recycling programs and Improve recycling franchised haulers may include specific efforts to raise participation and participation and participant plastics capture rates. It is difficult to project the amount of new tonnage that capture rates in collection could be expected from educational efforts without more specific data from programs local programs and haulers on current participation and participant capture rates, but new tonnage could be as high as 2,000 tons per year. Table 12 In summary, using preliminary DEQ data, CAA has provided in this section a preliminary calculation of the baseline generation and recycling tonnage subject to 2028 plastic recycling rate target in Oregon and has identified the plan elements that will help achieve the target. CAA will adjust its plan as DEQ provides final data and as more details on plan elements are determined. Implementation of the plan will also provide new data that will allow CAA to adjust its strategies. viii. Ensuring Responsible End Markets CAA will ensure that covered materials and contaminants collected with covered materials are managed and disposed of in a manner that aligns with Objective 1 of the program plan (Reduce the negative environmental, social, and health impacts from the end-of-life management of products and packaging). An important component of this management strategy is the transfer of such materials to responsible end markets (REMs). 86 circularactionalliance.org 87 circularactionalliance.org Example End Markets Based on discussions with CRPFs, CAA anticipates that most covered materials collected for recycling under the RMA program will be processed in North America, with the exception of:  Mixed paper  Aseptic and gable top cartons (a mix of North American and overseas markets)  Expanded polystyrene protective packaging (block white EPS) Based on industry knowledge, CAA team expertise, and discussions with CRPFs, an initial assessment of the entities that could potentially use materials collected in Oregon range between 130 and 150 entities, excluding plastic converters. Examples include:  OCC and Mixed Paper: NORPAC, Pratt Industries, Nine Dragons (China, Vietnam and the U.S.)  HDPE: Denton Plastics  Mixed Plastics: Merlin Plastics, EFS-Plastics  Cartons: Kimberly-Clark de México, Sustana Fiber, Great Lakes Tissue, Daewang Paper (South Korea)  Glass: Glass to Glass  Polystyrene: Intco (China) For commodities processed overseas (e.g., mixed paper), CAA will work in close collaboration with material brokers to ensure its obligation under ORS 459A.860 to 459A.97. For example, CAA will assist in getting the self-attestation forms from brokers’ clients. Verification of REMs Based on the feedback from DEQ and ORSAC, CAA has developed a detailed REM verification standard with specific criteria, performance indicators, and detailed non-compliance procedures. An overview of CAA REM Standard methodology is detailed in the sections below. It is important to highlight that the methodology presented here will be discussed and reviewed with end market entities and their trade associations before program plan implementation. CAA also intends to test the proposed methodology with targeted end market entities. The review process and the field-test process are common practices in voluntary consensus standard development. Should those processes lead to adjustments in the methodology, CAA will make necessary adjustments and communicate those changes to DEQ via submission of a program plan amendment. The REM Standard will serve to transparently communicate adherence by end markets to the responsible requirements as set out in the RMA, provide public insight into non-compliance, and serve as an aligned methodology for third-party certification standards to adopt upon EQC approval and expansion in 2027. For the initial phase of REM verification, CAA intends to partner with a third-party certification scheme owner to ensure CAA can effectively adapt the proposed methodology, ensure consistency of auditing and 88 circularactionalliance.org reporting in the initial phase, and prepare for integration with multiple certifications when they are independently available to end markets. CAA intends to partner with GreenBlue’s Recycled Material Standard (RMS) for this initial phase. During program plan development, CAA observed that RMS had developed a REM verification method that went beyond any other DEQ-benchmarked standards, was applicable to all covered materials, and met the management and governance requirements outlined in DEQ benchmarking of certification programs. CAA has leveraged the progress RMS has made in REM certification to ensure adequacy of its own REM Standard. CAA intends to uphold the requirement to validate all necessary criteria while avoiding having to replicate auditing REMs may have validated through other programs. CAA will use benchmarked comparisons with the REM criteria to identify duplicated criteria and notify certification bodies of reduced audit needs. Certification bodies will complete REM audits, using inputs from third party certifications to support auditing, and noting non-compliances in all areas if observed. REMs Verification Overall Approach CAA, in collaboration with RMS, has developed end market verification processes for Oregon and other jurisdictions where it has been designated as a PRO (Colorado, California). CAA’s verification approach was designed based on the principles of the International Organization for Standardization’s Guidelines for auditing management systems (ISO 19011) with input from the expertise of PROs active in other jurisdictions with similar REM verification requirements (including European PROs). CAA’s verification approach is a three- step process (see table below): 1. Initial screening (CAA and CRPFs) 2. Reporting review (CAA) 3. Entities verification (RMS and verification body) While CAA will manage the initial screening and reporting review, RMS will manage the verification of entities in Oregon. CAA and RMS will select Certification Bodies (CBs) to undertake the audit step, based on several criteria, such as:  Capacity to perform overseas audits (e.g., the verification body has local offices or agents in targeted overseas market) as well as North Americans audits  Experience auditing related standards to environmental performance, health and safety, traceability or chain of custody, and recycled material processing  Experience in chain of custody verification  Existence of policy for prevention of conflict of interests  Possesses adequate professional liability insurance  A proposal of standards to use to measure REM compliance  Cost of services  Willingness to allow CAA or certification scheme representatives to shadow on-site audits as needed 89 circularactionalliance.org  Employment of native speaking and literate personnel for geographies assigned to each audit CAA will also rely on DEQ endorsement of verification programs. CAA will also contract only with certification bodies that fulfill the requirements of ISO 17065 (Conformity Assessment – Requirements for Bodies Certifying Products, Processes and Services). 90 circularactionalliance.org Verification Action When Who Purpose Initial screening Immediately for each CAA and CRPFs • Obtain self-attestation form unverified end market (collaboration) • Pre-approve markets Data review Quarterly CAA • Detect any reporting anomalies • Calculate yield Entities verification Annually RMS and CBs • Verify compliance with proposed REM standard Table 13 Initial Screening Steps CAA will request end market entities complete self-attestation forms and submit several documents in order to be pre-approved. At a minimum, CAA will request end market entities provide operating permits and, in the case of overseas markets, import permits or authorizations. CAA will request environmental permits or licenses if applicable. A signed audit agreement will also be expected. CAA may request additional information and/or a meeting to clarify certain elements. CAA will request that end market entities list active certifications and/or verification related to recycling processes, facility management systems, or other elements covered by REM criteria. As detailed in section for temporary variance in verification (outlined later in the REM portion of the program plan), CAA will determine markets requiring a full REM audit or an approved variance request, reducing audit requirements:  For markets that have been verified by another PRO under another EPR program, CAA will plan to verify remaining elements of REM criteria  For markets that have obtained a relevant certification, CAA will plan to verify remaining elements of REM criteria  For landfills and disposal sites in the United States or Canada with a valid operating permit and documentation confirming lack of non-compliance, CAA will provide pre-approval Once the pre-approval is completed, all information will be transferred to RMS to manage the third-party audit assigned to the relevant certification body. While CRPFs are responsible for accessing self-attestation forms for USCL materials, CAA will offer to undertake that task on their behalf in order to avoid duplication of effort (e.g. reaching out to the same end market entities several times). Data Review Steps CAA will review the different data provided by CRPFs and end market entities through the service provider portal. On a monthly basis, CAA will perform a data reconciliation, followed by the detection of any 91 circularactionalliance.org anomalies in the data (e.g. significant increase in outbound quantities). While detailed data will be reviewed during the verification, at this stage the data will allow CAA to estimate preliminary recycling yields by facility. 92 circularactionalliance.org Entity Verification Steps Performed by selected Certification Bodies (CBs), the verification will be conducted for the impact areas identified in the following subsection. CBs will contact designated end market entities regarding the requirement to be audited and assignment by CAA. It shall obtain all the necessary information to complete the certification process, obtain a signed audit agreement (if not already provided), and reach agreement on the audit plan. It then shall conduct a review of the information obtained to ensure that:  The information about the client is sufficient for the conduct of the certification process  Any known difference in understanding between the certification body and the client is resolved  The means are available to perform all evaluation activities CBs will request documentation for review ahead of on-site audit. The on-site audit plan will be developed based on thoroughness and credibility of initial documentation supplied. Once the audit is completed, CBs will prepare the audit report, the certification decision, and findings review. It shall provide the client with formal certification documentation (pass or fail) and work with the certification scheme owner to update the certification database with end market’s information. Within a defined window as defined in the “Actions to Address Non-Compliance" section on page XX, it will send a corrective action plan for non-compliances to the entity with a timeline for response and amelioration of issues. The verification will also include a material tracking component, ensured by:  A Material Flow Management System that will be made available to the different stakeholders of the supply chain for their reporting obligation under the regulation (e.g. CRPFs quarterly disposition reports) and will ensure data confidentiality is preserved  A random bale tracking process, connected to the material flow management system, using chain of custody,  An agreement with brokers that will voluntarily collaborate with CAA to ensure they will provide the required information for verification Figure 7. Infographic visual aid depicting the proposed Material Flow Management System. 93 circularactionalliance.org Whistleblower Process In order to allow CAA to incorporate community feedback in the verification process, a whistleblower channel will be made available. The channel will be anonymous and consist of a form on CAA’s website, as well as a direct phone number to contact. Promotion of that channel will be undertaken in collaboration with local governments, EPA and other local authorities (e.g. state DEQ). Information received through that channel will be reviewed by CAA and transferred to the Certification Body and its auditor if relevant. Verification Sampling Plan Not all entities will be verified every year. By July 1, 2029, according to the proposed temporary variance presented below, all entities will have been verified at least once. The CAA audit cycle will operate on a five- year cycle, with every entity receiving an on-site audit at a minimum of every five years after the first on-site verification. In the interim, desk audits (review of documentation) will be performed. RMS will determine the sites to be verified based on the following criteria:  Tonnage received: larger tonnage will be prioritized  Previous verification: sites that have not been previously audited will be prioritized  Risk of non-compliance: overseas end markets and entities for which CAA has received information related to potential non-compliance spotted in the quarterly reporting review will be prioritized  Compliance with other verification process: entities already participating in other certification (e.g. recycled content) or verification programs (e.g. food grade quality control) will not be prioritized if stakeholders share relevant information and if that information allows CAA to verify compliance against REM standards REM Verification Criteria (Preliminary) To develop an effective standard with appropriate criteria, CAA conducted a benchmarking of existing standards against DEQ’s REM requirements defined in Rulemaking 1. Consideration was given to which verification methods and baseline requirements would serve as appropriate “responsible” criteria from a regulatory perspective. Many certifications contained admirable and desired criteria, which were seen to be difficult to implement in practice across all geographies and material classes. Therefore, CAA chose to establish core criteria that first met the requirements of the RMA, and then could be implemented widely and allow third-party certifications to implement preferred tiers with state-of-the-art sustainable criteria beyond the regulatory baseline. Table 14 provides CAA’s preliminary list of criteria. The following table presents, for each criteria, the compliance approach (i.e. what an end market entity shall undertake to comply with the criteria), and the applicable non-compliance classes. It is important to note that the list below as well as the compliance approach remain preliminary until CAA has consulted the end market industry on the content and has undertaken field-testing with key end market 94 circularactionalliance.org entities. The final REM Verification methodology, including the final list of criteria, will be provided to DEQ once the consultation and field-testing has been completed. 95 circularactionalliance.org Section Criteria Description Compliance to Legal compliance Entities must comply with all applicable laws, policies, regulations, and law and treaties for the jurisdiction(s) in which they operate. This includes but is regulation not limited to requirements related to labor and employees, environmental management, materials management, fair business practices, bribery and corruption, and disclosure and reporting. Awareness of Entities must demonstrate awareness of compliance requirements, Compliance including relevant personnel responsible for managing compliance. Responsibilities Disclosure of Entities must record and disclose any notices of violation from the Compliance relevant rulemaking body, and document the resolution of the Violation noncompliance. Labor Employment The entity must maintain an employment policy(s) that addresses and policy ensures compliance with the principles in this section for all direct employees, including full-time, part-time, and contract or temporary employees. Any violations against the policy must be reported and entity must verify proof of corrective actions taken to resolve the noncompliance. Free and fair All work is voluntary with no compulsory, forced, bonded, or indentured labor labor not in accordance with ILO convention 29 is prohibited. No labor is conducted under threat of penalty or sanctions. Child labor The entity shall not employ workers under the national minimum age for employment, or the age of completion of compulsory education, whichever is higher. In any case the entity shall not employ workers under the age of 15 except where in accordance with local law and ILO Convention 138. The entity shall ensure that workers under the age of 18 do not work at night or in conditions which compromise their health, safety, and emotional or physical development. Discrimination, The entity must maintain a policy and management system ensuring all harassment and workers are treated with respect and dignity. The policy must be readily abuse available and understandable by employees or contactors. No harassment or abuse of any kind will be tolerated. There shall be equal opportunity and no discrimination of employees on the basis of characteristics including race, sex, gender, age, religion, marital status, disability, sexual orientation, pregnancy, nationality, political affiliation, or any other personal characteristic. Health and Safety The entity shall assign a responsible person for health and safety procedures and matters. prevention The entity shall establish and maintain procedures for promotion of worker health and safety, including procedures for: a) Emergency response, including in the case of injury, illness, evacuation, fire, or other emergency. b) The provision, use, and training for the use of personal protective equipment (PPE) and preventative measures for avoiding illness or injury. 96 circularactionalliance.org c) Worker training on health and safety. The entity must maintain training records for a minimum of 5 years. Relevant licensing or other legal requirements and documentation, such as for qualified machinery operators or chemical use licenses. d) Corrective action and response in the case of noncompliance with health and safety measures or adverse health and safety incidents. The entity shall appropriately manage workplace hazards and put in place adequate safeguards against workplace risks. This includes but is not limited to: a) Proper management for the handling and storage of hazardous materials, and controlling the exposure of workers to such materials. b) Providing appropriate PPE and related supplies to workers, and training on the use of such, for both routine tasks and incident or emergency response measures. The entity shall require the use of PPE as part of safety procedures in accordance with any mandated regulations or safety guidelines. c) Providing safe building environments, including environments are adequately protected against risks such as physical hazards, fire risk, and exposure to chemicals, disease, or excessive heat, cold, or noise. d) Providing clean and sanitary working conditions, including access to sanitary toilets, clean drinking water, and, if applicable, facilities for cooking and preparing food. e) If residential facilities are provided, these are maintained in a clean, sanitary, and safe condition. The entity shall record any workplace injuries and take appropriate corrective actions. Environmentally- Environmental Entities shall maintain compliance with all applicable environmental sound compliance laws, regulations, permits, or other legal requirements or agreements. Any permits or licenses shall be up to date. Any contractors providing offsite treatment of waste or wastewater must provide permits and licenses as well. Any instances of noncompliance shall be documented and reported and entities shall provide proof of resolution of the noncompliance. There shall be no activity on-site that causes obvious contamination to the local environment. Environmental Entities shall have in place an environmental management system for Management addressing key environmental impact areas. At minimum this shall System include: Components a) A designated responsible person at the management level; b) A mechanism to remain up-to-date with applicable local legal requirements; c) Procedures and records for training of relevant staff in environmental impact areas; d) A system to document, measure, and track the relevant indicators for environmental impact areas. 97 circularactionalliance.org Environmental The entity shall work to minimize impacts to air, water, and land from its Impact operations. At a minimum and where applicable to facility processes, it Measurement shall quantify and disclose on an annual basis relevant indicators related to the below environmental impact areas, such as: a) Emissions to air: Any material emissions to air, including regulated air pollutants or pollutants of concern. b) Discharges to water: Material discharges to water, including direct discharge to water bodies, capture and treatment of runoff, indirect discharge via land application, ie private or public treatment systems. c) Water management: water use and related water management indicators. d) Waste management: the total amount of hazardous and non- hazardous waste generated from its facilities, and the disposal method used. Chemical Entities shall have in place a chemical management system for Management addressing chemicals of concern within their operations. At minimum System this shall include: Components a) A designated responsible person at the management level; b) A mechanism to remain up-to-date with applicable local legal requirements; c) Procedures and records for training of relevant staff who may handle, store, or utilize chemicals; d) Maintenance of a list of all chemical inputs to their operations, including products and processing aids; e) Maintenance of Safety Data Sheets (SDS) for all chemical inputs and any additional chemicals used onsite; SDS shall be readily available to workers in their local language. Chemical of Entities shall quantify and disclose any chemicals and materials of Concern concern (as defined by CA Proposition 65) intentionally added during Disclosure processing of recycled outputs, and the end of life management of these materials. Spills, leakages The Entity shall: and plastic a) Conduct an assessment of major risk areas of operations where spills pollution and leakages could contaminate air, water and/or soil. assessment, b) Implement a management plan including compliance controls, monitoring, and emergency response plan to prevent, detect and including remediate spills and leakages, especially for microplastic. microplastic c) Document and disclose to auditor impact assessments of material spills and leakages, root causes and remediation actions taken on an annual basis. Management of Where applicable, entities that produce, process, handle, transport, or resin loss store plastic resin pellets or flakes shall demonstrate that they implement the principles of Operation Clean Sweep for management of resin loss. a) Risk Management b) Internal Procedures c) Evidence of Best Practices d) Monitoring of Potential Losses and Internal Audit Transparency Audits and All Supply Chain Entities – entities transporting, brokering, or records transferring or otherwise in control of covered materials from Material Recovery Facilities to defined end markets – must be willing to be 98 circularactionalliance.org named and be subject to desk audit for compliance to Responsible End Market criteria. Supply Chain Entities must keep Chain of Custody records of transactions of covered materials for not less than five years and make records available to the Certification Body or Producer Responsibility Organization (PRO) upon request. All defined end markets must be willing to be named and be subject to desk or on-site audit for compliance to Responsible End Market criteria. End Markets must keep Chain of Custody records of transactions of covered materials for not less than five years and make records available by Certification Body or Producer Responsibility Organization upon request. Documentation All entities transporting, brokering, or transferring or otherwise in control of covered of covered materials from Material Recovery Facilities to defined end materials markets must track material and provide chain of custody documentation to notify customers. Defined end markets shall provide quantification of covered materials received from regulated markets, via quarterly summaries of material volume, by type. Quantification of Defined end markets must summarize quarterly the volumes of covered material disposal materials by final disposition method for each material type as defined by category determination table. Quarterly summaries shall include: i. Recycled material in product(s) sold to downstream customer; ii. Recycled waste sold as scrap; iii. Waste material send to landfill, incineration, or waste-to-energy. Quarterly quantification summaries shall be supported by internal production reports, vendor data, sales data, and/or other records of material separation, processing, and final disposition. Entities must provide a list of the companies receiving disposition of residual outputs destined for landfill/ incineration/ waste-to-energy (including Name, Physical Shipping Address, Contact Information, Material description) to Certification Body or Producer Responsibility Organization, updated quarterly. Entities must provide documentation that downstream processors of landfill/ incineration/ waste-to-energy residuals maintain active required legal, solid waste, and environmental permits. Penalties and Within 90 days of notification of non-compliance event listed above, violation End Market must also provide to Producer Responsibility Organization a corrective action and non-compliance resolution plan for review and confirmation. Required Participants must provide documentation of penalties and violations occurring in last calendar year and signed acknowledgement of completion or acceptable progress by Regulatory Agency, Producer Responsibility Organization, and/ or Department of Environmental Quality to remain eligible for Responsible End Market designation and participation. Yield Yield All entities must document and be willing to share records of yield for documentation covered materials. a) Yield shall be documented as the output weight of materials 99 circularactionalliance.org processed and sold for use in new manufacturing, as a percentage of the input weight, accounting for process losses. b) Yield shall be >60% for all covered material categories. c) Yield must be documented separately by material type if they are received and processed distinctly. d) Materials that are received and processed in mixed fashion may be evaluated in total, except where otherwise required to be documented separately. 1) At a minimum, yield must be documented separately for the following covered material categories: plastic, glass, paper, and metals, based on the primary material composition. 2) Entities receiving Oregon covered materials must evaluate yield separately for the following materials: a) Polycoated Cartons b) Composite metal, paper cans - at paper mills only c) Plastic bottles that measure at least two inches in each of two or more dimensions, including caps if screwed on, made of the following materials: PET (#1) (clear only), HDPE (#2), and PP (#5) d) Plastic tubs that measure at least two inches in each of two or more dimensions, including caps if screwed on, made of the following materials: PET (#1), HDPE (#2), and PP (#5) e) Plastic buckets, pails, and storage containers, including lids if snapped on, made of the following materials: HDPE (#2) and PP (#5) f) Nursery (plant) packaging, such as pots and trays, made of the following materials: HDPE (#2), PP (#5) Yield Supply chain entities shall document the following as part of the yield measurement calculation or estimation: and calculation details a) Amount of material received; b) Amount of material disposed, by method and destination, in conjunction with Disposition Reporting in Section 5.2.2; c) Estimated losses; d) Whether the entity was the first to receive the material downstream of collection. 100 circularactionalliance.org Compliance Section Criteria Non-Compliance Category Approach Compliance to law Legal compliance Establish a and regulation performance base Disqualifying / Major level Awareness of Establish a Major / Minor Compliance performance base Responsibilities level Disclosure of Documentation and Major Compliance Violation recordkeeping Labor Employment policy Develop a policy / Major/ Minor / Recommendation if management compliance achieved system for continuous improvement Free and fair labor Establish a Disqualifying performance base level Child labor Establish a Disqualifying performance base level Discrimination, Establish a Disqualifying / Major/ Minor / harassment and performance base Recommendation if compliance abuse level / Develop a achieved policy / management system for continuous improvement Health and Safety Establish a Disqualifying / Major/ Minor / procedures and performance base Recommendation if compliance prevention level achieved Environmentally- Environmental Establish a Disqualifying / Major sound compliance performance base level Environmental Develop a policy / Major / Minor Management System management Components system for continuous improvement Environmental Impact Measure and report Major / Minor Measurement 101 circularactionalliance.org Chemical Develop a policy / Major / Minor Management System management Components system for continuous improvement Chemical of Concern Measure and report Major / Minor Disclosure Spills, leakages and Develop a policy / Major/ Minor if reporting deemed plastic pollution management complete assessment system for continuous improvement Management of resin Develop a policy / Minor loss management system for continuous improvement Transparency Audits and records Documentation and Disqualifying / Major record keeping Documentation of Documentation and Major / Minor covered materials record keeping / Measure and report Quantification of Documentation and Major / Minor material disposal record keeping / Measure and report Penalties and Documentation and Major / Minor violation record keeping Yield Yield documentation Measure and report Major / Minor Yield measurement Measure and report Major / Minor and calculation details Table 14 Verification of Chain of Custody CAA will offer CRPFs access to a Service Provider Portal that will enable, among other things, continuous material tracking throughout the value chain (material flow management system). Preliminary discussions with CRPFs have been held to define the best approach in terms of data to be shared and methods to share 102 circularactionalliance.org data. For CRPFs that will not be able to use the Service Provider Portal, CAA will provide a prescribed template to fill-in and share. Data to be shared include end market locations, commodities and tonnage). The audit process includes an audit initiation and preparation phase between the CB and the entity verified, in which the paper trails related to chain of custody (e.g. purchase orders, processing information such as conversion factors, production and stock records, sales orders, inventory balance) will be reviewed. On-site audits will review the chain of custody documents for specific loads. Verification of Recycling Yield for Materials Mixed Together in a Bale CAA will provide access to the material flow management system to the CBs in order to measure and verify yield compliance. End market entities will be asked to provide an overall amount of material received, disposed and successfully processed. For materials mixed together in a bale, CAA will ask end market entities to estimate and self-attest the recycling yield, while providing methodological justification. CAA will ask the CBsauditor to pay specific attention during the on-site visit to ensure that minority components in a mixed bale are not being diverted to landfill. The auditor may determine through interviews and review of technical documents associated with the facility's equipment whether yield thresholds for material being accepted by the facility are being met. It will also demand to see the residuals stream generated from the facility's process to determine whether material accepted by the end-market is being properly processed. Investigating Non-Compliance For each entity audited, the CBs contracted by CAA/RMS will provide an audit report that will clearly state:  If the end market entity passes or fails each of the REM criteria, and the rationale for each potential fail  If the end market entity can be deemed responsible or not (if it is not deemed responsible, the report will list corrective actions required to bring it into compliance) The report will not contain detailed information about the entity for confidentiality purposes but will include the end market entity name, location (city and country) as well as the material type received. For clarity, the report will not contain information such as supplier(s) of material and quantity processed. Instances of non-compliance are most likely to be reported to CAA during the verification process, by the chosen CB. DEQ will receive the verification report and will be informed of any entity that is not compliant after CAA’s review process. Actions to Address Non-Compliance The verification report and RMS certification database will clearly state and the certification determination of the entity (active/ suspended/ withdrawn) and non-compliance status (category and criteria area). The CB will issue finding with corrective action steps that would be required to bring it into compliance. The CBs will 103 circularactionalliance.org classify potential non-compliance according to the severity of the infraction: based on ISO 19 011, CAA will classify non-compliance into three categories of severity:  Minor non-compliance  Major non-compliance  Disqualification non-compliance CAA’s non-compliance methodology also includes a “Recommendation” category. This category allows CBs’ auditors to suggest best practices to assist with continuous improvement when entities are within compliance or could easily mitigate non-compliance risk. CAA is providing expanded guidance on how the auditor should determine non-compliance class based on the nature of the instances observed. Each class has specified results of non-compliance discovery, procedures for certification body and CAA action, and timelines for implementing corrective action plans. CAA designed the non-compliance structure to balance strong disqualifying thresholds with lower categories supporting systemic improvement through corrective action. Table 15 below shows the definition of each non-compliance, type of non-compliance covered and result of non-compliance category. 104 circularactionalliance.org Category Disqualifying Major Minor Recommendation Definition Significant Material issues Technical issues Guidance for future violations that identified during identified during improvement and contradict the the audit that the audit that do prevention of non- principles of the must be resolved not represent compliance. They support aligned best practices while standard prior to issuing a material accounting for variation in positive deviations from different geographic regions certification the standard. and organizational decision. capabilities. Types of non- Willful deception Non-compliance Clerical errors or Instances where minor non- compliance of certifiers or results in a inconsistencies in compliance is open to covered provision of false fundamental or documentation interpretation information systematic Observed lapses Inconsistencies where inability to meet continuation of practice Refusal to provide in requirements the objectives of could eventually lead to audit access or that do not the standard non-compliance relevant audit materially affect Examples of best practices documents, or Non-compliance the certifier’s to provide options to refusal to is seen to exist ability to judge reduce the need for auditor cooperate with over a long period the entity’s judgment in future audits the auditor of time, be general Examples to support systematic or compliance with Evidence of improvement towards repeated the requirements corruption, preferred criteria throughout of this standard coercion, or operations, or bribery Note that a affect the substantive Lack of legal integrity of the number of minor license(s) to product or the nonconformances operate, or lapse reputation of the may constitute a of relevant verification major permit(s) for a Significant nonconformance period greater discrepancies or than twelve (12) gaps in months documentation Gross negligence, Other findings willful violation, or determined by repeated the certifier to be violations of basic inconsistent with requirements the requirements related to fair of this standard labor, working conditions, health and safety, 105 circularactionalliance.org environmental responsibility, or chemical management Results of non- Audit immediately Audit continues Audit continues Audit continues as planned compliance suspended as planned as planned Certification able to be discovery Certification able Certificate will not Certification will awarded or renewed to be awarded or be awarded or will not be awarded or renewed be revoked if renewed Participant has 1 granted temporarily year to resolve all previously Applicant will minor non- have a window of compliances. 30 days from Should any minor receipt of NC not be corrective action resolved after 1 plan to respond year, it will be with supporting reclassified as a evidence of Major NC compliance Table 15 Requests for Temporary Variance in Verification CAA requests temporary variance from the required components of a verification under the following conditions: 1. When another PRO has already approved the end market and deemed it responsible in accordance with Oregon REM standards. a. Other PROs periodically verify the end market on its performance (e.g. recycling yield) and compliance to their jurisdiction’s requirements or the PRO’s policy. For example: i. LDPE recyclers in North America that process materials from the agricultural sector may be audited by Clean Farms, a Canadian PRO for agricultural products ii. Paper mills in Asia may be audited by Valipac, a Belgian PRO for packaging material, in compliance with the Waste Shipment Directive Regulation b. CAA requests a variance in instances for when an entity can prove, with evidence, that it has been audited by a recognized PRO within the last three years and can provide a self-attestation of its compliance to REM standards under the RMA c. If an entity can only prove compliance against certain but not all REM standards (e.g. environmental compliance), CAA will undertake the verification against the missing REM standards 106 circularactionalliance.org 2. When an end market entity already has certification requiring verification (e.g. recycled content, food grade) a. Several entities are already engaged in different certification schemes, such as recycler certifications (e.g. EuCertPlast, FDA LNO) or recycled content certifications (e.g. RMS, SCS) or a health and safety certification (e.g. RIOS) b. CAA intends to uphold the requirement to validate all necessary criteria while not replicating auditing that REMs may have validated through other programs c. The rationale is similar to what is detailed above for cases when there is verification from another PRO program. d. CAA requests a variance when an entity can prove, with evidence, that it has been audited by a recognized certification scheme within the last three years and can provide a self-attestation of its compliance to REM standards under the RMA e. If an entity can only prove compliance against certain but not all REM standards (e.g. environmental compliance), CAA will undertake the verification against the missing REM standards. If an entity has a combination of certifications that cover all areas of the REM criteria, a verification under the REM program will still be necessary; however, audit plans can be significantly reduced based on risk profile 3. Domestic paper mills will be deemed to reach the yield requirement if a visual inspection of pulper screenings reveals that a majority of carton fibers appears to have been pulped, unless CAA receives information on potential non-compliance or the audit on-site visit reveals that covered materials are being removed and disposed of before the pulping process 4. CAA has reached out to numerous paper mills in North America (as presented in Appendix D). Unanimously, paper mill operators have expressed strong concerns about sharing yield information, as it is part of their strategic advantage. All of them have also stated that they already largely surpass the 60% yield, especially if non-covered materials (i.e. contamination) are not part of the denominator. 5. Overall yield performance within the paper industry in North America has been confirmed by different entities, including the American Forest & Paper Association (AF&PA), the Technical Association of Pulp and Paper Industry (TAPPI), or Moore & Associates. For example, yields at board mills using OCC and mixed paper are always above 85%. Tissue deinking mills can have yields as low as 70%, but never below 60%. The previous numbers are for 100% recycle mills. “Blended” mills using wood, OCC and mixed paper overall have yields higher than 85%. a. CAA understands the purpose of the yield calculation is to make sure that minority components in a mixed bale are not being diverted to landfill at an end market. As noted above, CAA suggests that the auditor for certification body(ies) pay additional attention to that aspect during the on-site visit. 6. Verification of end market entities for plastic will be at the reclaimer facilities, not at the converters. 107 circularactionalliance.org 7. Current definitions for plastic end market entities imply that when the application is food grade packaging or a children’s product, REM verification occurs at the facility that uses flakes or pellets. 8. Plastic reclaimers are strongly opposed to this requirement, because it implies that they provide their list of clients, which is not only very sensitive and confidential information, but also information that the reclaimer could not legally share in some instances, being bound by a non- disclosure agreement. a. Furthermore, other mechanisms (such as the FDA process for food contact safe PCR) are already ensuring the safety of products and mitigating contamination migration risks. 9. Domestic landfills will be deemed responsible, unless CAA receives information on potential noncompliance a. Landfills and disposal sites in the U.S. and Canada are already verified and controlled periodically by local environmental agencies b. CAA requests a variance for landfill or disposal sites in the U.S. and in Canada, as soon as they provide an operating permit delivered by the local authority. Verification might be performed if information regarding potential noncompliance is provided to CAA Notwithstanding the above, CAA reserve the right to undertake periodic verifications by reviewing certain documents or proof of REM compliance. For variance requests #1 and #2 above, CAA is engaging in discussions with several PROs and third-party certification owners. In every case, CAA will review the methodology to measure compliance from those entities and compare with CAA’s criteria to identify whether CAA could allow an end market entity to comply with one or several of the REM criteria. CAA will then engage with the PRO or the third-party certification owner to discuss collaboration. Once a collaboration agreement has been defined, CAA will share the results of the benchmark assessment and the form of collaboration with DEQ for approval through program plan amendments. Once approved by DEQ, the process to apply the variance will be as follow: 1. Using initial self-assessment forms, CAA will obtain information on existing third-party certifications or other PROs’ verification maintained by end market. 2. CAA will then notify certification bodies of reduced audit needs. 3. Certification bodies will complete REM audits, using inputs from third party certifications or other PROs’ verification to support auditing, and noting non-compliances in all areas if observed. Tracking Material Flows CAA is developing an internal material flow management system to enable continuous material tracking throughout the value chain. The material flow management system is a cloud-based platform that provides the following services, among other capabilities to be determined:  Collect and store integral data from external service provider partners, from haulers to end markets, including loads and weights of materials received, processed and shipped out, inbound and outbound 108 circularactionalliance.org data, and information on stakeholder process and environmental compliance. The system will provide “track and trace” functionality with the ability to securely receive transaction data through system-to- system data exchange, file upload, or secure web-based data entry  Protect confidential data. The platform will implement data security measures that meet the highest security standards, including native encryption of all data, real-time event monitoring, field-level monitoring and audit trails, and field-level data sensitivity  Ensure independent verification. Data and disposition reporting will be tracked and maintained in a manner that can easily be made available for auditing by authorized external parties  Report information to stakeholders for accountability through the secure-access stakeholder portal Figure 8. Infographic depicting the fate and transport of different materials from collection through to disposition. Accounting For Disposition and Yield CAA’s verification standard will contain measures to account for end market variance in disposition and yield when obligated materials from Oregon mix with non-obligated materials from elsewhere. The audited entity will be allowed to use one of the following chain of custody models defined by ISO 22095:2020:  Controlled blending model  Mass balance model with rolling average percentage method 109 circularactionalliance.org The controlled blending model will be used when an entity is using materials from Oregon mixed with other sources in a batch production. ISO 22095 requires that the ratio between Oregon and non-Oregon materials is known for all outputs, at all times, for a contained volume. This model will be limited in its application as most of the recycling industry does not utilize batch production. The mass balance model with rolling average percentage method will be used for continuous processes. This is the method most commonly used in the recycling industry, including for mechanical recycling of plastic. The model as defined by ISO 22095 requires calculating an average percentage of Oregon and non-Oregon materials for each output. It also requires a defined reconciliation period of making a claim. CAA defines those boundaries as follows:  Single site only (no multiple sites possible)  Average to be calculated on a quarterly basis  Characteristic to be used: Oregon source vs non-Oregon source Auditing the Verification Program CAA plans to take a number of steps to ensure a reliable and high-performing REM system. CAA, with RMS, will select certification bodies that are compliant with ISO 17065 (Conformity Assessment – Requirements for Bodies Certifying Products, Processes and Services). This will give CAA the confidence that the REM verification process will be undertaken with professionalism, ethics and neutrality. CAA’s verification program is based on ISO 19011 standards. For the verification to be performed efficiently, the CB usually guarantees the confidentiality of the information shared, providing a report that only states if the entity passes or fails compliance against the requirements. Nevertheless, whenever possible, CAA reserves the right to carry out spot checks of the verification work. For instance, CAA representatives and/or third-party certification scheme representatives will accompany the verification body for some random on- site visits and take other steps to audit the verification process. It will also spot check certain documents that can be made available to CAA. CAA’s verification approach includes a data review step, to be performed quarterly, to verify different data sources. An example would be spot bale audits or comparing a CRPF’s outbound weight with the inbound information from a corresponding end market. Verification will be performed on 100% of outbound tonnage from CRPFs and PRO depots, with the exclusion of the de minimis level from DEQ. Random Bale Auditing To complete the robust chain of custody control through the material flow management system, CAA will randomly audit the journey of materials through the recycling system. Two types of random tracking will be performed: 110 circularactionalliance.org  Tracking from the curbside, to determine if household packaging ultimately ends up in a commodity bale or in landfill. As part of this effort, CAA will work with CRPFs to coordinate with their measurement of material capture rates to meet standards set in rule  Tracking from the CRPF, to determine the fate of loads of specific material managed by brokers The approach to tracking from CRPFs will be informed by a risk analysis that will be evaluated according to several criteria, including but not limited to:  Shipment destination: Bales more likely to be sent to overseas markets will be prioritized  Number of entities handling material: Bales handled by the highest number of entities (i.e. different brokers) will be prioritized  Past audit results: Bales most likely to be sent to recyclers whose audit results have demonstrated minor or major non-conformance compliance on chain of custody documentation will be prioritized  Number of end markets: Bales that do not have a high number of responsible end markets will be prioritized Based on initial assessments of the criteria the above, CAA will likely prioritize the random tracking of the following commodities:  Mixed paper (grade 54)  Cartons (grade 52)  Mixed plastic CAA has held several discussions with tracking device providers, CRPFs and end market entities to define the best approach for random bale tracking. Both CRPFs and end market entities have expressed strong concerns about having battery-powered devices hidden in their supply. As highlighted by AF&PA and APR, representing respectively paper mills and plastic reclaimers, batteries are a growing concern for those facilities because of the fire risk. In recent years, more and more waste management and recycling facilities have experienced fires due to the presence of these battery-powered devices. A legal notice provided to CAA outlines that CAA cannot take liability for using battery-powered trackers, which is what is available on the marketplace. CAA also does not believe mandated use of tracking devices, which may pose a fire safety hazard to processing facilities, would be consistent with the intent of REM verification, which aims to protect worker safety. Instead, for the first program plan period, CAA proposes the use of a chain of custody verification of specific loads, that may include on-site verification. This will provide the same end results (verifying that materials are sent where they are supposed to) without introducing materials that may be incompatible with recycling processes or pose fire risk to transporters and processors. CAA envisions tracking:  Eight points of collection (e.g. curbside, depots, multi-family)  Up to 20 for mixed paper bales or mixed plastic bales (one for each potential broker)  Up to five for cartons bales (one for each potential broker) 111 circularactionalliance.org CAA will then verify:  If products end up in landfill before or after the CRPF process  If loads and bales are compliant with the shipment documents, informing DEQ of any form of non- compliance During the first program plan period, CAA proposes to collaborate with DEQ to undertake an assessment of the safety of certain types of tracking devices that may be compatible with DOT regulations and that may not impact the environment or workers. Supporting Responsible End Markets CAA’s proposed budget includes a dedicated fund for end market development initiatives. The fund will be financed through producer fees and be approximately 3-5% of expected commodity values. Every year, the fee schedule will determine the investment level to be incorporated into the Responsible End Market Development Fund. While 3-5% is established based on experience in other jurisdictions that have implemented EPR, the exact amount will be defined annually based on:  Needs for end market development identified regionally  Other partners involvement  Past financial results CAA will use this fund to increase the use of post-consumer recycled materials in product manufacturing. Key targets of CAA’s strategy for end market development are to:  Improve the supply quality of recycled materials (i.e., bale quality)  Increase market demand as collection volumes increase  Enhance market stability  Enhance recycled material flows to higher-value end products It is important to highlight that CAA has no ownership of materials for materials on the USCL , therefore CAA does not have the ability to drive change by agreeing to supply material to specific end markets. The role of CAA in promoting market development is to identify and address barriers and inefficiencies in the marketplace to make markets work better and to encourage recyclable materials suppliers, processors, and end users to be more effective players in the marketplace. CAA will therefore use the fund to incentivize best practices at reclaimers, such as implementing measures to mitigate contamination, improve cleaning processes, or produce high-grade end products. CAA intends to partner with other organizations that may provide grants for direct investments at end market entities. Following internal pre-assessment of existing markets, CAA has identified several commodities expected to require market improvement to satisfy RMA requirements for REMs. While all materials, especially plastics, may benefit from market improvement, some commodities have been identified as priorities for action: 112 circularactionalliance.org  Mixed paper (grade 54)  Cartons (grade 52)  Glass  Mixed plastics  Flexible PE plastics  Polystyrene  PET thermoforms CAA will maintain active market development programs for commodities and materials and will take reasonable and practicable steps to facilitate the sale of collected materials to responsible end markets. CAA’s ability to facilitate the flow of materials to responsible end markets is predicated by the voluntary agreement of those entities that control the flow of those materials. Actions to support REM development may include:  Providing technical assistance, brokerage services, and/or information on responsible end markets to materials marketers  Purchasing and reselling materials that otherwise are not being sold to responsible end markets (under certain conditions)  Providing wherever possible a supply guarantee to reclaimers so they can secure investments. CAA will focus on taking ownership of commodities lacking end markets if agreed upon by CRPF(s)  Incentivizing improvement and upgrades at end market entities through direct contracts for materials for which CAA has taken ownership  Working in close collaboration with existing investors and market development program managers, such as The Recycling Partnership and Closed Loop Partners  Working in close collaboration with public sector market development programs, such as those in California and Washington  Assessing leverage to promote recycled content in products to pull market demand  Other actions as needed to comply with Oregon law. Specific actions/strategy will be developed for each commodity/material during the program plan review period and will be included in the revised program plan submission. Producer Exemptions Under 459A.869 (13) Under the RMA, producers can demonstrate that certain products are exempt from covered material requirements when those materials are not collected under an Opportunity to Recycle program, are not separated from other materials at a commingled recycling processing facility, and are recycled at a responsible end market. 113 circularactionalliance.org Although demonstrating conformity with 459A.869 (13) is not a formal PRO obligation, CAA will work with producers and recyclers where applicable to ensure that materials collected in relation to this potential covered material exemption are being recycled at REMs. This may include additional tracking and reporting requirements administered by CAA. Responsible End Market Development Guiding Principles The planned responsible end market development program will be guided by four key principles: 1. Partnership. CAA will undertake investments in market development activities in partnership, where possible, with other parties (e.g. the private sector, local governments, and state and federal interests) 2. Link to targets. CAA’s market development investments will be linked to material specific targets. 3. No cross-subsidization. CAA, wherever possible, will avoid cross-subsidization of material specific market development. For example, glass producers will be responsible for funding glass market development activities that are approved by the CAA Board. Where investments benefit a range of materials, costs will be allocated across all benefiting materials 4. Competitive proposals. Where feasible, CAA will implement a request for proposal/competitive bid process for allocating market development funds. CAA will identify its market development priority areas and will invite interested parties to submit proposals to meet CAA’s requirements at the lowest cost. The final decisions regarding market development investments will rest with the CAA Board 5. Prioritize regional and domestic markets. Where feasible, efforts will be made first at a state/regional level, secondly on a U.S. level, and finally on a North American level. CAA will not make overseas investments 6. Balance national and state needs. CAA will aim to improve recycling capacity at a national level, while tailoring actions to meet the specific needs and opportunities of EPR states Furthermore, CAA has defined a series of principles under which it will take practicable actions to ensure the integrity of REMs:  CAA will take actions according to type of non-compliance (e.g. CAA will not take action for disqualification non-conformance)  CAA will take practicable actions in priority at North American entities and will limit its actions overseas  CAA may consider financial levers under specific considerations, in the form of financial de-risking measures  CAA will not take actions if: o Other REMs already exist for the relevant material o The entity processes a low volume from Oregon o The entity is not financially stable 114 circularactionalliance.org CAA will coordinate with industry stakeholders when considering practicable actions for CAA to take. ix. Upholding Oregon’s Materials Management Hierarchy CAA will uphold Oregon’s materials management hierarchy, specifically with regard to the third principle: recycle material that cannot be reused, with preference given to recycling pathways, methods and responsible end markets that result in the greatest reduction of net negative impacts on human well-being and environmental health. CAA has identified the previously named end markets, which were informed by the outcomes of DEQ’s prior LCA work. In the third program plan submission CAA will outline an initial graduated fee proposal based on current LCA rules and ecomodulation concepts. For future program plan amendments, CAA intends to extend its ecomodulation program to include additional criteria that will support the policy objectives and environmental outcomes intended to be achieved from the materials management hierarchy. CAA will capture environmental impactsduring the REM verification process. This information will include, wherever applicable, water usage, energy, waste generation, impacts of plastic pollution, etc., and will be gathered during the REMs verification process occurring throughout the course of the first program plan period. Information gathered during the first program plan period will be used in the plan submissions for subsequent periods. CAA may be able to provide a preferred hierarchy of end markets, for PRO materials, based on that information. For USCL end markets, CAA will indicate which REMs have environmental impact information available, so CRPFs can further explore, and apply a hierarchy for material management with their end markets, if they so choose. As new end markets are identified, the impact areas of that operation will be compared to information captured for existing REMs for similar materials. REM auditors will note if the REM can supply information on impact areas. Material-Specific Strategies Based on existing information and on DEQ analysis for specific end markets, glass, cartons and polystyrene require unique materials management strategies. CAA will work on selecting specific end markets for each of those materials, and the organization may compare the solutions through an LCA that follows ISO 14040 Standard (LCA principles and framework) to identify those with the better environmental outcomes. CAA will apply the impact area data capture efforts, described above, to REMs verification for all materials. 115 circularactionalliance.org Strategy for Glass Apart from when glass is used in some aggregate applications, which would not be considered a REM application, glass needs to be processed by a glass beneficiation plant before it is sent to final users. Since the first version of the program plan, CAA has engaged in discussions with representatives of Oregon glass beneficiation plant Glass-To-Glass inc. (G2G). CAA has also assessed different available markets once the material is being processed by G2G. As a result, CAA believes recovered glass could supply different glass container manufacturing and fiberglass manufacturing facilities located in the Pacific Northwest or in California. It is CAA’s belief that sufficient capacity exists for glass today, and that no new markets need to be developed. Therefore, CAA does not need to perform an environmental impact evaluation for alternative glass markets. This evaluation will only be conducted on available end markets. CAA and G2G have signed a Letter of intent in order to engage in a supply agreement for processing glass collected through on-route collection and PRO depots. To ensure the quality of collected glass is maintained, CAA will create targeted education materials to reduce contamination of the most problematic materials, such as ceramic and heatware. Strategy for Cartons CAA will work in close collaboration with the Carton Council of North America (CCNA) to partner with specific end market entities that are involved in pulping activities, such as tissue production, notably in North America (e.g. Kimberly-Clark de México, S.A.B. de C.V., Sustana Fibers, and Tissue Depot formerly known as Great Lakes Tissue). Strategy for Polystyrene In accordance with DEQ’s LCA on polystyrene, CAA will prioritize end markets that utilize mechanical recycling over non-mechanical recycling. Strategy for All Plastics The REM Verification process will pay specific attention to spill and leakage. A criterion in that regard is to be used during the audit, as described in section “viii. Ensuring Responsible End Markets.” 116 circularactionalliance.org d. Education and Outreach In this subsection of the plan, CAA details how it plans to conduct education and outreach activities in support of USCL and PRO Recycling Acceptance list materials, as well as the statewide promotional campaign. Due to the nature and timing of start-up activities required for education and outreach (previously an interim coordination task), CAA has integrated the requirements for that activity within this section. CAA and its partners plan to consult with local governments and their service providers, ORSAC, DEQ, and community-based organizations to garner feedback throughout the development of educational materials and plan formulation process. i. Goals for Education and Outreach 1. Effectively build widespread recycling awareness among all Oregonians in the scope of the RMA, including residents living in single-family homes and multifamily communities, as well as commercial businesses, institutions, and non-governmental organizations. Awareness efforts will leave these waste generators with: a. An understanding of the USCL and the PRO Recycling Acceptance List materials, as well as how to prepare those materials for recycling b. Knowledge of which materials will be collected at curbside versus which materials will be handled at depot drop-off points and other drop-off locations (such as collection events) c. Awareness of steps to prepare recyclable materials for collection and to limit contamination 2. Develop educational materials that are culturally responsive to diverse audiences across this state, including people who speak languages other than English and people with disabilities 3. Deliver support and messaging proven to effectively increase participation, boost capture of recyclables and reduce contamination. The education and outreach will contribute substantially to the established goal for increasing the plastics recycling rate (25% by 2028, 50% by 2040, and 70% by 2050), thereby contributing to the RMA’s goal of maximizing the use of existing infrastructure 4. Include a systematic focus on and complement programmatic efforts to reduce contamination of recyclable material streams Accomplishing these education and outreach goals ladders up to the overall program plan goals, in particular Objective 3 (improve public participation, understanding, and equity in the recycling system) and Objective 2 (increase the diversion of recyclable materials from disposal). 117 circularactionalliance.org CAA proposes to conduct annual assessments of awareness and trust in the recycling system, as well as contamination audits to measure effectiveness of the campaigns and progress toward the goals outlined above. ii. CAA’s Education and Outreach Plan CAA and partners, in consultation with ORSAC, will develop educational resources and promotional campaigns to promote the USCL, as well as depot recycling programs. CAA will coordinate and fund the distribution of education and outreach materials through statewide promotional campaigns following the first establishment of the USCL and after each revision of the USCL, but not more frequently than once per calendar year. Supporting Widespread Awareness and Understanding This section outlines CAA’s proposed approach to building widespread consumer awareness and understanding of the USCL, the network for PRO Recycling Acceptance List materials and other recycling services available to them. Audience Research: Measuring Customer Awareness and Trust The target audiences for education and outreach efforts under the RMA are described broadly below. Residential audiences can be further segmented by demographic characteristics. A keystone workstream will be to complete in-depth audience research to effectively develop and deploy messaging that resonates with each group.  Single-family household residents  Multifamily household residents o Multifamily property management  Residents that will utilize drop-off/depots  Commercial businesses, institutions, and non-governmental organizations Audience research will consist of the following activities:  Statewide Quantitative Survey: Gather attitudes, perceptions and opinions on current recycling practices, and the current system including understanding and satisfaction o Explore knowledge and attitudes surrounding the recycling of certain materials o Identify gaps in recycling knowledge and points of confusion o Gather feedback on concepts/messaging in terms of relevance and motivation  Qualitative Interviews: 118 circularactionalliance.org o To be conducted with customers in the following languages to provide real-world insights to inform the production of non-English material: Spanish, Simplified Chinese, Traditional Chinese, Korean, Arabic, Russian, Vietnamese, Tagalog, Hindi, Somali and Ukrainian Anticipated audience considerations include:  4.2 million residents, living across 1,642,451 households  120,704 employer establishments (single physical locations at which business is conducted or where services or industrial operations are performed; companies or enterprises may consist of more than one establishment)  Translations and transcreations to the following language groups: Simplified Chinese, Traditional Chinese, Korean, Arabic, Russian, Vietnamese, Tagalog, Hindi, Somali and Ukrainian  Responsive communications strategies to serve an increasingly diverse population  Accounting for gaps in rural vs. urban use of internet to access government services  An estimated 35% of Oregon’s recycling is generated by the commercial sector, thus substantial investment is needed to effectively capture recyclables from this sector 119 circularactionalliance.org Developing Messaging Leveraging key insights from behavioral science research and best practices in motivational messaging for effective outreach, CAA and its partners propose to develop key messages tailored to different audiences in Oregon, which will likely include the Portland Metro Region, communities outside of the Metro region with more than 4,000 residents, and rural communities. Messaging Best Practices CAA proposes to leverage proven best practices in motivational messaging to build participant confidence, improve recycling behaviors among participants, and increase capture of recyclable materials. Motivational messages will be paired with instructional messaging, tailored to target audiences. Key messages that will be communicated to the public include but are not limited to:  An explanation of the USCL  An explanation of recycling services, including depots and how to sign up for/access services  Accepted materials vs. not accepted materials  Instructions for preparing materials for recycling  Information on the importance of not placing contaminants in curbside recycling bins and carts  Key messages will be clear and free of jargon Consultation and Testing Campaign messaging may incorporate the best practices described above but should be tested and refined to ensure local relevance and cultural sensitivity. CAA proposes to evaluate and adjust its messaging based on a statewide quantitative survey, focus groups, and consultation with Oregon recycling program staff as well as local CBOs. Change Management As the RMA is implemented, there will be differing changes to accepted materials lists across the state, and education and outreach will play a critical role in alleviating the burden and confusion of these changes on key audiences. For instance, as infrastructure and responsible end market development goals are met, the USCL and PRO Recycling Acceptance lists may evolve. Additionally, some communities may be exempt from implementing the USCL on the effective date and will come into compliance over time. Importantly, the effects of these changes may be experienced unevenly across the state. For some communities, updates to the USCL could create feelings that materials are being taken away, and for others, it will be clear that materials are being added. The overall communications strategy must account for the implications of these perceptions and also strive to minimize confusion. Material-Specific Considerations 120 circularactionalliance.org Message development will account for the considerations identified in the Materials Strategy section above with regard to SIMs to the fullest extent possible. For plastics in particular, the expectation is that the majority of resin types, with perhaps the exception of plastic films and expanded polystyrene (not collected curbside), may end up in curbside containers. All efforts will be made through education and outreach to limit contaminants and contamination, and advance collection of all plastics through the depot network where appropriate. Delivering Messaging CAA proposes adopting the following best management practices, where appropriate, for delivering communications and messaging to effectively capture attention and motivate appropriate recycling behaviors. Effective strategies will vary depending on the target audience, and are grouped as such: General Best Practices:  Behavioral research has not found general “awareness” campaigns to be effective in driving behavior change to increase recycling. Beyond ensuring that residents are aware of recycling in their community, efforts should focus on why and how to recycle  To capture resident attention and motivate appropriate recycling behaviors, information should be provided to the resident close to where the behavior will occur – most likely, at home. This is what makes direct mailing effective as well as equitable in reaching communities with lower internet accessibility rates  Recent research suggests that information should only include up to five categories of accepted and unaccepted materials with images and clear language – any more is overwhelming to the resident. CAA will develop a strategy for clearly and succinctly communicating the USCL to customers, while ensuring that they also have access to detail guidance where needed  Residents need to make the choice to recycle each day, which requires sustained effort. At least one annual mailer is a best practice as a minimum level of recycling education  A dedicated recycling landing page on local government websites with relevant recycling information for all user groups is a strong step to help funnel searches from residents looking for information online  All information should be presented using clear language.  Direct mailings with a top issue (one item that is a top contaminant) are helpful in reducing contamination, especially when paired with cart tags  Recycling messaging delivered by multiple mailers has been observed to significantly increase recycling participation in one pilot study  Ongoing research findings imply that multiple interventions (e.g. mailers AND cart tags AND in-person outreach) may be required to meaningfully increase recycling  Delivering messaging by cart tag is memorable and has proven effective at increasing recycling tons in several pilot studies 121 circularactionalliance.org Multifamily Recommendations:  When working with multifamily properties, education and support needs to be provided to residents and property managers. Materials should be written with both audiences in mind, with separate pieces for managers and residents  Property managers need to be provided with information on regulations, best practices for recycling, how to set up recycling at the property, and resources to educate residents about how to recycle properly  In-unit recycling bins or totes are a promising strategy for increasing multifamily resident participation, but further research is needed to understand the impact of this tool  Signs posted near or on recycling containers can help to increase the clarity of what is accepted in the recycling stream. Portland’s free signs are a great example of a helpful tool  Behavioral scientists recommend introducing new concepts at points of change in people’s lives – such as a move. A move-in packet that includes recycling information is a helpful tool for new residents PRO Depot/Drop-Off Recommendations CAA will ensure that in conjunction with messaging aimed at building awareness of the USCL, educational collateral and the statewide campaign will promote the depot network, including site locations and instructions for preparing materials. In addition, once customers arrive at the depot, it is important that they are provided with clear guidance and instructions.  Clear signage with guidance and instructions at the drop-off location (both on containers and at the facility entrance) can help drive correct behavior  Specific messaging provided around confusing and hard-to-recycle materials, such as film, will help waste generators correctly sort their recyclables  A single-issue postcard can be used to highlight materials that are common contaminants Recommendations for Commercial Businesses, Institutions, and Non-Governmental Organizations:  Conduct outreach to business associations and chambers of commerce to share information about the USCL and the PRO Recycling Acceptance List, and offer technical assistance resources to help businesses throughout the state, especially outside of the Portland Metro area to: o Recycle covered materials o Recommend the use of internal collection bins and strategies for ensuring recycling is convenient for employees to access. Co-location of recycling and garbage containers is the most convenient setup within a business, both inside the businesses and for external containers o Establish guidelines and a minimum recycling service standard for recycling service by business type 122 circularactionalliance.org  Make recycling signs and instructions available to businesses o Create recycling sign portal with downloadable signs, or available for order and mailed to the business o All signs should clearly identify recyclable materials in no more than five categories and include the top five common contaminates in a “no” category  Tailor messaging and support provided to businesses depending on size and generator type. Each of these generator types face different barriers to recycling, have different recycling systems in place and generate different types of recyclable materials: o Institutions: healthcare, university, schools o Franchise and chain businesses o Independent small businesses o Restaurants, retail and manufacturing Developing Educational Materials CAA will fund and coordinate the development of the following educational resources, which will be created with local government input and will help enable local governments to meet Opportunity to Recycle Act requirements. These materials will communicate:  Materials identified for recycling as described in the USCL.  Requirements to properly prepare materials for recycling  The importance of not placing contaminants in commingled recycling collection  Information about collection of materials on the PRO Recycling Acceptance List, including locations and instructions for preparing materials for drop-off Educational Materials for Local Governments and Service Providers Educational materials will be made available in digital and print formats for local governments. Materials will be translated and transcreated into Spanish, Simplified Chinese, Traditional Chinese, Korean, Arabic, Russian, Vietnamese, Tagalog, Hindi, Somali and Ukrainian. Materials will be developed and made available in an electronic format via an online portal to local governments and their authorized service providers for download and customization to local conditions. Customization options will allow local governments to easily adapt the materials below to communicate their individualized phase-in timeline to their local public. Customization is also necessary in allowing for adaptation as accepted materials lists change over time due to end market dynamics and other factors. Specific collateral will include:  Photos/illustrations of accepted items and photos/icons of key contaminants  Sample text for informative, motivational, and instructional messaging via newsletters, websites or social media 123 circularactionalliance.org  A press release  Web domain and QR code for public-facing website  Handouts and/or mailers, including postcards, brochures, full-page flyers, door hangers, and a billing insert  A social media toolkit  Signage and stickers for depots, commercial and multifamily recycling enclosures  Label/in-mold labels for roll carts and other containers used for the setout of recyclables (translated and transcreated into the languages cited above) To support the use of the above materials, CAA will also produce and make available to local governments and their service providers a recommended messaging timeline, as well as a statewide style guide for consistent visual appearance in education and outreach materials. Educational materials will be produced and made available to local governments in a series of batches. The batches are described in the following graphic. Figure 9 Plans for an Online Portal CAA proposes to provide an online portal for local governments and their designated service providers (and any other entities such as commercial businesses, if planned) to easily access, customize, print and mail educational collateral at no cost. Users of the portal would be able to:  Access templates for the various educational materials listed above that has been strategically designed based on best practices to effectively deliver recycling messaging  Accommodate educational materials for relevance to different types of recycling programs, especially curbside pick-up and drop-off programs  Produce coordinated educational material that is thematically aligned for cohesive recycling education and outreach across the state 124 circularactionalliance.org  Customize materials in 10 additional non-English languages spoken in Oregon  Easily customize materials to reflect their local contact information  Customize materials to accommodate the different bin colors across programs CAA has built support for local governments and designated service providers in the utilization of the portal into its staffing plans. Communicating Directly with the General Public CAA will maintain a website for Oregon residents to learn about recycling by accessing information on the RMA, the USCL, collection points and depots, and in-home recycling best practices. CAA will also explore opportunities to implement responsive customer service tools via its website. CAA will include messaging on its public-facing website that is aimed at building public confidence in the recycling system and the RMA. Messaging will include information about the PRO’s requirement to ensure materials are transferred to responsible end markets and its methodology for doing so. Additionally, CAA will make life cycle assessments conducted by producers to meet obligations of the RMA accessible on this website and will accompany these postings with clear and jargon-free explanatory language to ensure this information is accessible to all members of the public. Additionally, CAA will provide material for local governments to include on their websites, allowing local governments to include more detailed information about accepted and not accepted material. In this way, local governments will continue to serve as a resource for waste generators who want to learn more about recycling in their locality. iii. A Description of the Statewide Promotional Campaign CAA proposes to employ a phased approach to the statewide campaign that will focus on (1) communicating statewide changes to the recycling system in 2025 and introducing new resources, and (2) maintaining awareness throughout 2026 and 2027, while driving increased participation and capture to meet goals set by the RMA. Throughout both phases of the education and outreach plan, CAA and partners will be focused on delivering messaging and collateral that builds awareness among Oregon residents and organizations and effectively introduces the USCL and PRO Recycling Acceptance List. The organization will leverage proven motivational, empathetic messaging in bold, bright colors that will appeal to recyclers who need more encouragement (based on our audience segmentation research), pairing that outreach with detailed instructions for customers to participate successfully in the new system. The statewide campaign will provide messaging that is instructional and motivational in tone, as described in the graphic below. Instructional-toned collateral will convey basic material instructions including, but not limited to, how to prepare materials for recycling, common contaminants, and Yes/No lists. Motivational- toned collateral will focus on awareness of system change, the benefits of the new system and how to participate. 125 circularactionalliance.org Figure 10 126 circularactionalliance.org Phase One/Year 1: Program Launch Dates: Begins July 1, 2025, extending as recommended throughout the calendar year. Phase Description: “Change is coming!” Introduction of the USCL and PRO Recycling Acceptance List. Getting the right information to the right audiences to educate and encourage them to recycle and increase awareness. Anticipated Channels: Television and cable, digital TV, digital pre-roll (including YouTube), radio, digital audio and podcasts, display on select Oregon news sites and banner ads, billboards and transit ads, search, print newspapers and community media to reach multicultural audiences, and residential mailings.  Key Insight: Based on 2023 pilots, display ads were a top source of impressions and clicks, driving website traffic at a higher rate than the rest of the tactics and showed the highest click-through rate (CTR) of the channels. Display ad average CTR is 800% higher than the average industry benchmarks, making this a great potential channel for Phase 1 Special Audience Considerations: CAA proposes to explore the option of creating (not simply translating) an original Spanish language campaign that would parallel the English statewide campaign Desired Outcomes:  Drive audiences to key PRO resources (i.e., the PRO’s website)  Increase awareness of new recycling guidelines, including both the USCL and PRO Recycling Acceptance List  Increase public confidence in Oregon’s recycling program  Begin to drive increased participation Phase Two/Years 2 and 3: Continued Engagement Phase / Material-Specific Supports Dates: January 2026 through December 2027 Phase Description: Deliver support to effectively engage frequent, infrequent, and non-participating audiences and achieve increased capture of target materials. It is also possible that during these subsequent years, additional changes will be made to the USCL and PRO Recycling Acceptance List, and therefore elements of this phase will need to be focused on communicating those changes and managing customer expectations. Anticipated priority channels:  Leverage moments of change (e.g. recycling welcome kits for residents who fill out change of address forms)  CBO engagements, especially for equitable outreach 127 circularactionalliance.org  Ads: television and cable, digital TV, digital pre-roll (including YouTube), radio, digita audio and podcasts, community media, Google search, Meta, native, phone texts, CTV/OTT (streaming TV) Desired Outcomes:  Continue to drive audiences to key PRO resources (e.g., the PRO’s website)  Continue to build confidence in Oregon’s recycling program  Achieve increased participation in local recycling programs and PRO depots  Increase the capture of recyclable materials, with a focus on underperforming target materials Campaign Applications and Channels CAA proposes the following campaign, intended to be deployed in the phased approach described above: o Advertising assets: Video, radio, banner, social, outdoor, print, search and community media ads. o Recycling signage/decals for depots, enclosures and carts o Print materials: Up to three brochures or full-page flyers as well as a mailer, cart tag and a door hanger iv. A Culturally Responsive Approach CAA will ensure that educational materials and campaigns are culturally responsive to diverse audiences across this state, pursuant to ORS 459A.893(3). This includes, at a minimum:  Including people who speak languages other than English and people with disabilities  Ensuring materials, including labels/in-mold graphics for roll carts, are printed or produced in languages other than English and are accessed easily and at no cost to local governments and users of the recycling system Translation and Transcreation CAA proposes to translate and transcreate all education and outreach materials into those languages spoken in Oregon by at least 2,000 people over the age of five who spoke English less than very well according to the most recent American Community Survey. These languages are Spanish, Simplified Chinese, Traditional Chinese, Korean, Arabic, Russian Vietnamese, Tagalog, Hindi, Somali and Ukrainian. CAA also plans to create a process through which local governments can request translation or transcreation into additional languages spoken in Oregon by at least 1,000 people over the age of five who spoke English less than very well according to the most recent American Community Survey. In-language content will be transcreated, not simply translated. CAA and partners will engage linguists and multicultural experts to ensure materials resonate with intended audiences by taking into account language, 128 circularactionalliance.org but also cultural relevancy. For example, materials for different multicultural communities would be designed with images of recyclable items that are most commonly found in the households of the community that is being targeted. CAA understands that under ORS 251.167, information on the most-commonly spoken languages in the state of Oregon and its counties is updated periodically for the purpose of disseminating accessible information on voting to the public. CAA will use this information in formulating and updating its plan to fulfill these accessibility requirements. Translations and transcreations include up to 10 digital ads, recycling enclosure signs, three brochures or full-page flyers, and up to three print designs (either for a postcard, mailer, door hanger or similar sized piece). Co-Creation Co-creation will be employed for development of campaign materials and multifamily outreach. Co-creation gives community members a chance to participate in campaign design through community-level listening sessions to deepen mutually beneficial relationships. Other connective strategies could be use of an advisory board, active liaisons, or trusted advisors. Accounting for Future Diversity The U.S. Census Bureau considers Oregon among the states rapidly becoming more diverse with time. Any outreach plans developed to educate and inform the public about recycling should strive to be responsive to future changes to Oregon resident demographics. CAA will closely monitor updates in the American Community Survey to ensure transcreation and other elemtns of the education and outreach strategy remain in line with demographic shifts within the state. Engagements with Community-Based Organizations To achieve an inclusive and equitable education and outreach program, CAA plans to engage community- based organizations (CBOs) as advisors to its education and outreach efforts, as well as implementation partners. Throughout the program plan period, CAA will consult with at least 10 community-based organizations to secure their feedback on USCL and PRO Recycling Acceptance List images, key terms, instructions and communications strategies. CBO participants will be compensated for their participation in consultations. To ensure that translation and transcreation work is effectively informed by local expertise, CAA also intends to work with CBOs to recruit participants for audience research relating to the creation of materials in Spanish, Simplified Chinese, Traditional Chinese, Korean, Arabic, Russian, Vietnamese, Tagalog, Hindi, Somali and Ukrainian. Designed for Accessibility 129 circularactionalliance.org Educational materials created for the campaigns will follow ADA compliance and best practices as well as the principles of universal design, where products, services or environments are designed so that anyone – no matter their age or ability – can use that design with minimal or no accommodations. Examples include:  Considering color blindness and legibility when selecting color palettes, fonts, text size and imagery. This could include avoiding small print and reverse type and leveraging color blindness testing tools for designers  Ensuring all elements meet or exceed the Web Content Accessibility Guidelines 2.1 AA (WCAG) requirements  Building accessible features into electronic versions of collateral that are intended for the general public so they include “alt text” for images and all copy and visuals are “screen reader ready”  Using plain language and using simple sentences with relevant examples  Making use of imagery, icons and other visuals rather than large blocks of text to more quickly and easily communicate information and demonstrate processes  Providing materials in a range of formats to reach across digital access and literacy gaps (e.g. digital ads as well as television, radio, print, and outdoor ads and offering detailed information via websites as well as printed mailers and brochures) 130 circularactionalliance.org v. Schedule Including Proposed Timings for Start-Up Approach CAA and its partners propose to develop educational collateral and the subsequent implementation strategy of the statewide promotional campaign in a deliberate and phased approach. Batches of collateral and their expected release dates are summarized in the below graphic. Figure 11 The visual timeline for this proposed implementation plan can be found in the preliminary program implementation timeline featured in Appendix M. June - September 2024:  Quantitative survey of Oregon residents, analysis, and reporting of results and key findings  Develop campaign strategy based on survey results and existing best practices  Preliminary concepting for the campaign  Kick off engagement with CBOs and local governments to consult on strategy  Work with ORSAC to set a presentation schedule through July 1, 2025  Confirm the material approval schedule with OR DEQ through July 1, 2025. Late September 2024:  Proposed Activity: Consult with ORSAC Education and Outreach Committee to review and provide Quantitative Audience Survey results, campaign name and logomark. August-October 2024:  Develop USCL instructions/communications strategy, including key terms 131 circularactionalliance.org  Local government review of USCL instructions/communications strategy, including key terms Late October 2024:  Proposed Activity: Consult with ORSAC Education and Outreach Committee to review and provide feedback on the draft campaign concept prior to testing.  Conduct qualitative interviews with CBOs and representatives from local governments to test and refine the campaign concepts Early December 2024:  Proposed Activity: Detailed report on audience research and campaign concept recommendation presented to ORSAC, with materials to be provided at least two weeks prior December 2024 – March 2025  Conduct qualitative audience testing to inform transcreation of outreach materials  Produce batch 1 materials (those required for April 4, 2025 distribution): USCL guide, label/in-mold graphic for roll carts, style guide, messaging timeline, newsletter article, web domain/QR code  Local governments to review batch 1 materials over two periods  Initial drafting of batch 2 materials (those required for May 16, 2025 distribution): Social toolkit, press release, newsletter article, website with “change is coming” messaging, print materials - USCL mailer/poster, postcard, bill insert, depot/enclosure signage, available in agreed-upon languages  Local governments to review the relevant parts of batch 2 materials over two periods  Develop media planning strategy and establish hotsheet of advertising specifications March 2025:  Proposed Activity: Present batch 1 materials to ORSAC  Submit batch 1 materials to DEQ for approval Key Deliverables by April 4, 2025 The following guidance documents and editable design files will be available to local governments and service providers for download: 1. Images of all materials on the USCL, materials being removed from lists around the state, and contaminants of concern, in both low and high resolution 2. A label/in-mold label graphic for roll carts 3. A style guide to help ensure waste generators experience a unified aesthetic and feel whenever and wherever they receive recycling information in the state (see attached example of Metro 132 circularactionalliance.org Multifamily Decals and Signage Playbook) that includes fonts, colors, as well as a vetted list of terms (e.g., when to use “bins” versus “carts,” “recycling” versus “recyclable materials,” etc.) in agreed-upon languages 4. A recommended phased messaging timeline for local governments and service providers to adhere to 5. A customizable newsletter-style article with “change-is-coming" messaging (i.e., “Change is coming July 1 and why, look for more information in June”) 6. A QR code to public-facing website with an identifiable and memorable domain name that local governments and service providers can use to direct their residents/customers to more information March – June 2025  Complete production of batch 2 materials for May 16 distribution.  Initial drafting of batch 3 materials (those required by July 4) - Website strategy, design, development and QC to have live, updated with downloadable materials.  Initial production of batch 4 materials (those required by August 1) in English - ad materials - video, radio, banner, social, native, OOH, print, search.  Local governments to review batch 4 English materials over two 2-week periods  Upon approval of English materials, transcreated materials will be developed  PR planning, messaging and materials development (early milestone is 'change is coming' release)  Initiate business association outreach  Initiate mail house coordination  Design, build and test education and outreach electronic portal Key Deliverables by May 16, 2025 Electronic Portal launches by May 16 to support outreach efforts conducted by local government and service providers. The following materials will be available for download via electronic portal: 1. Social media toolkit with “change is coming” messaging in agreed-upon languages 2. Example and customizable brochure in agreed-upon languages that is simple, clear, and free of jargon that also serves as mailer/poster and includes: a. Basic preparation information (“empty and dry”) b. Top 3-5 contaminants to keep out c. Limited Yes/No poster that can be posted near receptacles and includes a QR code to the public-facing website with comprehensive list of accepted items and contaminants 133 circularactionalliance.org 3. Additional example and customizable resources, including social media toolkit, newsletter, postcard, billing insert, press release, available in agreed-upon languages, that deliver the following messages: a. The system is changing July 1 and why b. Benefits of the new system c. How to participate—action steps 4. Example and customizable container stickers and depot/enclosure posters and signage in agreed- upon languages, available in different sizes developed through consultation with local government 134 circularactionalliance.org May – June:  Complete production of batch 3 materials for July 4 release.  Ongoing business association outreach  Ongoing mail house coordination  PR planning, messaging and materials development (early milestone is 'change is coming' release)  PR materials development (early milestone is 'change is coming' release).  Initiate media negotiation and coordination Key Deliverables by July 4, 2025 The following print materials will be available for local governments and service providers to order for delivery by July 4, available in different sizes developed through consultation with local governments in agreed-upon languages, made of waterproof materials that are appropriate for indoor and outdoor use: 1. Signage for depots and commercial and multifamily recycling enclosures 2. Stickers for roll carts/containers A live public-facing website with memorable domain name, populated with change-is-coming messaging will also be available by June 1. Information posted to the site will explain/include the items below. Information will be available/accessible in all agreed-upon languages: 1. The Oregon recycling system is changing July 1, and why 2. The benefits of the new system 3. How to participate—action steps 4. A downloadable poster to hang near receptacles that includes: a. Basic preparation information (“empty and dry”) b. Limited Yes/No list c. QR code to the website itself with comprehensive list of accepted items and contaminants 5. A complete Yes/No list for materials, closer to https://www.oregon.gov/deq/recycling/Documents/rmaMatAccept.pdf, but using customer- friendly terminology 6. Detailed preparation information and list of common contaminants Key Deliverables by August 1, 2025  Formal campaign launch  All other USCL educational resources made available 135 circularactionalliance.org 2026-2027  Campaign continues as described in the campaign section of the education and outreach plan vi. Relevant experience Given its widespread reputation as a leader in recycling education, The Recycling Partnership has worked with CAA to develop plans for the education and outreach aspects of the program plan. CAA will also consult with The Recycling Partnership to execute the education and outreach plan. CAA believes the team tasked with delivering this work needs to have:  Industry Knowledge – A deep understanding of the recycling and waste management sector, including knowledge of current trends, challenges, and opportunities specific to Oregon. The qualified firm will have considerable experience with deploying recycling education and outreach campaigns that measurably improve the performance of recycling programs  Communication Expertise – Proven experience in developing comprehensive communication strategies that resonate with diverse audiences. The firm will show demonstrated proficiency in utilizing various communication channels, including traditional media, social media, and digital platforms  Stakeholder Engagement – Experience identifying and engaging with key stakeholders, including local governments and recycling service providers. This experience should extend to building collaborations to enhance the reach and impact of campaigns  Campaign Development – Previous success in developing and implementing large-scale, statewide campaigns. The goal is outreach that leverages creativity and innovation to craft compelling messages and materials that effectively convey the campaign's goals  A Data-driven Approach – Utilization of data and analytics to inform the development of materials and to measure the success of outreach interventions  Cultural Sensitivity – Understanding of the cultural diversity within the state, ensuring that the campaign is inclusive and resonates with various demographic groups  Adaptability – Flexibility to adapt strategies based on feedback, changing circumstances, and emerging trends 136 circularactionalliance.org Financing a. Membership Fee Structure and Base Fee Rates i. Reporting Categories (Product Speciation for the Fee Structure) CAA proposes a product speciation list of 60 material categories, grouped by eight material classes as described below. This list was developed based on our understanding of the RMA requirements, our experience with EPR programs in other jurisdictions, and the USCL and PRO accepted material lists developed by DEQ as a part of rulemaking. We also considered its potential for “nestability” with other EPR programs, such as California, to enable producer reporting synergies between Oregon and other state programs. Until producers report their actual weights of supplied materials in the first quarter of 2025, CAA can only provide the CAA fee methodology and interim base fee estimates. In the third program plan due in December 2024, CAA will provide an updated base fee schedule, encompassing 60 material categories and with updated system costs based on the results of the Oregon Recycling System Optimization Project (ORSOP), which is estimated to account for about 50% of program costs. Material Class Reporting Category - Revised Accepted: USCL or Accepted: LG Depot PRO RAL Newspapers Y N Newsprint (inserts and circulars) Y N Printing and Writing Paper Magazines, Catalogs and Directories Y N Paper for General Use Y N Other Printed Materials Y N Glass Bottles and Jars & Other Containers N Y Glass and Ceramics Ceramic - All Forms N N Aluminum Containers Y N Aluminum Foil and Molded Containers N Y *Aluminum Aerosol Containers N Y Aluminum Other Forms N N Metal Steel Containers Y N *Steel Aerosol Containers N Y Steel - Other Forms N N Metal - Small Format Y Y *Pressurized cylinders N Y Paper/Fiber Aseptic and Gable-top Cartons Y N 137 circularactionalliance.org Kraft Paper Y N Corrugated Cardboard Y N Corrugated Cardboard (Tertiary/transport) non- consumer Y N Paperboard Y N Polycoated Paperboard N N Other Paper Laminates N N Other Paper Packaging Y N Paper - Small Format Y N PET (#1) - Bottles, Jugs, and Jars (Clear/Natural) Y N PET (#1) - Bottles, Jugs, and Jars (Pigmented/Color) N N PET (#1) - Tubs Y N PET (#1) - Thermoformed Containers, Cups, Plates, Trays N N PET (#1) - Lids N N PET (#1) - Other Rigid Items N N HDPE (#2) - Bottles, Jugs and Jars (Clear/Natural) Y N HDPE (#2) - Bottles, Jugs and Jars (Pigmented/Color) Y N HDPE (#2) - Pails & Buckets Y Y HDPE (#2) - Tubs, Nursery (plant) pots & trays Y N HDPE (#2) - Package Handles, Lids N Y HDPE (#2) - Other Rigid Items N N PVC (#3) - Rigid Items N N LDPE (#4) - Bottles, Jugs and Jars N N LDPE (#4) - Lids N Y Plastic - Rigid LDPE (#4) - Other Rigid Items N N PP (#5) - Bottles, Jugs and Jars Y N PP (#5) - Tubs, Pails and Buckets, Nursery (plant) pots & trays Y Y PP (#5) - Lids N Y PP (#5) - Other Rigid Containers, Cups, Plates, Trays (non-nursery (plant)) N N PP (#5) - Other Rigid Items N N *PS (#6) Expanded/Foamed Hinged Containers, Plates, Cups, Tubs, Trays, and Other Foamed N N Containers *PS (#6) White Expanded/Foamed Cushioning and Void Fill N Y *PS (#6) Colored Expanded/Foamed Cushioning and Void Fill N N PS (#6) Rigid Non-Expanded N N PLA, PHA, PHB - Rigid Items N N Other/Mixed Rigid Plastic N N Plastic - Flexible HDPE (#2)/LDPE (#4) Flexible and Film Items N Y 138 circularactionalliance.org HDPE (#2)/LDPE (#4) (Pallet Wrap) non-consumer N Y PP (#5) Flexible and Film Items N N PLA, PHA, PHB - Flexible and Film Items N N Plastic Laminates and Other Flexible Plastic Packaging N N Plastic - Small Format N Y Plastic containers for motor oil, antifreeze, or other Plastic - Other automotive fluids, pesticides or herbicides, or other hazardous materials (flammable, corrosive, reactive, N N toxic) Wood and Other Organic Materials Wood and Other Organic Materials N N Table 16 ii. Development of the Base Fee Algorithm In the fall of 2023, CAA began developing a national fee-setting methodology to be deployed to all EPR enacted states where CAA is a PRO. While the methodology development will continue in 2024, CAA developed a set of guiding principles to guide the development of fair and equitable fees payable by producers. The guiding principles underpinning the fee-setting methodology are: CAA Fee-Setting Guiding Principles 1. Harmonization: The national fee-setting methodology will be used consistently across states, but the fee rates will vary by state due to state requirements and program costs. 2. Fairness: Producers supplying covered materials to consumers must contribute to the costs of the recycling system, including producers that use materials that are not recycled. 3. Material-Specific Costs: Fee rates will reflect material-specific management costs in each state using the best available data. 4. Commodity Revenue: Fee rates will reflect state-specific commodity revenues, and these revenues will be attributed to the corresponding material categories that earned them. 5. Ecomodulation: Fee-setting will account for measurable environmental objectives and state- mandated ecomodulation policies. 6. Responsible End Markets: Fee-setting will factor in the development and maintenance of viable responsible markets with any associated costs attributed to the material category that requires end market development. 7. Clarity: Fee-setting materials and consultations will be prepared and conducted in a manner that clearly communicates to producers the principles, methodologies and approach that CAA is using to determine fee rates. 139 circularactionalliance.org These principles provide guidance for the development of a fair, transparent and effective fee-setting methodology for producers. For covered materials that are neither collected nor recycled, producers will still incur fees to cover the cost of the recycling system in accordance with the Fairness principle. CAA Fee-Setting Methodology (Base Fees) As part of the fee-setting development process, CAA evaluated past and present frameworks used in other jurisdictions that have implemented EPR for paper, food serviceware and packaging. CAA developed a fee- setting methodology to set the preliminary base fees for the Oregon program plan submission. This methodology is considered interim because further fee-setting considerations, such as the development of the graduated fee algorithm, will be advanced in subsequent program plan amendments. Given the complexity of preparing producers for implementation of ecomodulation, further consultation will be required with stakeholders in light of DEQ’s proposed LCA impact rule concepts. The base fee-setting methodology allocates the estimated material management costs to covered materials based on their share of supply tons. Material cost variation exists by incorporating material-specific indices generated by an Oregon-based Activity-Based Costing model into the fee allocations. The indices represent the varying costs that each material drives in the recycling system as it is being managed throughout the recycling supply chain from collection to transfer and consolidation, and then transportation to processing facilities. These are used to approximate the relative cost proportionality of covered materials managed in the program to avoid arbitrary cross-subsidization outcomes and to ensure that the statute requirement under ORS 459A.884(3)(b) is satisfied. Program generated revenues are attributed to the materials that earned those revenues to reduce their share of material management costs. The base fee schedule will be updated annually at a minimum, to reflect changes to producer supply tons, system operations and costs. The base fee schedule meets the state-mandated requirement under ORS 459A.884(3)(a), where the average base fee rate for covered materials that are not accepted for recycling must pay higher average fees than those materials that are accepted for recycling in Oregon. Summary  The CAA base fee-setting methodology ensures fairness for producers by differentiating material fees based on a material’s supply, cost and revenue profiles  Materials with the highest supply quantities and management costs pay the highest share of costs  Materials generating the most commodity revenues benefit from the largest reduction in costs  Materials that are recycled at high rates do not pay a higher share of costs relative to lower performing materials. This ensures that the core fee principles of Fairness, Material-Specific Costs and Commodity Revenues are upheld 140 circularactionalliance.org Separate Allocations for USCL and PRO Recycling Acceptance List Materials In the Oregon program, there are three separate groups of covered materials: USCL, PRO recycling acceptance list, and materials not accepted for recycling. The first two groups have distinct management systems and funding obligations, e.g. the PRO is obligated to fund the expansion of on-route collection of USCL materials but not the actual collection services of USCL materials, whereas for materials on the PRO recycling acceptance list, the PRO must develop a depot network to receive these materials and then transfer them to a sorting facility or end market. To avoid cross-subsidization of the fees between these groups, the allocation of materials management costs is done within cost boundaries between these material groups. While materials not accepted for recycling do not incur actual management costs, they contribute their portion of fees based on their share of supply tons multiplied by cost indices of similar materials. Specifically Identified Materials (SIMs) and other strategic materials targeted for investments are assigned investment costs directly based on their needs. Metrics and Other Data Inputs Used to Set Fees In developing the preliminary fees, CAA relied on estimates and data modeling of critical data inputs provided by CAA project team members and those with expertise in the field. CAA relied on Oregon-specific data where possible to conform with CAA’s fee-setting principles. Once the Oregon program plan launches, CAA will use actual supply and recycling data to inform fee-setting. Allocation of Non-Material Management (Indirect) Costs Non-material management costs include program operations and administration, program development and regulatory costs. These costs have different cost drivers than material management costs and are often borne by all covered materials. As a result, these costs are allocated to materials using a consistent but different approach than material management costs. Publisher In-Kind in Lieu of Paying Fees (Print and Online Advertising) In accordance with ORS 459A.884(7), CAA shall accept the value of print and online advertising services in lieu of all or a portion of fees payable by newspaper or magazine publishers. Once the fees are determined, CAA will work with the publishers to arrange for advertising products and services of value to offset CAA’s education and outreach expenditures, which can be used to offset the costs CAA would incur in implementing the plan. The portion of fees payable in cash by publishers will be negotiated. CAA will not build additional “cushion” into base fees to cover in-kind contributions It may be expected that newspaper and magazine publishers will still pay a portion of base fees to cover administrative costs. More details are forthcoming in the December program plan. 141 circularactionalliance.org Confidentiality As per OAR 340-090-0710(2), CAA’s fee-setting methodology is considered proprietary and confidential information. The detailed methodology will be included as part of a confidential addendum to the Program Plan submission. iii. Interim Base Fee Schedule Ranges CAA is publishing interim fee rates for 16 different fee categories using three illustrative fee scenarios in the September program plan, in response to the need of producers to have information to budget their EPR costs in Oregon. The program costs informing these interim fees lie within the same budget range as presented in the March program plan. The goal is to provide budgetary guidance to Oregon producers on the direction of their 2025 fees, prior to June 2025. By using the three scenarios of fees with varying levels of estimated supply tons, CAA is also creating awareness for producers about the critical impact that supply reporting has on the variability of material fee rates. Note that uncertainty around fee rates remains in place, due to incomplete program cost information and a lack of producer supply data. Until producers report their actual amount of supplied materials in the first quarter of2025, only the fee-setting methodology and a range of fee estimates can be provided. In the December plan submission, CAA will publish an updated program cost budget that is informed by the outcomes of the Oregon System Optimization project (ORSOP), and CAA will also be in a position to publish an interim base fee schedule with fee rates for 60 material categories for DEQ’s approval. The final 2025 detailed fee schedule will be published in June 2025 after Oregon producers complete their supply reporting. 142 circularactionalliance.org Interim Base Fee Rate Estimates – Simplified Fee Schedule Scenarios Low Medium High 15 ¢/lb 21 ¢/lb 26 ¢/lb Material Categories Low Medium High Printing and Writing Paper 4.0 ¢/lb 5.0 ¢/lb 7.0 ¢/lb Paper/Fiber - Accepted 12.0 ¢/lb 17.0 ¢/lb 21.0 ¢/lb Paper/Fiber - Non-Accepted 13.0 ¢/lb 18.0 ¢/lb 22.0 ¢/lb Paper/Fiber - Corrugated Cardboard (Tertiary/transport) non- consumer 4.0 ¢/lb 5.0 ¢/lb 6.0 ¢/lb Rigid Plastics - Accepted 36.0 ¢/lb 51.0 ¢/lb 63.0 ¢/lb Rigid Plastics - Non-Accepted 70.0 ¢/lb 98.0 ¢/lb 121.0 ¢/lb Rigid Plastics - Expanded PS 140.0 ¢/lb 195.0 ¢/lb 242.0 ¢/lb Flexible Plastics - Accepted (PE film) 53.0 ¢/lb 75.0 ¢/lb 92.0 ¢/lb Flexible Plastics - Non-Accepted 82.0 ¢/lb 115.0 ¢/lb 142.0 ¢/lb Flexible Plastics - HDPE (#2)/LDPE (#4) (Pallet Wrap) non- consumer 16.0 ¢/lb 23.0 ¢/lb 28.0 ¢/lb Plastic - Other 117.0 ¢/lb 163.0 ¢/lb 202.0 ¢/lb Metal - Accepted 16.0 ¢/lb 22.0 ¢/lb 27.0 ¢/lb Metal - Non-Accepted 17.0 ¢/lb 24.0 ¢/lb 29.0 ¢/lb Glass 13.0 ¢/lb 18.0 ¢/lb 22.0 ¢/lb Ceramics 92.0 ¢/lb 128.0 ¢/lb 158.0 ¢/lb Wood and Other Organic Materials 20.0 ¢/lb 28.0 ¢/lb 35.0 ¢/lb Accepted Materials 12.4 ¢/lb 17.4 ¢/lb 21.6 ¢/lb Not Accepted Materials 43.1 ¢/lb 60.3 ¢/lb 74.6 ¢/lb Table 17 Note the fees are directly proportional to the reported volumes, underpinning the importance of accurate producer reporting in advance of the July 1, 2025 program start date. With the completion of ORSOP late 2024, CAA will be in an improved position to finalize the program budget and present fee rate estimates for the proposed 60 fee reporting categories in the third Program Plan submission. The rates can only be finalized, however, once producer supply data is received in the first quarter of 2025. Flat Fees In accordance with ORS 459A.884(6), CAA proposes tiered uniform fees for low volume producers with gross revenues of less than $10 million or covered materials sold for use in Oregon of less than five metric tons. Producers with gross revenues of less than $10 million but supplying covered materials sold for use in Oregon greater than five metric tons may also choose to pay a flat fee according to the following schedule: 143 circularactionalliance.org Tiered Flat Fee Structure (for producers with gross revenues of $5m up to $9.999m) Annual Supply Tons (Metric) Low Med High 1 to 2.5 tons $600 $800 $1,000 Over 2.5 tons to 5 tons $1,300 $1,800 $2,200 Over 5.0 to 7.5 tons $2,100 $2,900 $3,600 Over 7.5 tons to 10 tons $2,900 $4,000 $5,000 Table 18 DEQ’s feedback to CAA from the first program plan was to extend the tonnage tiers to allow low volume producers with greater than five tons to participate. DEQ also suggested that low volume producers who do not wish to declare which tier they belong to should pay the highest level of flat fees. Low volume producers who are eligible to pay flat fees have the option to: 1. Report all packaging weights and pay actual base fees 2. Report against a flat fee tier reflecting a producer’s total weights, and pay the corresponding flat fee, or 3. Not report at all, and pay the highest flat fee iv. Producer Fee Incentives, Other Than Graduated Fee Adjustments Oregon’s Recycling Modernization Act mandates that the average fee rate for covered materials that are not accepted for recycling be higher than the average fee rate for covered materials that are accepted for recycling, as outlined in ORS 459A.884(3)(a). This statutory requirement is arguably a fee incentive that is implemented within the base fee structure, outside of Graduated Fees. v. Meeting the Statutory Requirement In accordance with ORS 459A.884(3)(a), the preliminary base fees for both base and high scenarios satisfy the requirement for the average base fees for covered material not accepted for recycling to be higher than the average base fees for covered materials that are accepted for recycling in Oregon. These are shown in the table on the next page. 144 circularactionalliance.org Avg. Fee Base Case High Case USCL 6 ¢/lb 10 ¢/lb PRO 27 ¢/lb 50 ¢/lb N/ A 31 ¢/lb 57 ¢/lb 15 ¢/lb 26 ¢/lb Table 19 As the materials not accepted for recycling tend to be costlier to manage than USCL and PRO recycling acceptance list materials, their resulting average fee rate is higher than that of materials that are accepted for recycling. In addition, the fee-setting methodology incorporates a discretionary state-adjustment factor to ensure that this condition is met. It is activated only when the average fee of not accepted materials is lower than the average fees of accepted materials. To satisfy the state-mandated condition, this factor shifts material management costs from the group of accepted materials to non-accepted materials using the “goal seek”13 function in Microsoft Excel, to generate a positive delta between the average base fees of not accepted materials and accepted materials. Once transferred, the costs are allocated amongst the non-accepted materials based on their material management cost proportions. Below are the calculation steps for the state-adjustment factor: 1. One hundred percent of the material management costs are allocated by material specific supply tons using the material cost indices generated from activity-based costing.  The non-material management costs are allocated by the material management cost allocation ratio. 2. The average fees of accepted and not accepted material are calculated, as shown in the below table. If the accepted material fee is lower than the not accepted material fee, then the requirement is met, and no further action is required. 3. However, if the accepted material fee is higher than the not accepted material fee, as in the below example where the fee per ton for not accepted materials is at $88.98 and accepted material is at $103.24 (which is lower by $14.26), then the requirement is not met. 4. In the next step, an optimized percent (8%) of material management cost is assigned to not accepted materials to make their fees higher than accepted materials. Excel goal seek function (Newton-Raphson method) is used to calculate the optimized percent to create a positive difference between accepted and not accepted materials. The remaining 92% of material management cost is allocated using the supply tons and material cost index. 13 Technically known as the Newton-Raphson method. 145 circularactionalliance.org 5. The non-material management costs are allocated by the new material management cost allocation ratio after the state-adjustment factor calculation. 6. The new fee per ton will meet the requirement as demonstrated in the table below: The numbers mentioned in the example are for illustrative purposes only. Average Fee per Ton Average Material Type with State-Adjustment Fee per Ton Factor Accepted $103.24 $95.10 Not Accepted $88.98 $96.10 Difference -$14.26 $1.00 Table 20 This factor and its application are designed so that:  Only the minimum required costs are redistributed from accepted materials to non-accepted materials to ensure minimal cost impact on producers in the non-accepted group because they exert no control over whether their materials are accepted or not, and  There is no need to determine arbitrary costs to assign onto non-accepted materials because the model algorithm will calculate the minimum costs required to be transferred. 146 circularactionalliance.org b. Graduated Fee Algorithm and Methods i. The Algorithm and Accompanying Descriptive Text for the Proposed Graduated Fee Structure As per ORS 459A.875(2)(a)(F), the Oregon program shall encourage producers to make continual reductions in the environmental and human health impacts of covered materials. This is to be administered through a graduated fee structure, also called ecomodulation, as described in ORS 459A.884, that can be used to adjust fees for producers who make or have made impactful changes to the ways in which they produce, use and market covered materials in Oregon. According to DEQ’s latest “Guidance on Ecomodulated Fees,” while the law requires PRO(s) to consider at a minimum the five factors14 listed in the statute, it does not require any of those factors to be included in the fee schedule.15 CAA fully supports the notion of developing a graduated fee structure to incentivize producers to continually reduce environmental and human health impacts and commits to implementing a fee methodology that meets these regulatory requirements. Because ecomodulation relies heavily on robust SKU-level packaging data, CAA needs to ensure sufficient readiness on the part of producers to capture this type of data and on the part of CAA’s internal portal and systems to be able to intake non-weight supply-based data. To be prudent, CAA will also need to model out financial impacts to the program with the introduction of any ecomodulation scheme. Introducing ecomodulation in the first program plan period is challenging. Generally, in other jurisdictions where PROs have introduced ecomodulation adjustments, they have done so for mature programs that already have established material base fees, have had time to ensure accurate producer reporting, and have the historic data necessary to model the financial impacts of different types of fee adjustments. CAA supports the notion of developing ecomodulation to incentivize producers to continually reduce environmental and human health impacts. CAA’s approach to providing ecomodulation in line with Oregon legislation and administrative rules is described below. DEQ’s proposed draft life cycle evaluation (LCE) rules, specifically OAR 340-090-0910(3), require producer responsibility organizations to offer two bonuses for voluntary disclosure in a project report of a producer’s 14 The five factors listed in 459A.884(4) are (a) The post-consumer content of the material, if the use of post-consumer content in the covered product is not prohibited by federal law; (b) The product-to-package ratio; (c) The producer’s choice of material; (d) Life cycle environmental impacts, as demonstrated by an evaluation performed in accordance with ORS 459A.944; and (e) The recycling rate of the material relative to the recycling rate of other covered products. 15 DEQ (2024). Guidance on Ecomodulated Fees - Plastic Pollution and Recycling Modernization Act (SB 582, 2021), pg. 3. 147 circularactionalliance.org life cycle environmental impacts of one or more of its covered materials. CAA will comply with these rules, if adopted by the Environmental Quality Commission, in this initial program plan. The second bonus required by DEQ, the Substantial Impact Reduction Bonus, requires producers interested in obtaining the bonus to make a before and after life cycle evaluation of the impacts of a change to a covered material. This evaluation includes data and comparison on the following covered material attributes. In the first program plan period, CAA will offer two voluntary LCA bonuses16 to producers. The high-level principles underpinning the design of these bonuses are:  Phase in implementation and introduce caps to limit financial exposure to the program  For Bonus A, the level of incentives should correlate with the level of supply  For Bonus B, the level of incentives should correlate with the level of supply and environmental impact reduction  The level of incentives must not exceed the producer’s base fees for a material category  All producers are paying their fair share of fees and will be eligible to receive bonuses proportional to their level of impact To align with administrative rules, both bonuses require the producer to conduct an LCA in accordance with DEQ’s life cycle evaluation rules (LCE rules) and prepare a qualifying project report for certain covered materials in their packaging portfolio. The cost of LCAs can vary widely, depending on whether each producer has in-house capabilities to develop LCAs or will need to contract out the development of LCAs. The process of third-party verification of the LCAs, which is also required by the LCE rules, will also impact the costs. Because of this wide variability in costs on producers, the level of the bonus set should correlate with the level of impact or action of a producer’s packaging. Accordingly, CAA will index the bonuses to a producer’s supply quantity of the covered material. This approach creates more of a level playing field for all producers, because producers are paying fees and receiving bonuses proportional to their supply quantities and are eligible to receive bonuses proportional to their level of environmental impact. Bonus A – Awarded to Producers for Evaluating the LCA of a SKU (or Batch17 of SKUs) and Disclosing the Results in an LCA Project Report CAA will provide Bonus A to producers that perform an LCA and disclosure on up to 10 stockkeeping units, or SKUs, in accordance with DEQ’s LCE standards. In future years, CAA may consider a revision to the number of SKUs per producer eligible for this bonus, pending feedback from DEQ. The LCA needs to be completed 16 These LCA evaluation requirements for the bonuses are separate from the LCA mandated requirements of the top 25 producers who are required to conduct LCAs on their 1% of SKUs. 17 DEQ proposed rules allow for batch evaluations (an LCA performed on multiple SKUs using the same primary packaging material or that are part of the same product category). 148 circularactionalliance.org on or after July 1, 2025. CAA will set Bonus A at 10% of base fees,18 associated with all primary materials in the SKU that is being assessed. Bonus A will be capped at $20,000 for each SKU or batch of SKUs that are evaluated and disclosed in a project report that conforms to the final LCE rules and procedures. As CAA gathers more data and understanding of the impact of bonuses on the budget and on producer participation, CAA will reassess the cap on the bonus. Bonus A will be applied to all primary packaging materials reported and associated with the SKU or batch of SKUs. Secondary and tertiary (transport) packaging will not be eligible for the bonus because these types of packaging typically are not part of producer packaging decisions. CAA will pay out Bonus A as a credit to the fee invoice to be issued in the program year following receipt and approval of a compliant LCE project report (i.e., Bonus A LCEs received in 2025 will be paid out in 2026). The theoretical example below shows the impact of Bonus A. Bonus A Example Scenario 1 • Producer A supply = 100,000 lbs PET • LCA for a soap SKU (primarily PET) • Fee rate = 75 c/lb • SKU supply weight = 25,000 lbs • Total payable base fees = $75,000 • Bonus award = 60 c x 10% x 25,000 lbs = $1,500 • Fee rate breakdown of 75 c/lb: • Net fees payable is $73,500 o 60 c = cost of managing PET and program administration Scenario 2 o 15 c = program reserves including eco-modulation • LCA for a soap SKU and condiment SKU (primarily funds PET) • Discount will only apply to 60 c, the portion of base • Soap SKU supply weight = 25,000 lbs fees excluding reserves. • Condiment SKU supply weight = 50,000 lbs • Bonus award = 60 c x 10% x 75,000lbs = $4,500 • Net fees payable is $70,500 Figure 12 18 Base fees are the material-specific fees associated with the primary material under LCA evaluation (before any bonuses). Base fees will cover the costs of material management, non-material management and accumulation of program reserves. The 10% bonus will be calculated on the base fees, excluding the portion for program reserves. 149 circularactionalliance.org Bonus B – Awarded to Producers for Evaluating the LCA of a SKU (or Batch of SKUs) and Disclosing the Results in an LCA Project Report, and Demonstrating Significant Impact Reductions to their Packaging Bonus B is still under development and will be further updated in the December program plan submission. The current plan for Bonus B is that it will be provided to producers that conduct an LCA that demonstrates significant impact reductions through a packaging change they performed on a SKU or batch of SKUs. Changes to packaging on or after July 1, 2025 qualify; the LCA demonstrating the significant impact reduction needs to be completed and submitted to CAA no earlier than July 2027, to be applied to any payable 2028 program fees. CAA will provide a graduated level of bonus based on three impact reduction tiers:  Tier 1: impact reduction of 10%-25%  Tier 2: impact reduction of greater than 25%-40%  Tier 3: impact reduction of greater than 40% CAA will set Bonus B higher than Bonus A across all three impact reduction tiers. The total bonus CAA awards will be based on a multiplier applied to Bonus A up to an appropriate cap that will provide greater incentive for producers to apply for Bonus B than for Bonus A. Bonus B will be applied to the core primary packaging material associated with the SKU or batch of SKUs only. Secondary and tertiary (transport) packaging will not be eligible for the bonus because these types of packaging typically are not part of producer packaging decisions. Bonus B is currently still under development and will be further updated in the December program plan submission. CAA will develop business and eligibility rules for qualifying producers, which will include processes for document retention and verification. CAA will set the bonus levels and caps to ensure that the total bonus amounts of Bonus B will always exceed those of Bonus A, to give extra incentive to producers to apply for Bonus B rather than Bonus A. For each SKU or batch of SKUs, a producer will be eligible for either Bonus A or Bonus B, but not both bonuses. This approach will be taken is because Bonus A is intended to incentivize producers to conduct an LCA and disclose the results to the public. This bonus is paid out in one year. Bonus B is intended to incentivize producers to make changes to packaging that result in impact reductions, which can be demonstrated through an LCA evaluation. Bonus B is set higher than Bonus A because of the extra effort taken, along with the resulting impact reductions achieved. For the same SKU/batch evaluated in the LCA, there is no need to provide the producer with both bonuses because Bonus B already accounts for the effort taken to carry out the LCA comparisons and the public disclosure. CAA continues to collaborate with DEQ and producers to determine the best structure for Bonus B to ensure the bonus is equitable and accessible to producers of all sizes, the award is considered 150 circularactionalliance.org substantial relative to the resulting environmental impact reduction, and the award does not exceed the cost of performing the comparative lifecycle evaluation. CAA aims to structure Bonus B in a way that creates a stronger incentive for producers to apply for the substantial impact reduction bonus for any chosen SKU or batch, rather than the voluntary disclosure bonus. For each eligible SKU or batch of SKUs, a producer is eligible for either bonus every three years because CAA encourages producers to make assessments and packaging changes that result in impact reductions across as many SKUs as possible. Bonus Application Timelines CAA will offer Bonus A starting in the 2026 program year (the year in which producers will pay 2026 fees). CAA will require producer LCA project reports to be submitted in early fall 2025, before CAA sets the 2026 base fees in October 2025. Therefore, producers will know the bonus percentage they will be eligible for when they submit their project reports, but they will not know the actual dollar amount of the bonus because it is relative to their base material fees, which would not yet have been set. CAA will offer Bonus B starting in the 2028 program year, to allow producers extra time for data collection, to conduct LCA analyses of their impact reductions and to convert packaging to the improved design. Note that beginning in August 2025, DEQ will announce the top 25 producers. These producers are required to disclose LCAs for 1% of SKUs by December 31, 2026. It is CAA’s intention to allow the SKUs used in these top 1% disclosures to be used in a producer application for Bonus B, provided they qualify for a bonus, but not Bonus A. CAA will issue net fee invoices with bonuses credited beginning in January 2026. Beginning in 2026, producers will submit LCA reports and bonus applications along with their producer supply reports on May 31of each year. Thereafter, CAA will issue fee invoices, including bonuses awarded, each January of each following year. Figure 13 151 circularactionalliance.org Reporting Requirements and Eligibility for Bonuses Producers will be required to submit LCA project reports as a PDF in the fall of 2025 for the first year. In future years, they will report by May 31 as part of the annual reporting cycle. Each bonus is only applicable to the portion of the supply weight/fees associated with the SKU(s) in the LCA evaluation, and not to the supply weight/fees payable for the entire material category. Packaging under evaluation must be supplied in Oregon and must have been on the market for at least one year prior to application. More detailed eligibility rules will be developed as part of the ORSAC consultation process, and the ecomodulation section will be further updated in the December program plan submission. Funding the Bonus As per the CAA reserves policy, a portion of the reserves may be used for the purpose of funding incentives in the initial years when maluses are not in use. Prior to having detailed producer data, CAA cannot foresee the number of producers that will apply for bonuses but will still need to budget for providing the bonuses to qualifying producers. Whereas in a fully mature ecomodulation program, maluses may be introduced to help fund part of the bonuses, CAA will need to use a part of the program reserves (separate ecomodulation reserve funds for different material categories) to help fund the bonus program. Each producer will contribute their proportionate share toward the reserve funds through the base fees they pay. This will allow for ecomodulation to move forward on a temporary basis. Program reserves could be made up of operating reserves and ecomodulation funds (at the material class level).  Operating reserves are used for risk management, working capital, cost overruns or revenue shortfalls  Ecomodulation funds are used to administer bonuses where maluses are inadequate to offset the bonuses  With this approach, all producers will pay into both reserves each time they pay fees, but how much they actually pay is proportional to their supply weights The ecomodulation reserve fund will exist in addition to operating reserves, which the PRO will use for risk management, working capital, cost overruns or revenue shortfalls. CAA will use ecomodulation reserves, on the other hand, to administer bonuses. All producers will pay into both reserves each time they pay their fees, but the amount they will pay will be proportional to their supply weights. The bonuses will be paid out from each applicable material class (paper, rigid plastics, flexible plastics, etc.) ecomodulation reserve fund, until CAA develops enforceable maluses to in whole or in part replenish funds in each of the material class reserve pools. 152 circularactionalliance.org CAA considered two options to limit its financial exposure in the design of its LCA bonus program for the Oregon program plan. For the initial years of the program, CAA considered either: (1) allocating a total dollar amount to each of the two types of bonuses required to be offered (i.e., a limited pool of bonus funds that is first-come, first-serve), or (2) capping the amount of the bonus offered to an individual producer’s SKU. If, after the first year, it is determined the capped amounts are too low, CAA will raise the individual bonus cap amounts in subsequent annual ecomodulation fee schedule updates to encourage more producer participation. In addition, CAA also decided, as a principle, the basis for setting the level of bonus is not intended to cover costs but to be correlated to impact. The level of the bonuses is one area that is not set in the rules, and just like fees it should be at the discretion of the PRO and its producers, which are funding the program. Consideration of Other Ecomodulation Factors ORS 459A.884(4) requires producer responsibility organizations to consider five factors for ecomodulation in their graduated fee structure. These five factors are: a. The post-consumer content of the material, if the use of post-consumer content in the covered materials is not prohibited by federal law; b. The product-to-package ratio; c. The producer’s choice of material; d. Life cycle environmental impacts, as demonstrated by an evaluation performed in accordance with ORS 459A.944; and e. The recycling rate of the material relative to the recycling rate of other covered materials. Post-consumer content of the material A literature review of life cycle assessments generally shows that use of recycled materials results in a lower product environmental footprint than use of virgin materials within the same material category. The amount of the reduction varies by material. DEQ’s life cycle evaluation (LCE) rules in OAR 340-090-0930 Core Product Category Rule (1)(b)(E) states, “If a covered materials will use recovered materials, fuels, or energy then those inputs must be included in the assessment in such a way as to avoid double counting or undercounting of burdens, as described in ISO 21930:2017 §7.1.6.” Inventory data associated with recycled materials in comparison to virgin materials will be included by producers in their LCEs. If a producer increases recycled content in a material category, the single score impact factor will show the impact and benefit of increasing the use of post-consumer recycled content. Consideration of post-consumer content of the material, therefore, is already included in the LCE rules, and producers are incentivized to increase their use of post-consumer recycled material. The LCEs, however, must ensure that the benefit of recycling the material as well as the benefit of using recycled content is not calculated in a way that results in double 153 circularactionalliance.org counting of environmental benefits. Instances when CAA will consider additional bonuses or maluses related to post-consumer content in a future program plan or amendment to this plan are described later in this section. Product-to-package ratio DEQ’s LCE rules require producers’ project reports to present results on the functional unit basis of one cubic meter of capacity or one square meter of coverage, whichever is applicable to the covered material. Producers that make a change to improve their product-to-package ratio and apply for a Substantial Impact Reduction bonus will be incentivized for making this improvement – this is because the functional unit as defined in the LCE rules measures and reports on the basis of product-to-package ratio, or the amount of product delivered per kilogram or square meter of packaging. As a producer reduces the amount of packaging used to deliver an equivalent amount of product to consumers, the environmental benefit of doing so will be realized by producers in two ways. First, in reduced base fees (because less packaging is used to deliver products to consumers), and second, through the Substantial Impact Reduction bonus, which awards a bonus on the basis of product-to-package ratio. Because incentives to producers are already provided through base fees and the Substantial Impact Reduction Bonus, CAA does not envision providing additional incentives for this factor in Oregon. Producer’s choice of material As with the other factors specified in the RMA, a producer’s choice of material is reflected in the inventory data used to construct the life cycle impact assessment. A material that is less impactful on the environment on an equivalent functional unit basis than another will have a better single score impact factor calculation, and if a producer switches to it, that producer can receive a Substantial Impact Reduction bonus. In this respect, a producer’s choice of material is already reflected in the Substantial Impact Reduction bonus that CAA has included in this program plan. Instances where CAA will consider additional bonuses or maluses related to a producer’s choice of material in a future program plan or amendment to this plan are described later in this section. Life cycle environmental impacts DEQ’s LCE rules require the use of this factor. CAA will comply with the rules and provide bonuses for Voluntary Disclosure and Substantial Impact Reduction (including awarding bonuses for a producer transitioning from single-use to reusable covered materials if the LCE shows a reduction in impacts). At the current time, CAA does not anticipate providing additional bonuses or maluses for the assessment of life cycle environmental impacts beyond those required by DEQ. 154 circularactionalliance.org The recycling rate of the material relative to the recycling rate of other covered materials DEQ’s life cycle evaluation (LCE) rules allow for providing a Substantial Impact Reduction bonus when a producer switches between materials where the recycling rate of the material increases as per OAR 340- 090-0930 Core Product Category Rule (2)(c)(G), “The outputs from recycling (e.g. recycled materials) that substitute for primary production of like materials shall be granted as a credit.” In this sense, the existing LCE rules already include ecomodulation incentives to switch to higher recycling rate materials. However, depending on the material, switching from a lower recycling rate material to a higher recycling rate material may increase overall environmental impacts. Because of this, CAA fully supports the use of the single score impact approach in the LCE rules as the litmus test to be used for incentivizing changes among materials with different recycling rates, but only when doing so will result in a reduction of environmental impacts. CAA does not anticipate incentivizing shifts among materials simply on the basis of recycling rate. It is not a best practice to implement ecomodulation of producer fees in the initial couple of years of a new EPR program because doing so introduces risk to the financial solvency of the program. This is because costs and revenues are unknown at program start due to a lack of firm data. Therefore, CAA does not intend to implement any other ecomodulation factors beyond the Voluntary Disclosure and Substantial Impact Reduction bonuses required by DEQ in its LCE rules. As part of its annual report and review process under this initial program plan, CAA will assess when the timing may be right to add in additional ecomodulation factors beyond the initial two DEQ requires. CAA will add any additional ecomodulation factors in a subsequent program plan or a plan amendment to this program plan. 155 circularactionalliance.org c. Alternative membership fee structure (if applicable) CAA is not considering developing an alternative fee structure at this time. 156 circularactionalliance.org d. Adequacy of Financing Note: There are no updates to the program cost estimates for this plan submission. Upon completion of ORSOP, CAA will update its system cost estimates and detailed base fee schedule for the December program plan submission. In accordance with ORS 459A.875(2)(i), CAA is required to establish fees that adequately fund the program operations, ensuring the fulfillment of the RMA requirements and enabling program implementation. These fees shall cover the expected management costs of materials, including collection service expansion, depot network setup and CRPF compensation as well as REM and other strategic development costs. The fees will also cover reimbursement of DEQ costs related to administering the program, a waste prevention and resuse fee, administrative fees, PRO operations and program reserves. For the first year of the program, CAA developed a range of program cost estimates that informed the amount of producer fees to be generated.  Under the base case scenario, CAA expects to generate $226 million in producer fees to cover estimated program costs of $219 million.  Under the high case scenario, CAA expects to generate $292 million in producer fees to cover estimated program costs of $287 million. Note that the difference between forecasted fee revenues and program cost budgets is due to fee rate rounding – in both cases, CAA has forecasted revenues exceeding expenses, including budgeted contributions to program reserves. See Appendix E for details. Program Reserves and Contingencies CAA is committed to striking an appropriate balance between maintaining a healthy balance sheet while also running an efficient organization with high value for fees for participating producers. Guided by a corporate reserves policy (which is included in the confidential Appendix G), CAA has established a reserve target and a funding strategy based on the working capital needs, risk mitigation and other financial needs of the Oregon program. As per ORS 459A.875(2)(m), the preliminary fee budgets under the two scenarios include provisions for program reserves and contingencies. Under the base case scenario, the provision is budgeted at $46 million and under the high case scenario, the provision is budgeted at $70 million. These reserve levels reflect the amounts to be raised in the first year of fees. These will accumulate over two and half years to reach the reserves target by the end of the 2027 program year, which is being considered as steady-state. The reserve target reflects six months of projected annual variable operating costs under a steady-state program year in 2027. Program reserves are intended to cover the most variable and hard to predict elements of program implementation, namely the operations and recycling services which are affected by many unforeseeable 157 circularactionalliance.org factors. CAA considered fixed operating expenses to be more controllable but will consider adjusting the level of reserves to account for fixed costs in addition to variable costs in the December program plan submission. Variable expenses include: transportation reimbursement, contamination programming and evaluations, PCRF and CMF fees, PRO depot operating costs, local government curbside collection incentives, etc. or any costs tied to tonnages or households. Program reserves could be comprised of operating reserves and ecomodulation funds (at the material category level). Operating reserves are used for risk management, working capital, cost overruns or revenue shortfalls and contingencies. Ecomodulation funds are used to administer bonuses where maluses are inadequate to offset the bonuses. Operating reserves shall be larger than ecomodulation funds, but the details of these policies are still in development. With this approach, all producers will pay into both reserves each time they pay fees, but how much they actually pay is proportional to their supply weights. As per the CAA reserves fund policy (included in Appendix G), reserves are intended to provide the organization with the requisite level of liquidity to fund ongoing operations and other cash needs; enable CAA to continue to meet its financial obligations to the program in the event of unanticipated financial impacts and changes in organizational circumstances as a result of macroeconomic risks, operating challenges, and rate changes; enable CAA to continue to meet its financial obligations in the event of substantive revenue shortfalls such as producer exits and payment defaults; provide CAA with additional funds for the purpose of administering incentives to producers whose packaging choices lead to positive environmental outcomes; and maintain the ability to position CAA for future success and growth in line with the organization’s strategy and mission. CAA will consider making this more explicit in the December version of the program plan. The initial reserve targets referenced in the program plan budget, and rate of accumulation, will be further evaluated before the next version of the program plan submission. 158 circularactionalliance.org Equity There is no one-size-fits-all solution to recycling because motivators and barriers vary across age, region, race, ethnicity and other factors.19 In particular, CAA recognizes that the following factors may influence equity and outcomes in the Oregon recycling system:  Lack of access to infrastructure and/or practical knowledge about how to recycle properly  Lack of transportation  Functional barrier of preparing items to recycle (cleaning, emptying, breaking down items)  Ability and disability (for example, color blindness might affect a resident’s ability to understand educational materials)  Knowledge barriers (for example, residents might not feel confident in their ability to recycle properly)  Recycling programs not being set up for full community participation  Investment in relevant resources and tools as well as information shared differently across the resident population  Language barriers  How community members see themselves represented in the education and outreach materials (visuals, language, staff handing out resources)  Geography/location and practical considerations tied to location  Process for actively identifying and evaluating equity gaps within the recycling system  Following the identification of equity gaps, working to resolve those gaps, and continuing to measure progress towards equity CAA’s Proposed Approach to Equity CAA’s approach to equity is to strive toward meeting our program goals while being as fair and inclusive as possible in providing access to recycling services and recycling information in Oregon. CAA will align with the definition of equity adopted in the State of Oregon for administering the program in Oregon. To help meet this objective, CAA has sought the expertise of the community-based organization (CBO) Trash for Peace in developing the equity components of this plan. If selected, CAA will continue to work with Trash for Peace and other CBOs in operationalizing its plan in Oregon. 19 https://recyclingpartnership.org/equitable-recycling-outreach 159 circularactionalliance.org To assess and review equity issues during program plan implementation CAA will consult regularly with the ORSAC and the DEQ to ensure that CAA’s activities in Oregon align with the equity requirements of the RMA and CAA’s goals for equity. CAA also proposes some specific equity approaches corresponding to key aspects of its operations plan: Equity in the Establishment of a PRO Depot Network CAA proposes to explore a number of approaches to ensure its depot network is tailored to the varying needs of different Oregonians. First, the depot network will adhere to statutory and regulatory requirements around convenience standards. Meanwhile, CAA will identify opportunities to provide collection for people with mobility challenges, including considering funding for at-home collection, store drop-off, and neighborhood collection events. Because transportation is an equity issue, CAA proposes to prioritize events and mobile collections that bring recycling closer to communities that must travel farther distances to existing recycling depots. Furthermore, CAA will work to identify any depot sites on Tribal lands, and once identified, CAA will prioritize contracting with these sites. Through a continually growing understanding of the Oregon landscape, CAA has initially identified the following existing depots on Tribal land and we intend to explore incorporating these two depots in the system as well as have conversations with the other seven Tribes about opportunities to create collection points in their communities: • Tribal Environmental Recovery Facility, Pendleton, OR – operated by the Confederated Tribes of the Umatilla Indian Reservation which represents a union of the Cayuse, Umatilla and Walla Walla Tribes. • Grand Ronde Depot, Yamhill County – operating on the land of the Confederated Tribes of the Grand Ronde Community of Oregon, which represents over 30 Tribes and Bands from western Oregon, northern California, and southwest Washington. CAA will also explore how compensation plans for collection point staff can be made fair and equitable. After consulting with permitted and existing facilities, as required by statute, CAA plans to prioritize conversations with CBOs to fill in any program gaps. If costs to contract with CBOs are prohibitive, defined as exceeding 110% of the average costs for depots, then CAA will continue to explore other avenues. CAA plans to provide a per ton material rate to incentivize greater collection and thus move Oregon closer to its recycling rate goals. A living wage for CBO-managed sites will be built into the base service fee CAA will pay monthly, based on the projected number of employee hours needed to handle PRO materials. And CAA will explore partnerships with community groups that collect PRO depot materials but may not qualify for permits or meet the definition of “depot” or “drop off center.” Identification of these opportunities is still ongoing and will continue to be top of mind throughout the ORSOP and program implementation process. 160 circularactionalliance.org Equity in Responsible End Markets CAA will work to ensure that new markets for materials collected in Oregon are developed in ways that minimize risks to public health and worker health and safety. For materials CAA owns, and wherever possible, CAA will also explore options to:  Provide opportunities to businesses that are small businesses, veteran owned businesses, owned by a disadvantaged class, are not-for-profit businesses, or are B Corp certified  Provide opportunities to businesses with affirmative labor practices, such as hiring preferences for underserved groups, providing living wages, or utilizing organized labor 161 circularactionalliance.org Equity in Education and Outreach As described in the Education and Outreach section above, CAA plans to ensure that educational materials and campaigns are culturally responsive to diverse audiences across Oregon by:  Translating and transcreating all education and outreach materials into Spanish, Simplified Chinese, Traditional Chinese, Korean, Arabic, Russian, Vietnamese, Tagalog, Hindi, Somali and Ukrainian  Applying a co-creation approach to give community members a chance to participate in campaign design through community-level listening, Partnering with CBOs as advisors to education and outreach development, as well as implementation partners  Designing for accessibility, ensuring all collateral follows ADA compliance and best practices as well as the principles of universal design, where products, services or environments are designed so that anyone – no matter their age or ability – can use that design with minimal or no accommodations  Accounting for disparities in access to information technology, ensuring rural audiences are engaged as well as urban populations Equity in PRO Administration When contracting work to third parties, CAA will develop an approach that provides opportunities to businesses that have certification under the Oregon Certification Office for Business Inclusion and Diversity (COBID) as minority-owned businesses, women-owned businesses, service-disabled veteran-owned businesses, or emerging small businesses. We are engaging with every hauler in the State and continuing to offer equal opportunities for system expansion and depot collection, which we believe creates a level playing field for small and minority-owned haulers, ensuring that investments are made comparatively to ensure that market share for these identified haulers is not being negatively impacted throughout the RMA. CAA will utilize the COBID website to obtain information on these potential business partners. The RMA was designed to place 30% of the financial responsibility of the recycling system on the PRO. Additionally, the RMA has created opportunities to bring new functions into the State to support the system, such as developing the statewide contamination evaluation system. As CAA develops new job opportunities in the state, the organization will abide by equitable employment practices that create opportunities for all Oregonians. Hiring within Oregon has already begun with the onboarding of an Oregon-based Oregon Executive Director and other staff. Preference for Oregon-based staff will remain top of mind throughout the hiring process. 162 circularactionalliance.org CAA Management and Compliance In this section, CAA describes its plans for day-to-day management of the program, communications, data gathering, and reporting processes; managing producer compliance; and related policies and procedures. This section directly addresses CAA’s Objective 4 for this program plan: “Create a system that fulfills the needs and regulatory requirements of the PRO, its members, and all other relevant stakeholders.” CAA is committed to upholding the highest standards of ethics, integrity, and compliance with all relevant local, state, and federal laws and regulations. CAA recognizes the importance of adhering to legal requirements to ensure the trust and confidence of our stakeholders, including the Oregon Department of Environmental Quality (DEQ), producers, partners, employees, service providers, local municipalities, and the state of Oregon as a whole. a. Overall Day-to-Day Management CAA will provide management of the program’s overall day-to-day program operations, steward services, finance and administration, and local government and community activities, utilizing key qualified personnel dedicated to the Oregon program. Collaboration with CAA National and additional CAA state program personnel will occur to ensure all programs are functioning in the most consistent and efficient manner. The CAA management team will conduct activities in accordance with defined policies and procedures. CAA will staff the program with dedicated resources responsible for the success of the overall program. The CAA National office will also provide support where applicable. The following resources will be the main points of contact and responsible for program compliance: Primary Contact Secondary Contact Name: Kim Holmes Name: Shane Buckingham Position: Oregon Executive Director Position: EPR Program Planning Lead Phone: (833) 424-7285 Phone: (833) 424-7285 Email: info@circularaction.org Email: info@circularaction.org A full list of CAA Oregon team members and their roles will be maintained on the staff page on the website. CAA will notify DEQ within 30 days of key personnel changes related to the Oregon program. 163 circularactionalliance.org b. Communications In this subsection, CAA describes its planned approach to communication and coordination with key stakeholders as part of the implementation of this plan. It also outlines a proposed approach to gathering data and key metrics to inform the measurement of key outcomes, and how key metrics will address elements of the annual reporting structure required by the RMA. CAA Plans for Communication and Coordination CAA understands that effective collaboration and communication with Oregon recycling stakeholders is critical to CAA successfully meeting RMA obligations and delivering on anticipated recycling system improvements. CAA proposes several multi-stakeholder coordination and communication activities and welcomes feedback from Oregon DEQ regarding these proposals. Note that the frequency of each activity will, by necessity, fluctuate to reflect the program’s evolving needs. A set cadence for each effort will be determined that is agreeable to the relevant stakeholders and reflects the program’s ongoing needs. CAA will engage with other stakeholders not specifically highlighted here as necessary. General Communications CAA’s website already features a professionally designed and maintained section dedicated to Oregon and the Recycling Modernization Act. This online resource is currently geared toward potential producers, but it will be expanded to target additional audiences, including sections tailored to Oregonians (waste generators), service providers, local governments, and others. CAA expects it will employ other effective communication tools as demand for information is established in both format and frequency. Oregon DEQ CAA will establish meetings between relevant CAA representatives and Oregon DEQ. CAA and Oregon DEQ would select the appropriate project team members to be included on the recurring event, and each party would be expected to invite others when relevant for specific discussion items identified in advance. This step builds on the strong communication ties that have already been developed between CAA and DEQ. CAA will also communicate updates and data to DEQ through required reports and according to recommendations developed in consultation between CAA/DEQ and ORSAC. 164 circularactionalliance.org Oregon Recycling System Advisory Council (ORSAC) CAA will appoint a single point of contact for ORSAC, and CAA will have standing attendance at ORSAC meetings and offer the opportunity for consultation as needed. CAA expects to engage in a regular series of meetings with ORSAC and DEQ to review implementation issues that could arise after submission of this program plan. Local Governments and Service Providers CAA has undertaken a significant amount of communication and coordination activity with local governments and their service providers as part of the proposed Oregon Recycling System Optimization Project. As detailed in the “Collection and Recycling of USCL Materials” section of this plan, CAA intends to utilize an online portal to process local government and service provider funding requests under different local government reimbursement programs. These programs will be supported by dedicated CAA operations staff that will facilitate stakeholder participation. CAA will also provide an online portal for local governments and their designated service providers to easily access, customize, print and mail education and outreach collateral at no cost, as described in the “Education and Outreach” section of this plan. CAA will also host dedicated webinars to support program implementation, and local governments and service providers will be a key audience for these communication efforts. In addition, CAA will plan to connect with and inform local government stakeholders through connections with groups such as the Association of Oregon Counties and the League of Oregon Cities. Commingled Recycling Processing Facilities (CRPFs) CAA will form a CRPF working group to establish a forum for interaction with processors and also to provide technical assistance, review relevant program timelines and requirements, discuss investment opportunities, and more. CAA will continue to cultivate relationships with processors on an individual level as well in an effort to understand needs and shifting realities at the materials processing level. CAA will establish standing meetings with the Oregon Refuse & Recycling Association (ORRA), a statewide trade group that serves as a key conduit to processing entities. Producers CAA acknowledges that it is critical for producers to fully comprehend their compliance requirement in order to facilitate successful implementation. Regardless of whether a producer is just starting to learn about their EPR obligations in Oregon or whether they have been following the RMA from its inception, CAA is 165 circularactionalliance.org committed to being transparent about the implementation process and to supporting producers in their EPR journey. To support producers with their compliance goals, CAA has created educational, informational, and guidance resources, which are summarized below. 166 circularactionalliance.org Producer Resource Center CAA created the Producer Resource Center (available on CAA’s website) to help producers better understand and prepare for their obligations in states that have enacted EPR laws for paper and packaging. The Producer Resource Center features answers to commonly asked questions, action items for producers, and links to webinars and other opportunities for producers to engage with CAA. CAA’s website also features an evolving FAQ. Producer Onboarding Sessions CAA has been hosting Producer Onboarding Sessions since May 2024. In these regularly scheduled webinars, the basics of EPR, CAA, producer requirements, and producer registration with CAA are covered. The webinars are geared towards companies just starting their EPR journey and substantial time is reserved to address producer questions. Participation is open to all producers, trade associations representing producers, and legal counsel to producers. Producer Working Group CAA has been hosting Producer Working Group (PWG) meetings since November 2023, and more than 2,700 individuals representing hundreds of companies have attended. PWG meetings are a monthly opportunity for producers, their legal representatives, and trade associations to learn about and discuss priority producer issues. PWG meetings are a step deeper than the Onboarding Sessions, where CAA shares information and answers questions on the details of a wide variety of EPR topics, with a focus on producer compliance. Previous PWG meeting topics have included:  A preview demonstration of the producer reporting portal currently in development.  A high-level review of CAA’s fee modeling approach, including the guiding principles adopted by CAA in the fee-setting process.  A discussion of the Participant Producer Agreement (PPA), a legal agreement between CAA and the producer that outlines terms and conditions, confidentiality, and verification and auditing requirements for producers.  A review of preliminary reporting categories and preliminary fee schedules.  An explanation of recyclability determinations, i.e. USCL, PRO Acceptance Lists, Specifically Identified Materials. CAA also maintains a library of past PWG meeting summaries and slide decks for registered producers to reference at their convenience. Stakeholder Update Webinars CAA has hosted four informational webinars in the past year, which were designed for a broader, multi- stakeholder audience, e.g., value chain members, converters, trade associations, and others. These webinars generally highlight status updates on CAA’s latest activities in EPR states, including timelines and producer registration. Participation in DEQ hosted webinar series 167 circularactionalliance.org DEQ has contracted with the Product Stewardship Institute (PSI) to host a series of webinars to help producers understand compliance obligations. CAA coordinated with DEQ to prepare for content for these webinars and participated in each event, offering information about how producers can register with CAA. Other Communications CAA’s monthly email newsletter has an open rate that is 300% higher than the industry average open rate, and CAA’s LinkedIn engagement rate is 240% higher than the average LinkedIn engagement rate. These statistics demonstrate that CAA is providing information – particularly guidance – that producers want and need. 168 circularactionalliance.org Producer Consultation CAA also values a consultative relationship with all producers and has held hundreds of one-on-one meetings with producers since December 2022. Through one-on-one meetings and customized group meetings with coalitions and trade associations, CAA has discussed producers’ statutory obligations, the development of CAA, and reporting and fee payment requirements for producers. Recently, CAA’s engagement with producers has centered on the contents and process for producers to sign the Participant Producer Agreement, or the legal agreement that each producer will be required to sign with CAA as a requirement of participation in the program. Producer Reporting Guidance CAA is currently developing reporting guidance for producers and plans to release it in the fourth quarter of 2024. The goal of the reporting guidance is to provide a single resource for companies that meet the definition of obligated producer in Colorado, California, and/or Oregon. Among other things, the reporting guidance will outline details to support producers’ EPR reporting and compliance. The reporting guidance will be accompanied by access to a producer portal, through which producers can initially find a Producer Registration form and necessary legal agreements. In future releases, the portal will include a reporting questionnaire to help producers determine if they are covered and, if so, in which states and step-by-step process to input or upload data. The portal will also ask for additional information such as a producer’s legal structure to determine its affiliation status and the methodology used for calculating its data. CAA has been hosting a monthly Producer Working Group (PWG) since 2023 and will continue to do so. The PWG offers a forum for information-sharing and discussion among companies with producer obligations, providing practical guidance on producer-specific topics such as deadlines, requirements, reporting, and more. PWG members also have access to the Producer Working Group Library, which includes past PWG meeting summaries and materials. In addition, CAA’s website features a Producer Resource Center, which is regularly updated. For producers, the CAA portal will enable secure registration and password protected login, transaction and balance history, and reports and notices. It will also allow producers to submit their production volumes to CAA for annual fee calculations via data exchange, structures file upload, or direct entry. Trade Associations The Association of Oregon Recyclers (AOR) is an important stakeholder relationship, as AOR membership spans the entire materials management industry in Oregon. CAA will participate in the organization’s annual conference (including presenting at the discretion of AOR’s conference planning committee) and collaborate on educational forums and/or webinars for AOR members. CAA is open to other forms of engagement that mutually benefit CAA and AOR. 169 circularactionalliance.org As mentioned earlier, ORRA is another important stakeholder relationship, with ORRA members accounting for a large portion of the solid waste management sector in Oregon. Ongoing communication and relationship-building within ORRA has been, and will continue to be, a key focus for CAA. 170 circularactionalliance.org Other PROs and Multi-PRO Coordination Currently, CAA is the only PRO that has submitted an RMA PRO program plan. If additional PROs indicate an interest in submitting program plans, CAA will work with DEQ and those prospective PROs to develop an interim coordination process as required by the RMA framework. With respect to program plan development tasks, CAA is tracking all program development costs that should be shared with future PROs if they join the Oregon RMA program prior to CAA’s recovery of those start-up costs from membership fees. CAA will include a breakdown of 2024 start-up costs in the proposed 2024 Annual Report anticipated by DEQ in its Phase II RMA rule concepts. CAA’s 2025 Annual Report will also identify program development start-up costs incurred in 2025 prior to the start of the program that will need to be recovered from producer fees once the program starts on July 1, 2025. CAA will then track the recovery of these start-up costs over time so that in the event a new prospective PRO emerges, DEQ and CAA can identify remaining program start-up costs applicable to that new PRO at the time of its proposed entry into the RMA program. 171 circularactionalliance.org c. Reporting Metrics and Data Collection Many aspects of this plan will require tracking of key outcomes and metrics to measure the achievement of program goals articulated in the “Program Goals” section. CAA will use its interactions with key stakeholders to collect data relevant to the goals, objectives, expected outcomes, and key metrics discussed in that section. CAA will establish survey, reporting, and other data collection mechanisms for routine program measurement. CAA will develop standardized reporting templates to ensure consistency of records and provide clear guidelines to all stakeholders required to report data to CAA. CAA will also ideally receive critical information from DEQ on key elements, in particular related to inbound contamination, capture rate and outbound bale quality at CRPFs. CAA may in some instances pursue studies or other data-gathering exercises to collect essential information. It will use this data and corresponding analytics to report annually to DEQ on plan implementation and goal achievement. CAA will also use this performance information to update its goals, to adjust its plan, and to suggest or recommend overall adjustments to RMA implementation. CAA’s intention is to use the submittal of its five-year plan updates as the main mechanism for altering program goals. Producer Reporting CAA will provide participant producers with access to a secure online reporting portal to facilitate the submission of annual supply data. This reporting portal will allow for CAA to capture and aggregate the information that must be submitted to Oregon in the PRO Annual Report, as well as the applicable individual producer data where required. CAA will monitor the effectiveness of this reporting portal and make adjustments as necessary to improve efficiency and accuracy. CAA will also provide necessary training and support to all producers and relevant stakeholders on the reporting portal's use. Annual Reporting CAA will submit Annual Reports to Oregon DEQ no later than July 1 of each program year, starting in 2026. CAA’s Annual Report will contain all information required by 459A.887(2)(a), OAR 340-090-0660(1)(a), OAR 340-090-0670(4), and OAR 340-090-0700(1)(d). It will be written and presented in a manner that can be understood by the general public. The Annual Report will be delivered each year to Oregon DEQ as a searchable electronic file. CAA will follow the outline for annual reporting proposed in DEQ’s management directive including the following elements. 172 circularactionalliance.org PRO Description: Total amount, by weight and type of material, of covered materials sold or distributed in or into this state by participating producers in the prior calendar year Goals of the Program: Description of progress toward meeting topline goals in relation to identified program plan outcomes and metrics along with any recommendations to improve recovery and recycling outcomes. Program Operations: Summary of program operations including:  Progress toward implementing local government recycling system service expansions and improvements o Progress toward meeting PRO Recycling Acceptance List material collection targets and convenience and performance standards o Measures taken to address the recycling of specifically identified materials o Summary of performance in relation to fulfilling responsible end market (REM) obligations including:  A summary of quarterly disposition reports and evaluation of adequacy of REMs  A summary of actions taken in support of REMs  A summary of certification and verification results o A description of actions taken in relation to upholding progress in relation to achieving the statewide plastic recycling goal o A summary of education and outreach activities, with metrics on the utilization of online resources by local governments and haulers o Results of any in-person site inspections, material tracking or other audits conducted during the reporting year, including whether any major safety or environmental management practices were not properly followed and, if so, the corrective actions taken Financing and Budget: Annual reports would include:  A summary of the financial status of CAA, including annual expenditures, revenues and assets  A description of the membership fee schedule, along with information on the number of producers that received fee adjustments and total fee revenues and an evaluation of the effectiveness of membership fee adjustments in reducing the environmental and human health impacts of covered materials  A complete accounting and summary of payments requested by local governments and local governments’ service providers and paid by CAA related to: o Service expansion requests o Transportation funding o Contamination reduction funding o Roll cart funding o Contamination reduction evaluation funding  A summary of payments requested by local governments or local governments’ service providers that were denied or reduced by CAA  A summary of payments made to CRPFs 173 circularactionalliance.org  A summary of all other payments made to satisfy CAA’s obligations under ORS 459A.860 (Legislative Findings) to 459A.975 (Rules), including but not limited to payments made to support responsible recycling of specifically identified materials (SIMs), as described in ORS 459A.917 Finally, annual reports will include any additional information required by RMA rules and statute. Reports will detail updates around organizational compliance and include findings from an independent accountant’s audit of CAA’s financial statements. 174 circularactionalliance.org d. Managing Compliance To encourage the compliance of all stakeholders with the RMA, CAA will offer robust support and training to educate producers about program plan requirements. Any material changes to program plan requirements impacting stakeholders will be communicated to producers. Records pertaining to CAA’s implementation and administration of its producer responsibility program will be retained in accordance with applicable law and with CAA’s records retention policy. CAA is committed to maintaining open lines of communication with state and local rule makers and will actively seek clarification on any regulations deemed unclear. Internal controls will be designed to promote adherence to regulatory standards. Producer Compliance Per ORS 459A.869(8), CAA will establish a searchable registry on its website disclosing all CAA’s compliant members and the identities of any members determined to be non-compliant members through DEQ enforcement processes alongside the reasons for their non-compliance. In instances where a member or non-member organization is potentially non-compliant with the program plan and/or the RMA, CAA will notify DEQ and the allegedly delinquent producer of the deficiency and provide the producer an opportunity to respond and to cure the delinquency as applicable. CAA will endeavor to monitor compliance by producer members by conducting periodic operational and record audits, utilizing an audit cycle that will include desktop audits. When a desktop audit is performed, documentation via photos, promotional efforts, and compliance documentation will be requested. In the event of a non-compliant finding, CAA will send a notification to DEQ after certain internal compliance processes and timelines have passed. Designated CAA personnel will be assigned to providers to cultivate relationships with providers and foster on-going communication, trust, and transparency to identify and address issues as soon as possible. Preventive Measures CAA is undertaking several producer education activities prior to the start of the program plan designed to educate producers of their obligations under the RMA in Oregon. This includes direct outreach to producers, informational webinars, and engagement with relevant trade associations to disseminate broad awareness of the new program requirements. CAA will also develop additional outreach materials to facilitate producer packaging reports required by the program as the RMA moves closer to implementation. These preventative measures are intended to support the processes outlined below for notifying DEQ, ORSAC, and producers of potential non-compliance. Membership Rules CAA will develop a Membership Rules Schedule related to fee payments and reporting requirements. Membership rules will specify producer reporting and fee payment obligations, and may address such issues 175 circularactionalliance.org such as membership reporting obligations, voluntary reporter agreements, reporting timelines and categories, errors in reports, membership-initiated adjustment requests, billing process, timing of fee payments, penalties and interest associated with late payments, verification audits process, and compliance process along with a timeline by which a non-compliant member would be referred to the DEQ for potential disciplinary action and/or dispute settlement. Compliance Process Below are components of a compliance process that could be incorporated into the Membership Rules:  Duty to Pay Required Fees - CAA may impose financial penalties and interest on members for failure to pay invoices in accordance with membership rules  Retention of Records - CAA members will be required to retain records to substantiate and verify the accuracy of the information submitted in their reports for a to-be-determined period of time following the submission, and such records will be subject to inspection by CAA  Duty to Comply with Requests for Documentation - Upon written request from CAA, members shall provide documentation in support of their reports to CAA. This may include specific data, calculation methodologies, and/or audit reports, among other items.  Duty to Provide Access - Members will be required to grant access during business hours to CAA or its authorized representatives to inspect and review records relevant to information submitted in their reports as maintained in accordance with the Retention of Records policy  Duty to Cooperate with a Verification Audit - At the request of CAA, members must cooperate with CAA’s verification process, described in the “Responsible End Markets” section of this plan. This may include providing requested documentation, data, records, and reports within a reasonable timeline of such requests, providing confirmation from a senior officer with authority to confirm and oversee reporting, and providing access to the member's business premises. Notification of Non-Compliance For non-compliance related to a producer who is or was a member of CAA in accordance with RMA requirements, but which failed to comply with membership reporting and/or fee payment requirements, CAA Membership Rules would include notification to DEQ after certain internal compliance processes and timelines had passed. CAA would notify DEQ of any members that are not in good standing (this may include a membership suspension and process), subject to a time frame outlined in the Membership Rules. For example, members who had failed to report and/or pay fees within the specified time frame could be:  Suspended by CAA and considered members not in good standing, following requisite due process of the reasons for the suspension and the steps necessary to remove the suspension or become in good standing  Reported to DEQ to take such corrective action as DEQ deems necessary or appropriate 176 circularactionalliance.org CAA would also propose that in a multiple PRO situation, a searchable online database be maintained where PROs could confirm whether producers were members of an approved PRO and in compliance with RMA requirements. Obligated Producers under the RMA CAA membership reporting review and assessments may identify situations where there is a dispute between producers about which entity is an obligated producer with respect to a particular material application. In such circumstances, CAA may consult with DEQ regarding the interpretation of RMA “obligated producer” provisions to ensure that the application of the RMA to producers is consistent with DEQ’s intentions. CAA may also become aware of producers that are not CAA members but that appear to be obligated producers under the RMA. CAA will conduct outreach to encourage such producers to register with a PRO to fulfill their obligations under the RMA. In such situations, however, CAA may not necessarily have access to information that would confirm whether a non-member producer is actually obligated under the RMA. If such producers fail to take action, CAA would refer these producers to DEQ, along with the information that led it to believe the producer was obligated under the RMA, for DEQ to take such action as it may deem necessary Non-Compliance with LCA Requirements Failure of a CAA member to conduct and report on required LCA requirements in the case of the 25 largest producers in the state is also a potential RMA compliance issue. Given the unique nature of LCA process and related rules, CAA would propose to develop specific compliance reporting processes and protocols related to this issue that would likely be different than processes and protocols in place to address violations of CAA producer reporting and fee payment requirements. CAA would propose to develop a specific membership compliance process and policy related to producer LCA requirements and would consult with DEQ regarding timelines and steps that would be taken to regain compliance. 177 circularactionalliance.org e. Dispute Resolution (Local Governments and CRPFs) A number of areas under the RMA will require dispute settlement processes to address potential disagreements between CAA and local governments and other stakeholders that are receiving funding from CAA under various RMA programs. In many cases, standard commercial dispute settlement mechanisms, such as an agreement by the parties to refer a dispute to a third-party arbitrator, can be utilized to resolve such disputes. As noted in other program plan sections, CAA is proposing to finalize the details of various funding programs through further consultation with relevant stakeholders. This would include a review of proposed dispute settlement procedures for each program funding area. Based on the results of stakeholder consultation and input, CAA will provide a more detailed description of the dispute settlement procedures for individual funding programs as part of its anticipated program plan revisions to be submitted in December 2024. As also noted earlier, program funding in relation to local government service expansion requests may involve more difficult dispute resolution issues than those normally associated with typical commercial contracts as there may be different interpretations about what qualifies as costs associated with the expansion and provision of recycling collection service for covered materials. CAA is proposing that one of the objectives of the Oregon Recycling System Optimization Project (ORSOP) will be to identify possible areas of disagreement between local governments and CAA regarding eligible funding requests. Once more clarity on individual local government funding requests is received, CAA is proposing to create a working group consisting of representatives from CAA, local governments, and DEQ to attempt to mediate disagreements over service funding requests between the approval of the third program plan and the start of the program plan on July 1, 2025. This process would be intended to minimize potential disagreements between CAA and local governments prior to the processing of individual local government service expansion requests once the program begins as of July 1, 2025. Given that some funding request eligibility issues may require a resolution of the interpretation of the RMA and its implementing rules, parties would retain the right to address issues through legal mechanisms in the event that CAA and local governments and the DEQ cannot align on the same understanding of what the RMA requires. 178 circularactionalliance.org f. General Policies, Procedures, and Practices CAA will regularly monitor the state of operations for the entirety of the program. CAA recognizes that defined and consistently executed policies, procedures, and practices are critical for ensuring the well-being of its personnel and the integrity of data provided to various stakeholders. CAA has developed national and state specific (where applicable) policies, procedures, and practices to enable consistent handling of activities while providing services required to operate key aspects of the program. The policies, procedures, and practices are defined to address specific tasks and to ensure the below concepts are addressed where applicable. Consistent with best practices, CAA anticipates that it will periodically review and update its policies, procedures, and practices as determined to be necessary or appropriate. i. Management of Contracts CAA will maintain appropriate records of contracts that have been entered into in writing pertaining to the Oregon Recycling Modernization Act. Prior to execution, written contractual agreements between CAA and relevant parties will undergo appropriate internal review in accordance with CAA’s business practices and policies. ii. Workplace Safety and Conduct CAA is committed to maintaining a safe work environment. In order to provide a safe and healthy work environment, personnel will be required to take appropriate and reasonable precautions by complying with established safety and workplace conduct standards. CAA is committed to providing proper equipment, procedures, and training in safe practices to aid in awareness and prevention of potential individual and community safety issues. Employees will be encouraged to familiarize themselves with their safety and conduct responsibilities, to follow safety and conduct practices at all times, and to make every effort to prevent accidents and injuries. Failure to adhere to safety and conduct rules could result in disciplinary action, up to and including termination of employment. CAA will promptly and thoroughly investigate all reports of suspected nonconformance by personnel with safety or conduct requirements. CAA will comply with all applicable laws pertaining to workplace safety and conduct. iii. Protection of Confidential Information CAA will adopt an information security plan that outlines appropriate technical, physical, and organizational measures designed to protect against unauthorized or accidental access, destruction, loss, alteration, or disclosure of nonpublic information subject to confidentiality undertakings. 179 circularactionalliance.org The information security program will address native encryption of all data, event monitoring, audit trails, and other relevant topics. When information is no longer needed or required to be maintained by organizational policy or applicable law, CAA will securely dispose of all data and records in accordance with its records retention policy and information security program requirements. All personnel will be required to periodically undergo appropriate training on their responsibilities for protecting confidential information. iv. Successful and Timely Delivery CAA will establish contractual agreements with service providers that outline the requirements and expectations designed to foster the successful and punctual achievement of project objectives by contractors. Communication will be maintained with all contractors, with verbal and written notifications issued if timelines are not met or project outcomes are delayed. Additionally, contractors will be asked to submit status reports as deemed necessary by CAA. CAA will request the contractual capability to inspect contractors and conduct quality checks to ensure that projects meet the standards of the program. Furthermore, CAA will offer comprehensive training and support to all contractors to ensure they understand and meet CAA’s expectations. v. Retention of Information Per ORS 459A.962, CAA will retain records related to the implementation and administration of its producer responsibility program plan for at least five years and have them available for inspection by DEQ upon request. All documents are stored and managed by CAA’s national organization within the Microsoft Azure cloud and in our DocuSign Contract Management system. This architecture ensures secure access, maximizes uptime, and maintains backups for all CAA mission-critical information. CAA does not intend to store documents physically in the State of Oregon, as there is no legal requirement to do so. A copy of CAA’s records retention policy is available upon request. CAA will designate a records custodian who will be responsible for the administration of the records retention policies. These documents will facilitate the creation of the annual report elements specified in ORS 459A.878 and addressed in the “Reporting” section of this plan. The annual report will be submitted to DEQ on July 1 of each year. 180 circularactionalliance.org g. Closure Plan CAA financing proposals include the development of program reserve targets equivalent to at least six months of variable operating expenses. Recent experience with the wind up of a number of stewardship programs in the province of Ontario suggests that the six-month reserve policy will provide any ample buffer for fully resolving all CAA obligations related to a potential closure of its program. While there are different ways to measure wrap-up or closure costs, the range of these costs in Ontario for different programs has been between 15 and 30 percent for different stewardship programs.20 Six months of reserves will ensure that CAA has the necessary resources for a transition period in the event CAA ceases operations as a PRO in Oregon. Potential closure scenarios related to CAA operations in Oregon may include but are not limited to: 1. A decision by the CAA Board of Directors to cease operations in Oregon 2. Failure to maintain membership representing 10% market share or other qualifying criteria of a PRO as is required by the RMA 3. Changes in relevant laws, regulations, or other RMA program requirements With respect to Scenario 3 above, CAA assumes that a change to the statutory and/or regulatory framework requiring CAA to cease operations in Oregon would likely be accompanied by conditions that provide notification and timing of required program termination dates. As such, this closure plan will focus on the other two possible closure scenarios. In the case of an internal CAA decision to cease operations in Oregon (Scenario 1 above), CAA will endeavor to give its producers, service providers, DEQ, the ORSAC, local governments and other RMA stakeholders a minimum of six months’ notice that it intends to cease operations as a PRO in Oregon. CAA would also endeavor to align such a decision, if suitable under the circumstances, with the renewal dates associated with RMA Producer Plans. In the case of Scenario 2 above, where CAA closure is due to a failure to maintain membership representing the required 10% market share or other qualifying criteria, CAA would implement a closure plan that aligns with timelines related to closure of operations associated with OAR 340-090-0730. A notice of closure would include the intention for the termination of CAA’s Oregon program, the anticipated CAA program termination date, and an outline of the steps CAA would take to wind up its operations in Oregon in an orderly fashion. The CAA closure plan will include the following information: 20 Ontario transitioned to a new legislative structure for EPR programs which resulted in the wind up of existing stewardship programs for tires, waste electronics, hazardous waste and packaging (the Ontario Tire Stewardship program was the first to wind up on December 31, 2018). While the transition of the Stewardship Ontario program for blue box packaging is not yet complete, actual and estimated wind-up transition costs for these programs has ranged between 15 and 30 percent of annual operating costs (less reserve contributions). More information on the wind up of these programs and related costs is available on the Resource Productivity and Recovery Authority website at https://rpra.ca/. 181 circularactionalliance.org  Key steps and activities CAA will undertake before and after the termination date to ensure: o That RMA obligations have been maintained during the wind up of activities  That service providers, local governments, and other stakeholders are given adequate notice of the wrap up of individual CAA programs and contractual arrangements  Implementation timelines, key steps and cut off dates for various program operations (final day to submit transportation compensation claims, for example)  Communications plan and stakeholder notifications  A closure financial plan and budget, including the process to ensure resolution of any liabilities and resolution of tax and other financial issues  A plan to disburse any remaining assets and reserves once all financial and operational obligations have been addressed Please note that in order to cease operations, CAA will have to conduct a number of activities after the termination date for the CAA RMA program. This would include final payments required under the RMA for activities that took place prior to the termination date. Once CAA completes the steps required under the closure plan, it will provide notice to DEQ of the completion of the closure plan. 182 circularactionalliance.org Certification and Attestation a. Contents i. Contact Information Authorized Jeffrey Fielkow Representative: Title: CEO 20 F Street NW, Suite 700, Address: Washington, D.C. 20001 Phone Number: 833-424-7285 Email Address: info@circularaction.org ii. The Prospective PRO’s Employer Identification Number The Employer Identification Number for Circular Action Alliance is 92-3197259. iii. Proof of the Prospective PRO’s Status as a Nonprofit Documents showing proof of Circular Action Alliance’s status as a nonprofit, 501(c)3 organization able to operate in Oregon are located in the Appendices as follows:  Circular Action Alliance’s bylaws of incorporation as a nonprofit corporation: Appendix H  Circular Action Alliance’s 501(c)3 determination letter from the Internal Revenue Service: Appendix I  Circular Action Alliance’s proof of status in Oregon (proof of registration as a charitable organization with the Oregon Department of Justice): Appendix J  Circular Action Alliance’s proof of registration as a foreign corporation with Oregon’s Secretary of State: Appendix K  Circular Action Alliance’s revised bylaws: Appendix L 183 iv. Certifying Statement I hereby declare under penalty of false swearing (Oregon Revised Statute 162.075i and ORS 162.085ii) that the above information and all of the statements, documents and attachments submitted with this plan are true and correct. Jeffrey Fielkow – Chief Executive Officer, Circular Action Alliance Date: September 27, 2024 Signed 187 circularactionalliance.org Appendices The following appendices are available in separate documents:  Appendix A: Definitions  Appendix B: List of Member Producers and Market Share Calculation  Appendix C: CAA Organizational Structure  Appendix D: Stakeholder Engagement  Appendix E: Itemized Budgets by Program Year  Appendix F: PRO Depot Lists and Coverage  Appendix G: Detailed Fee-Setting Methodology (confidential)  Appendix H: CAA Articles of Incorporation  Appendix I: 501(c)3 Letter of Determination  Appendix J: Proof of Registration as a Charitable Organization  Appendix K: Proof of Registration – Foreign Corporation  Appendix L: CAA Revised Bylaws  Appendix M: Updated Program Implementation Timelines  Appendix N: Response to Oregon Recycling System Advisory Council Feedback  Appendix O: Legal Notices 185 circularactionalliance.org Table of Contents Appendix A: Definitions ............................................................................................................... 2 Appendix B: List of Member Producers and Market Share Calculation .......................................... 9 List of Member Producers ........................................................................................................................................ 9 CAA Oregon Market Share Calculation Methodology ............................................................................................ 26 Appendix C: CAA Organizational Structure ................................................................................. 29 Appendix D: Stakeholder Engagement ....................................................................................... 33 Appendix E: Itemized Budgets by Program Year ......................................................................... 35 Appendix F: PRO Depot Lists and Coverage ................................................................................ 40 Appendix G: Detailed Fee-Setting Methodology (confidential) ................................................... 49 Appendix H: CAA Articles of Incorporation ................................................................................. 50 Appendix I: 501(c)3 Letter of Determination .............................................................................. 61 Appendix J: Proof of Registration as a Charitable Organization .................................................. 64 Appendix K: Proof of Registration – Foreign Corporation ........................................................... 66 Appendix L: CAA Revised Bylaws ............................................................................................... 68 Appendix M: Updated Program Implementation Timelines ........................................................ 77 Appendix N: Response to Oregon Recycling System Advisory Council Feedback ........................ 114 Appendix O: Legal Notices ....................................................................................................... 125 1 Appendix A: Definitions Below are the definitions used in ORS 459A.863, along with additional terms that have been used in this program plan. (1) “Brand” means any mark, word, name, symbol, design, device or graphical element, or a combination thereof, including a registered or unregistered trademark, that identifies a product and distinguishes the product from other products. (2) “Certification Body” as adapted from ISO 17000, means an independent organization contracted to provide the service of auditing, certifying an entity’s conformance with an established protocol. Certification bodies must meet defined standards for governance, impartiality, capability, confidentiality, and personnel management. (3) “Certification Schemes” as adapted from ISO 17000, also referred as Third-party Certification, means specially designed methods for verifying conformance of a product, process, or organization. Certification Schemes specify rules and procedures, objects of conformity, requirements, and the methodology for performing conformity assessments. These are frequently based upon internationally developed standards, such as those from ISO or ANSI. Certification Schemes approve Certification Bodies to perform auditing and certification of their scheme according to the defined methodology. (4) “Certification Scheme Owner” means, who is responsible for the development, publishing, and maintenance of the Certification Scheme. These organizations could be government agencies, NGOs, and certification bodies themselves. (5) “Collection rate” means the percentage of a specific material that is collected for recycling calculated by dividing the tonnage collected into the tonnage generated on an annual basis. (6) “Commingled recycling” means the recycling or recovery of two or more materials that are mixed together and that generally would be separated into individual materials at a commingled recycling processing facility in order to be marketed. (7a) “Commingled recycling processing facility” means a facility that: (A) Receives source separated commingled recyclable materials that are collected commingled from a collection program providing the opportunity to recycle; and (B) Separates the recyclable materials described in subparagraph (A) of this paragraph into marketable commodities or streams of materials that are intended for use or further processing by others. (7b) “Commingled recycling processing facility” does not include: (A) Scrap metal recycling facilities; (B) Scrap automotive or appliance recycling facilities; (C) Full-service redemption centers or dealer redemption centers, as those terms are defined in ORS 459A.700, and recycling facilities owned and operated by a distributor cooperative established under ORS 459A.718; 2 (D) Recycling facilities handling covered electronic devices, as defined in ORS 459A.305; (E) Recycling processing facilities that process only noncommingled, source separated recyclable material from commercial entities; (F) Recycling processing facilities that recover commingled recyclable material primarily from the construction and demolition debris waste stream; (G) Recycling depots; (H) Recycling reload facilities; or (I) Limited sort facilities, as defined by rule by the Environmental Quality Commission. (8) “Community Based Organization” means a public or private nonprofit organization that has demonstrated capability in representing or meeting the needs of a specific community or a significant segment of a community. (9) “Contaminant” means: (A) A material set out for recycling collection that is not properly prepared and on the list of materials accepted for recycling collection by a recycling collection program; or (B) A material shipped to a recycling end market that is not accepted or desired by that market. (10) “Contamination” means the presence of one or more contaminants in a recycling collection or commodity stream in an amount or concentration that negatively impacts the value of the material or negatively impacts a processor’s ability to sort that material. (11a) “Covered product” means: (A) Packaging; (B) Printing and writing paper; and (C) Food service ware. (11b) “Covered product” does not include: (A) A beverage container, as defined in ORS 459A.700. (B) Bound books. (C) Napkins, paper towels or other paper intended to be used for cleaning or absorbing liquids. (D) Rigid pallets used as the structural foundation for transporting goods lifted by a forklift, pallet jack or similar device. (E) Specialty packaging items that are used exclusively in industrial or manufacturing processes, including but not limited to: (i) Cores and wraps for rolls of packaging sold by a mill to a packaging converter or food processor; and (ii) Trays, whether designed for a single use or multiple uses, used for the transport of component parts from a parts supplier to a manufacturer that assembles those parts. (F) Liquified petroleum gas containers that are designed to be refilled. (G) A material that the producer demonstrates is exempt under section ORS 459A.869. (H) Pallet wrap or similar packaging used to secure a palletized load if added by a person that is not the producer of the palletized covered products. 3 (I) Packaging related to containers for architectural paint, as defined in ORS 459A.822, that has been collected by a producer responsibility organization under the program established under ORS 459A.820 to 459A.855. (J) Any item that is not ultimately discarded inside this state, whether for purposes of recovery or disposal. (K) Items sold on a farm or used on a farm, including items used for farm use, as defined in ORS 215.203, or for processing on a farm, provided that an item used on a farm is not subsequently sold at a retail establishment that is not located on a farm. (L) Items used by a nursery licensed under ORS 571.055 that generates the majority of the nursery’s revenue through the sale of nursery stock, as defined in ORS 571.005, provided that the items are not sold through retail sales. (M) Packaging and paper products sold or supplied in connection with: (i) Prescription drugs as defined in ORS 689.005; (ii) Nonprescription drugs as defined in ORS 689.005; (iii) Drugs marketed under a brand name as defined in ORS 689.515; or (iv) Drugs marketed under a generic name as defined in ORS 689.515. (N) Packaging and paper products sold or supplied in connection with drugs that are used for animal medicines, including but not limited to parasiticide drugs for animals. (O) Packaging and paper products sold or supplied in connection with: (i) Infant formula as defined in 21 U.S.C. 321(z); (ii) Medical food as defined in 21 U.S.C. 360ee(b)(3); or (iii) Fortified oral nutritional supplements used for individuals who require supplemental or sole source nutrition to meet nutritional needs due to special dietary needs directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, as those terms are defined as by the International Classification of Diseases, Tenth Revision, or other medical conditions as determined by the commission. (P) Wine and spirit containers for which a refund value is established under Oregon law. (Q) Packaging for products: (i) That are required under 40 C.F.R. 156.140, or other federal regulation pertaining to toxic or hazardous materials, to state on the label or container that the packaging should not be recycled or should be disposed of in a manner other than recycling; or (ii) Identified by the commission by rule as product that is required by law to state on the label or container that the packaging should not be recycled or should be disposed of in a manner other than recycling. (R) Any other material, as determined by the commission by rule, after consultation with the Oregon Recycling System Advisory Council. (12) “Desk audit” means an analytical process that is conducted using data or information readily available on the computer that does not entail additional on-site or field-based research or analysis. (13) “Eco-modulate/Eco-modulation” means the utilization of positive and negative incentives (bonuses and maluses) in producer responsibility packaging fees designed to encourage or achieve specific environmental 4 outcomes, such as reducing overall material usage, enhancing recyclability, reducing package to product ratios, or increasing recycled content. (14) “Food service ware” means paper or plastic plates, wraps, cups, bowls, pizza boxes, cutlery, straws, lids, bags, aluminum foil or clamshells or similar containers: (A) That are generally intended for single-use; and (B) That are sold to a retailer or a dine-in food establishment or a take-out food establishment, regardless of whether the item is used to prepackage food for resale, is filled on site for food ordered by a customer or is resold as is. (15) “Generator” means a household, business, or other entity that utilizes and then discards packaging or printed materials to be managed as waste or as reusable, refillable or recyclable material. (16) “Large producer” means a producer that is among the 25 largest producers of covered products based on market share. (17) “Licensee” means a person that is licensed by a brand and manufactures a covered product or a packaged item under that brand. (18) “Litter” means waste that is improperly placed so as to be a nuisance or aesthetic, health or environmental concern. (19) “Local government” means: (A) A city; (B) A county; or (C) A metropolitan service district. (20) “Local government’s service provider” means: (A) A collection service franchise holder under ORS 459A.085; (B) Any person authorized by a city or county to provide recycling collection services described in subsection (25)(a) to (d) of this section; or (C) Any person authorized by a metropolitan service district to provide recycling collection services described in subsection (25)(d) of this section. (21) “Market share” means a producer’s percentage of all covered products sold in or into this state during a specified time period, as calculated in accordance with methods established by the commission by rule. (22) “Mechanical recycling” means a form of recycling that does not change the basic molecular structure of the material being recycled. (23) “Metropolitan service district” means a metropolitan service district established under ORS chapter 268. (24) “Nonprofit organization” means an organization or group of organizations described in section 501(c)(3) of the Internal Revenue Code that is exempt from income tax under section 501(a) of the Internal Revenue Code. (25) “Opportunity to recycle” has the meaning given that term in ORS 459A.005. (26a) “Packaging” means: 5 (A) Materials used for the containment or protection of products, including but not limited to paper, plastic, glass or metal or a mixture thereof; (B) Single-use bags, including but not limited to shopping bags; and (C) Nondurable materials used in storage, shipping or moving, including but not limited to packing materials, moving boxes, file boxes and folders. (26b) “Packaging” does not include: (A) Food service ware; or (B) Sharps, as defined in ORS 459.386. (27) “Parent facility” means a preexisting permitted or other larger facility that may also host a potential PRO depot. (28) “Person” has the meaning given that term in ORS 459.005. (29) “Printing and writing paper” includes, but is not limited to, newspaper, magazines, flyers, brochures, booklets, catalogs, telephone directories and paper used for copying, writing or other general use. (30) “Processor” means a person that owns or operates a commingled recycling processing facility. (31) “Producer” means a person that is determined to be the producer of a covered product under ORS 459A.866. (32) “Producer responsibility organization” means a nonprofit organization established by a producer or group of producers to administer a producer responsibility program. (33) “Producer responsibility program” means a statewide program for the responsible management of covered products that is administered by a producer responsibility organization pursuant to a plan approved by the Department of Environmental Quality under ORS 459A.878. (34) “Recyclate” means recycled material that is used in the manufacturing of new packaging or other products. (35) “Recycling collection” means the act or process of gathering recyclable materials by: (A) On-route residential collection from the generator at the place of generation; (B) On-site nonresidential collection from the generator at the place of generation; (C) Multifamily on-route residential collection from each multifamily dwelling that has five or more units; (D) Recycling depots at a disposal site or another designated location that is more convenient to the population being served and expanded depots as described in ORS 459A.007; or (E) Other collection methods included in an approved producer responsibility program plan. (36) “Recycling depot” means a location where recyclable materials are accepted from the public or commercial businesses and transported to a location for processing or to an end market. (37) “Recycling rate” means the percentage or ratio of a material or set of materials that is collected and processed for recycling divided into the amount of that material or set of materials that is generated. (38) “Recycling reload facility” means a facility other than a recycling depot where recyclable materials are received, consolidated and made ready for transport to another location for processing or to a responsible end market. 6 (39) “Recycling system” means all aspects of the programs and participants that have a role in Oregon’s statewide recycling structure, including producers of products sold in or into Oregon, generators of recyclable materials, governments that regulate materials management programs, businesses that collect and process recyclable materials and persons that receive recyclable materials to convert to new feedstock or products. (40) “Responsible end market” means a materials market in which the recycling or recovery of materials or the disposal of contaminants is conducted in a way that benefits the environment and minimizes risks to public health and worker health and safety. (41) “Responsible management” means the handling, tracking and disposition of covered products from the point of collection through the final destination of the collected material in a way that benefits the environment and minimizes risks to public health and worker health and safety. (42) “Responsible recycling” means the handling of covered products for recycling and removal of contaminants by a certified or permitted processor and disposition to a responsible end market. (43) “Reverse logistics” means the process of returning discarded materials that were distributed to generators back through a supply chain to reuse, refillable or manufacturing end uses. (44) “rPET” designates PET (polyethylene terephthalate) resin derived from discarded PET that has been collected, sorted, and processed into feedstock for the purpose of manufacturing new packaging or other products. (45) “Small producer” means a producer that: (A) Is a nonprofit organization; (B) Is a public body, as defined in ORS 174.109; (C) Has a gross revenue of less than $5 million for the organization’s most recent fiscal year; (D) Sold in or into Oregon less than one metric ton of covered products for use in this state in the most recent calendar year; (E) Is a manufacturer of a beverage sold in a beverage container, as those terms are defined in ORS 459A.700, that sold in or into Oregon less than five metric tons of covered products, including but not limited to secondary and tertiary packaging for beverage containers, for use in this state in the most recent calendar year; (Fa) Is a restaurant, food cart or similar business establishment that primarily sells to members of the public food that is generally intended to be consumed immediately and without the need for further preparation, either on or off the premises; and (Fb) Is not a producer of food service ware as described in ORS 459A.866; or (G) Operates a single retail sales establishment, has no online sales and is not supplied or operated as part of a franchise or a chain. (46) “Specifically identified material” means a material or covered product identified by the department under ORS 459A.917. (47) “Transcreation” means text that is made coherent and understandable in another language, not simply translated word for word. (48) “Uniform statewide collection list” means the list of materials established in accordance with the requirements of ORS 459A.914 (4). 7 (49) “Wasteshed” means a designated area where material is physically generated and managed for disposal, reuse, refilling or recycling. 8 Appendix B: List of Member Producers and Market Share Calculation The companies on the list of registered producers with CAA may be adjusted once the final Phase II rules are published clarifying the definition of producer. Given the ongoing rulemaking process, inclusion on the list of registered producers at this time does not in itself serve as verification of whether a company is an obligated producer. List of Member Producers As of August 2024, CAA received over 1,200 producer registrations representing producers in Oregon. Approximately 90-95% appear to be above the $5 million revenue de minimis threshold based on preliminary third-party data. CAA’s 20 Founding Members as well as a full list of the registered companies is given in the table below. CAA’s 20 Founding Members are: 1. Amazon 11. Mondelez 2. Clorox 12. Nestlé USA 3. Colgate-Palmolive 13. Niagara Bottling, LLC 4. Danone 14. PepsiCo 5. Ferrero US 15. Procter & Gamble 6. General Mills 16. SC Johnson 7. Keurig Dr Pepper 17. Target 8. Kraft Heinz 18. The Coca-Cola Company 9. L’Oréal 19. Unilever United States 10. Mars, Incorporated 20. Walmart 9 circularactionalliance.org Producers registered with CAA in Oregon are: Company Name 3M, Meguiars American Studio Designs Ltd 5.11 Inc. American Textile Company, Incorporated 6th Sense Lure Co. LLC. American Tuna Inc 8th Avenue Food & Provisions Amesbury Industries Inc. d.b.a. AmesburyTruth A. O. Smith Corporation Amika Benefit LLC AAON, Inc. Amway Corporation Abbott Laboratories Amy's Kitchen Inc. Abercrombie and Fitch Company Anagram International, LLC Acer America Corporation Anastasia Beverly Hills, LLC. Acme Smoked Fish Corporation Anchor Packaging, LLC Acqua di Parma LLC Andersen Corporation Adams & Brooks, Inc Anheuser-Busch, LLC adidas America, Inc Aniket Metals Pvt Ltd Advance Stores Company, Incorporated Ansell Healthcare Products LLC AE Outfitters Retail Co. Apple Inc. AFTCO MFG CO, INC. Aqua Divers, Inc. AG1 USA Inc. Aqua Leisure Recreation, LLC AGREM BTY, LLC ARAMARA BEAUTY LLC dba Glow Recipe Agri-Mark, Inc. DBA Cabot Creamery Cooperative Arbonne PBC AKU Outdoor Inc. Arista Networks, Inc. Albaugh LLC Armstrong World Industries, Inc. Albertsons Companies Incorporated Arthur Schuman Incorporated AlEn International Inc. Artoy Industrial Limited Alimentation Couche-Tard / Circle K Stores, Inc. Artsana USA, Incorporated ALKHEMY LLC AS America d/b/a American Standard Brands All-One-God-Faith, Inc. DBA Dr. Bronner's Ashley Furniture Industries, LLC Allbirds, Inc. Aspire Bakeries LLC Altenloh, Brinck & Co. US, INC. Atlantic Corporation of Wilmington, d.b.a. "Atlantic Packaging" Altria Client Services LLC Atlas Roofing Corporation AMAZING CONCEALER COSMETICS INC ATTENDS HEALTHCARE PRODUCTS, INC & Amazon.com Services, LLC ASSOCIATED HYGIENIC PRODUCTS LLC American Honda Motor Company, Inc. Australian Gold, LLC American Licorice Company Axiology LLC Axium Foods B D Loops, Inc 10 B.F. Ascher & Co., Inc. Bimbo Bakery USA Bahlsen North America Inc. BioBag Americas, Inc Bakerly LLC Bioceres Crop Solutions Corp. Ball Corporation BISSELL Homecare, Inc. Ball, Bounce and Sport, Incorporated BKBG Enterprises aka Devanco Foods Ballard Pacific Resources, Inc. Black Diamond Equipment Balsam Brands Inc. Blistex Inc. Bandai Namco Toys & Collectibles America Inc. Blount Fine Foods, Corp Banzai International Limited Blue Diamond Growers Bard Manufacturing Company, Inc. BlueTriton Brands, Inc. Barilla America, Inc. Bob's Red Mill Natural Foods, Inc. Basic Fun, Inc. Bosch Thermotechnology Corporation Bath & Body Works Boston Beer Company BAYER U.S. LLC Bradford White Corporation Baylis & Harding PLC Brand Evangelists for Beauty Incorporated BEF Foods Inc. Brandt Consolidated, Inc. Behr Process LLC Brasscraft Manufacturing Company Beiersdorf Inc Britannica Home Fashions Beko Britax Child Safety, Inc., Britax Bel Brands USA Broan-NuTone LLC Bendon, Inc. Brooklyn Brands Inc. Bento Inc. Brother International Corporation Berry Global BRP US Inc. Best Buy Co., Inc. BSH Home Appliances Corporation Bestway (HongKong) International Ltd Buckle Inc. BESTWAY (HONGKONG) INTERNATIONAL LTD. Buffalo Games Betallic, LLC Build A Bear Retail Management Betco Corporation LLC Bumble Bee Foods, LLC Better Earth, LLC Bunzl Distribution USA, LLC Better Planet Brands LLC Burnham Holdings, Inc. Beyond Meat Inc. ButcherBox OpCo LLC beyondGREEN biotech, Inc. BUZZ BEE TOYS (HK) CO. LIMITED BHARAT EXPORT C.A.L Marketing Proprietary Limited Bi-Mart Corporation C.A.M.P. SpA Costruzione Articoli Montagna Premana BICO INTERNATIONAL CO.,LTD C.P Loewen Enterprises Ltd. Bicycle Tools Incorporated dba Park Tool Company Cadres Columbia Inc Big Lots, Inc. Cafe Valley, Inc. Big Tree Farms Inc. Califia Farms, LLC Bigelow Trading, LTD. California Cedar Products Company dba BLACKWING 11 California Olive Ranch Inc. CJDE Treats LLC d/b/a Treat House Calipak LLC DBA Queen of Cups CKF Incorporated Campbell Soup Company Clarins USA Inc. Campers World Apparel Clean Age Inc Canon U.S.A., Inc. CLEAN BEAUTY COLLECTIVE INC. CAP Barbell, Inc. Clean Beauty for All, Inc. Capital Lighting Fixture Company Clean Body Care, LLC Car-Freshner Corporation Clean Control Corporation Carboline Global Clopay Corporation Cargill, Incorporated Closet Complete, LLC Carhartt, Inc. Club Car, LLC Carl Karcher Enterprises Restaurants Inc. Cocofloss, Inc. Carma Laboratories, Incorporated Colgate-Palmolive Company Carrier Corporation Colonial Chemical, Inc. Cascade Designs Incorporated ColorMetrics LLC Cascade Ice, LLC Columbia Frame Inc. CCA and B, LLC dba The Lumistella Company Columbia Sportswear Company CELLAP LABORATOIRE SA Combe Incorporated Centric Brands Compass GreenTech Limited Certified Origins INC Compass Minerals America Inc. cfeb SISLEY Conagra Brands Champion Petfoods USA Inc. Conagra Brands Inc. Chanel Condair Group AG CHANGYA NEWMATERIAL TECHNOLOGY CO., LTD Conquest Sport Group, LLC Chap Mei Plastic Toys Mfy Ltd. Consilium Tech Limited Liability Company (LLC) CHARLES KOMAR & SONS, INC. (Komar Brands) Constellation Brands, Inc. Chase Products Company Continental Mills, Inc CHEM-PAK INC Contract Packaging Association Chick-fil-A, Inc Cooperative Regions of Organic Producer Pools China Window Industry Co., Ltd. Copeland LP Chobani, LLC Copra Inc Chocolate Quality Chocolate, Inc. Cornerstone Brands, Inc. Christian Dior Perfumes LLC Corteva Agriscience ChromaDex, Inc. Cosco Home & Office Products Church & Dwight Co., Inc. COSMETICS FACTORY INC Cimpress USA Manufacturing Incorporated Cosonic Intelligent Technologies Co., Ltd. CIRANDA INC. Costco Wholesale Corporation Cisco Systems, Inc. COTY USA CITGO Petroleum Corporation COUNTRY MAID, INC 12 CP Flexible Packaging Dixon Ticonderoga Company Crazy Aaron Enterprises Doctor Rogers Skin Solutions Inc CRC Industries, Inc. DOLAN DESIGNS INCORPORATED Crocs, Inc. Dollar General Corporation Crofters Food Ltd. Dollar Tree Stores, Inc. Cummins, Inc. Domino's Pizza, Inc. Curio Brands, LLC Domo Industry Inc Custom Accessories, Inc. Domtar Paper Company, LLC CVS Pharmacy Dongguan Lung Cheong Technology Co.,LTD CY Top, PTE Dongguan Xinhai Environment-Friendly Materials Co . , Ltd D.P.I. (H.K.) LIMITED doTERRA Intl, LLC. D&S Cable Industries (HK) Limited Doughboy Commissary, LLC. Da Bomb LLC Douglas County Bottling Company Dairy Farmers of America Dr. Squatch DANESSA MYRICKS BEAUTY, LLC Dr. Wolff USA Distribution Inc. Danfoss A/S Dream On Me Industries, Inc. Danone US, LLC DreamHigh Toys Co., Ltd DAP Global Inc. Driscoll's, Inc. Dart Container DS Services of America (DBA Primo Water) Dawn Food Products Inc. Duchess Cookies, Inc. DBK (HK) COMPANY LIMITED Duckhorn Wine Company Decathlon America LLC Duke Cannon Supply Co. DECIEM USA LLC Dulcich, Incorporated DEHUIDA VIETNAM TECHNOLOGY COMPANY LIMITED Dunn-Edwards Corporation DeIorio Foods Incorporated Dynamic Discs Inc Del Monte Foods, Inc. Dyno, LLC Delicato Vineyards, LLC E.D. Bullard Company DELL Technologies e.l.f. Cosmetics, Inc Delta Faucet Company Earth Animal Ventures, Inc. Delta Galil Industries East West Tea, LLC. Delta T LLC dba Big Ass Fans Eastman Kodak Company Density Inc. EastPoint Sports Ltd.,LLC DEZI Cosmetics, LLC Eco-Chic LLC dba Credo Beauty Diageo Americas, Inc. Eco-Shell, LP Diamond Vogel, Inc. Ecolab Inc. Direct Pack, Inc. Ecosense Environmental Technology Sdn. Bhd. DiscoverFresh Foods Inc Edgewell Personal Care LLC DBA DiscoverFresh Foods Edward Don and Company Distinctive Foods, LLC Elanco US Inc. Diversey, Inc. 13 Electrolux Consumer Products, Inc. First Day Life Inc. ELENCO ELECTRONICS, LLC First Learning Company Limited Elevate Outdoor Collective, LLC First Lite, LLC Elmich joint stock company First Quality Tissue Emerson Electric Fizz Creations Ltd Energizer Holdings Floor and Decor Outlets of America, Inc. Epic Designer Limited. Flowers, Inc. Epic Trend & Distribution Services Inc. EPIC GARMENTS DWC-LLC Fluidra Epoca International, LLC Flybar, Inc. Equal Exchange, Inc. FMC CORPORATION ESI Cases & Accessories Fonterra USA, Inc. ESSICK AIR PRODUCTS, INC Food Northwest Estee Lauder Companies Foppen Paling en Zalm ET Browne Drug Co Inc Ford Motor Company Etekcity Corporation FORMA Brands, LLC. Ethical Earth Brands LLC Fortune Brands Innovations EuroPharma, Inc Fortune Brands Water Innovations LLC Eurow O Reilly Corporation FOURSTAR GROUP INC. Eva NYC Benefit LLC FOUSINE (HONG KONG) INDUSTRIAL HOLDINGS LIMITED Everest Group USA, INC. Franke Home Solutions North America, LLC Evereve Franklin Sports Incorporated Everlane Inc FRATELLI BERETTA USA, INC. Exxel Outdoors, LLC Free Fly Fishing Company, LLC Fanimation, Inc. French Farmacie, LLC dba French Farmacie FAR OUT TOYS (HK) CO., LIMITED Freshpet, Incorporated Fascinations, Inc. Frog Bikes Inc Fastenal Company Frontier Distribution, LLC Faultless Brands FUJIFILM North America Corporation FCA US LLC Fujitsu General America, Inc. Federated Group, INC Funai Corporation Inc. Feit Electric FUNBOY, INC. Fenix Outdoor Import LLC Furlani Foods Corporation Fera Pets, Inc G-III Apparel Group Ltd. Fera Pets, Inc G-Tex Apparel Inc. Ferguson HVAC West Coast GAF Ferrara Candy Company Gallo Ferrero U.S.A., Inc. Games Workshop Retail Inc. FGF Brands LLC GANZHOU DEHUIDA TECHNOLOGY CO., LTD. Fine Americas Inc. Gap Inc. 14 Garden-Fresh Foods, Inc. Great Lakes Label LLC Gardner Enterprises inc. Greenheck Fan Corporation Garmin International Greensource Brand Apparel, Inc. Garven LLC Grocery Delivery E-Services USA, Inc. dba HelloFresh GE Appliances, a Haier Company Group Rossignol USA INC Generac Groupe SEB USA General Mills Grove Collaborative Holdings, Inc. General Motors Company Gruma Corporation Genesis Industries Limited Grundens USA, Ltd. Genie Supply Inc Grupo Alsur USA, Inc. Genpak, LLC GS Beauty LLC Georgia-Pacific LLC Guangdong Compass GreenTech Limited Gerber Childrenswear LLC Guangdong Ecosource Environmental Technology Co., Ltd. GESIN (ZHANGPU) CO., LTD Guayaki Sustainable Rainforest Products Inc GG Brands Company Guthy-Renker, LLC GI-GO TOYS FACTORY LTD H&M Fashion USA, Inc. / H&M Group Gillyboo Corporation Habermaass Corp. Inc. Ginsey Industries, Inc Haddad Apparel Group Limited Give Back Beauty LLC Hakubaku USA, Inc. Giving Beauty LLC HAKVIR, LLC dba Reflekt Glanbia Performance Nutrition (NA), Inc. Haleon US Holdings LLC Global Uprising (PBC) - Known as Cotopaxi Halfdays Apparel Corp. Global-Pak, Inc. Hallmark Cards, Incorporated Glossier, Inc. Hamedata Technology Co., Limited Go BRIXY, Inc. Hamilton Beach Brands, Inc. Goetze's Candy Company, Inc. HAN Skincare Cosmetics GOJO Industries, Incorporated Hanchett Paper Company d/b/a Shorr Packaging Corp Gold, Inc., dba Goldbug hand2mind Golden Cannoli Shells Co. Inc. HANGZHOU GREATSTAR INDUSTRIAL CO.,LTD Golden West Trading LLC Hansgrohe INC Good Smile Company U.S., Inc. Happy Arts & Craftsï¼Ningboï¼Co., Ltd GoodCrop Inc Harmless Harvest, Inc. Google LLC Hartex Rubber Private Limited, India Google, Inc. Hartford-Jackson, LLC GoPro Hasbro Inc. Gorton's Inc Hawaiian Host Group Gowan Company Haws Corporation Granny B's Cookies Heineken USA Incorporated Graphic Packaging International Helen of Troy L.P. 15 Helena Agri-Enterprises, LLC ILIA Inc. HELLY HANSEN U.S., INC. Illinois Tool Works Inc. Henkel Corporation Image International Manufacturing, LLC dba Image Skincare Herb Pharm LLC Impossible Foods Inc. Herbert Malarkey Roofing Company Independent Bakers Association (IBA) Herbruck Poultry Ranch, Inc. Indo Count Industries Ltd Heritage Specialty Foods Innersense Organic Beauty, Inc HERO ECOTECH LIMITED Inno-Pak, LLC HESINGINT ' L TRADING CO.,LTD Innovative Water Care Global Corporation Highline Warren LLC Inspired Beauty Brands, Inc. Hillyard, Inc. Intel Corporation Hilti International Vitamin Corporation Himatsingka Linens (A division of Himatsingka Seide Ltd.) Intertape Polymer Corp. HLB90067, Inc. Intex Recreation Corp Hoffmaster Group, Inc. Intradeco Apparel Inc Holcim Solutions and Products US LLC Irving Consumer Products Ltd Home Depot USA, Inc ITG Holdings USA Inc. Honey Can Do International, LLC Itoen North America Inc. Honeysticks Limited J&B Importers, Inc Hong Kong Etech Groups Ltd Jack in the Box Inc. HONGKONG HONOR HIGH TECH CO., LIMITED Jackson Family Wines, Inc. HOPPE North America, Inc. Jadex Inc. Horizon Group USA, Inc. Jafra Cosmetics International Inc Hormel Foods Corporation JAM Packaging LLC. HP Hood LLC Jamieson Wellness Inc. HP Inc Jazwares, LLC HR Beauty aka rhode skin JDEP Blue Moon Hubei Aishida Electrical Equipment CO Ltd JELD-WEN Hughson Nut, Inc. Jelly Belly Candy Company Huhtamaki Jelmar LLC HUIZHOU WEIDE ELECTRONICS CO., LTD Jiangsu Phoenix Art Materials Technology Co., Ltd. Hunter Fan Company Jim Beam Brands Co. Husqvarna Professional Products, Inc. JMW Sales, Inc. 101 A Street Ashland, OR 97520 USA Hussmann Corporation JOANN Inc. Hyper Bicycles, Inc. Jockey International, Inc. IERO BEAUTY LLC John B. Sanfilippo & Son, Inc. IKEA Food Supply (US) Inc. John Paul Mitchell Systems IKEA North America Services John Soules Foods, Inc IKEA Supply AG Johns Manville 16 Johnson Controls, Inc. Kraus USA Plumbing LLC Johnson Outdoors Inc. KraveBeauty LLC Joie Children's Products, Inc. Kruger Products Inc. Josh Rosebrook Skin and Hair Care LLC KSF Acquisition Corp. JSP Limited Kuat Innovations LLC Just Born, Inc. Kubota North America JustSteven, LLC dba Jones Road Beauty KUIU LLC JVCKENWOOD USA Corporation Kunal Housewares Private Limited. Kai Rui Company Limited L. L. Bean, Inc. Kai Rui Enterprises (Hong Kong) Limited L. Perrigo Company KAI USA LTD. L'Occitane, Inc. Kan-Pak, LLC L'Oréal KAO USA La Jolla Group Inc Kaper Industrial Limited LA SAVONNERIE ROYALE Kari Gran Incorporated La Sportiva N.A., Inc Kellanova La Sportiva N.A., Inc. Kem Krest LA-CO Industries Inc. Ken's Foods, Inc. Lachman Imports Inc. Kendo Holdings Inc. LaCrosse Footwear, Inc. Kent International Inc. Lamb Weston Holdings, Inc. Kent Precision Foods Group, Inc. LAMUES TECHNOLOGY CO., LTD. Keurig Dr Pepper Lancaster Colony Corporation KHANG AN FOODS JOINT STOCK COMPANY Land O'Lakes, Inc. Kichler Lighting LLC Lassonde Pappas and Company, Inc. KIK Consumer Products LATICRETE International, Inc Kimberly-Clark Corporation Lawson Products Kinfield, Inc. Leapfrog Product Development, LLC KIRK'S NATURAL LLC Learning Resources Kitchen Fresh Candies, Inc. Leclerc Foods USA, inc. Klean Kanteen, Inc. Lee Kum Kee (U.S.A.) Inc. Klein Tools, Inc. LEGELITE TECHNOLOGY LIMITED KnitWell Intermediate, Inc. Legend Brands Kodiak Cakes, LLC LEGO Brand Retail, Inc. Kohler Company Legrand AV, Inc. Koki Holdings America Ltd. Lenovo (United States) Inc. Kolbe and Kolbe Millwork Co., Inc. Lenox Corporation Kosas Cosmetics, LLC Leprino Foods Company KQS INC. Les Aliments Dainty Foods Inc. Kraft Heinz Foods Company Levi Strauss & Co. 17 LG Electronics USA, Inc. Mars Incorporated Inc. Lian Sheng (Dongguan) Packing & Printing Co .,Ltd Martin's Famous Pastry Shoppe, Inc. Lian Sheng (Putian) Packing & Printing Co .,Ltd Mary Kay Inc. Lian Sheng (Xiamen) Offset Printing Co .,Ltd Masco Canada Limited Liansheng Corporation Massimo Zanetti Beverage USA, Inc.* Liberty Hardware Manufacturing Corporation Masterfit Enterprises, Inc. LIBRA PACIFIC CO., LTD Mattel, Inc. Life 360 Inc. Max Base Industrial Limited LifeWave Inc. Maxim (Taiwan) Company Ltd. LIMINAL, LC Maxim Company ( Taiwan) LTD. Lindt & Sprüngli (North America), Inc McCain Foods Limited LINHAI BOLI-FAR LIGHTING PRODUCING CO.,LTD McCormick & Company, Inc. Linhai Pingfeng Lighting Co., Ltd. McDonald's USA, LLC Linhai Yinhe Electric Lamp Company MCG international Liphatech, Inc. McKee Foods Corporation Liqui Moly GmbH McLaughlin, Gormley and King LIXIL MCS Industries, Inc. Ljulja Beauty Inc. dba Makeup by Mario Mead Johnson & Company, LLC LOLE BRANDs CANADA ULC Medal Sports Taiwan Corp. Lorax EPI Mederer of North America, Inc. Loveland Products, Inc. MegaMex Foods, LLC Lowe's Companies, Inc. Mellow, Inc lululemon usa inc. Mercuries Asia Ltd. Lush USA Inc Merkury Innovations LLC Lutron Electronics Co., Inc. Meta Platforms Technologies, LLC Luxshare Precision Limited Metagenics LLC LVMH Mettler-Toledo, LLC Lynden Door Inc. Michael Kors (USA), Inc. M+ODE Products LLC Michaels Stores, Inc. Macy's, Inc. Microsoft Corporation Maelys Cosmetics USA Inc Midlab, Inc. Maesa LLC Migoal Technology Co., Ltd Maestri d'Italia Inc. MILIKA INC Mahco Inc MillerKnoll MAKALOT Industrial Co., Ltd., Millet Mountain Group SAS Makhteshim Agan of North America, Inc. Mindful Nourishment LLC dba Zing Bars MANSCAPED, INC Minnark Group LLC Mantose-Haeuser Co. Mitsubishi Electric US Holdings, Inc. Maple Leaf Foods Inc. Mizkan America, Inc. 18 MJC Confections LLC Nicole Tonic Studios Inc. MOB BEAUTY INC. Nien Made Enterprise Co., LTD. Mobility Holdings, Limited Nike Incorporated Molson Coors Beverage Company Nikwax North America Inc. Mon Chateau LLC Ningbo Beslight Imp.&Exp.,Ltd. Mondelez International Ningbo Brothers Optoelectronics Technology Co., LTd. Morinaga America, Inc. Ningbo Feihong Stationery Co.,Ltd MOS Inc. NINGBO FEIHONG STATIONERY LIMITED CORPORATION Motherlove Herbal Company NINGBO FENGZE DAILY-USE COMMODITY CO., LTD Mountain Rose Herbs NINGBO FULLRIGHT ELECTRONIC CO.,LTD Musco Olive Products Inc. NINGBO GOLDLAND INDUSTRY AND TECHNOLOGY CO.,LTD Musco Sports Lighting, LLC NINGBO KINGTOP INDUSTRY AND TECHNOLOGY CO.,LTD NAOS USA INC. Ningbo Lisi Import and Export Co Ltd Nash Publishing Group, LLC NINGBO MERRYART GLOW-TECH CO.,LTD. Nation Botanics Ningbo Paramont US Inc. National Presto Industries, Inc. NINGBO TAIOOR COOKWARE CO., LTD Natural Factors Nutritional Products Inc. Ningbo Zhonghao Electric Co., Ltd. Nature's Path Foods Inc. Ninghai Xiecheng Rubber and Plastic Co.,Ltd. Natures Treats LLC Nintendo of America Inc. Navitas LLC dba Navitas Organics Nisco (Thailand) Co., Ltd NCH Corporation Nissan Motor Co. Ltd. Neal's Yard Holding Inc. Nissin Foods (U.S.A.) Company, Inc. Negative Inc. Niu Body Inc. o/a Three Ships Nehemiah Manufacturing Company, LLC No7 Beauty Company Neo G USA Inc. Nordstrom, Inc. Neoteric Cosmetics, Inc. Northern Technologies International Corporation (NTIC) Nestle USA Novolex Holdings LLC NetApp, Inc. Nu Skin Products, Inc. NETGEAR, Inc. Nulastin, Inc. New Balance Athletics, Inc. Nuna Baby Essentials, Inc. New Belgium Brewing Company, Inc. Nursery Supplies, Inc. New Milani Group LLC Nutraceutical Corporation New WinCup Holdings, Inc. Nutrien Ag Solutions, LLC New World Imports, Incorporated NUVIK USA Inc. DBA Crocodile Cloth Newegg Inc. Oatly AB Newell Brands, Inc. Ocean Spray Cranberries, Inc. dba Ocean Spray Niagara Bottling, LLC Odele, LLC Nice-Pak Products Inc. OFD Foods, LLC Nichols Pistachio Olam Holdings Inc. 19 Olaplex Inc. Patagonia Works Old hickory smokehouse PCHI Old World Spices and Seasonings, dba OWS Foods, LLC Peanut Butter & Co, Inc. Olds Products Co of Illinois Peerless-AV Ole Smoky Distillery Peet's Coffee, Inc Ollie Pella Corporation OLLY Public Benefit Corporation Peloton Interactive, Inc. Once Upon A Farm, Public Benefit Corporation Penn Emblem Company One Frozen LLC Penny Plate, LLC ONNIT LABS, INC Pentland Brands Limited Oral Care Products, LLC PepsiCo, Inc Orangebox Limited Perfetti Van Melle Group Orbit Irrigation Products, LLC Performance Designed Products LLC Oregon Potato Company Perlick Corporation Oregon Potato Company Peruana de Moldeados S.A.C. Oregon Precision Industries, Inc. D/B/A Paktech Pescanova Inc. Ornua Foods North America Pescanova, Inc. Orora Packaging Solutions Petcurean Pet Foods Ltd. Ortlieb USA LLC Peter Thomas Roth LLC Otis Mcallister, Inc. PetSmart Otter Products, LLC Pfizer Over & Back LLC Pharmaceutical Specialties, Incorporated 90 Adams Ave. Ste B Hauppauge, NY 11788 Pharmavite LLC Overseas Food Trading LTD. Pierre Fabre Dermo-Cosmetique Inc. Owens Corning Pilot Pen Corporation of America P.J Chonburi PARAWOOD co.,LTD. Piping Rock Health Products, LLC PAC Worldwide Plaine Products Paceline Products, Inc. Plastic Perfect Pacific Coast Producers PLAYGO TOYS ENTERPRISES LIMITED Pacifica Beauty, LLC Playground For All, Inc. Packaging with Print Plexus Worldwide, LLC Pact Collective PLZ Corp Pactiv Evergreen Inc. Polaris Industries Incorporated Paisley Crafts, LLC, DBA iLoveToCreate Poly-America, L.P. Panasonic Corporation of North America Polygroup North America, Inc. Panera Bread, LLC Polyvinyl Films, Inc. Papatui LLC Pompeian, Inc. PARADISE KIDS LLC Popzup Popcorn Parfums de Coeur Ltd Porsche Cars North America, Inc. Paris Presents Incorporated 20 POSHI LLC Real Value LLC. DBA Simple Modern Positec Technology China Co., Ltd. Reckitt Benckiser LLC Post Holdings, Inc. Recochem Powpack LLC Recreational Equipment, Inc Pregis LLC Recycline, Inc dba Preserve Premier Nutrition Company Red Bull North America Premium Waters, Inc. Red Gold, Inc. Pressed Paperboard Technologies, L.L.C. Red River Foods Inc. Prestone Products Corporation RefrigiWear, LLC Prime Resins, Inc. Regal Rexnord Corporation Prime Time Toys Ltd. Renfro Foods, Inc. Primera Technology, Inc. Repligen Corporation Printing Partners Group OU Republic Plastics LTD ProAmpac Holdings LLC. Reser's Fine Foods Productos Alimenticios DIANA, S.A. de C.V. RESPONSIBLE PRODUCTS LIMITED Professional Disposables International, Inc. (PDI) Revlon Consumer Products LLC Professor Puzzle Ltd Revolution Sustainable Solutions, LLC Prokoz, Inc. Reynolds American Inc. ProVia Reynolds Consumer Products PT.LUNG CHEONG BROTHERS INDUSTRIAL Rheem Manufacturing Company PurposeBuilt Brands Rheya Inc. Pyramex Safety Products, LLC. Ribbon Communications Operating Company, Inc. QTOP USA INC Rich Products Corporation Quality Bicycle Products Richemont North America, Inc. Quebec Inc. Righteous Gelato LTD QuestSpecialty Corporation Riverside Natural Foods Ltd. QVC, Inc. RL INDUSTRY COMPANY LIMITED R. M. Palmer Company, LLC RMS Organics, LLC R&G Divergency LLC Rob's Brand's LLC D?B?A Vegan Rob's Rad Power Bikes Robert Bosch LLC Radians, Inc. Rockline Industries, Inc. Rainbow Balloons Inc. Ronpak, Inc. Ralph Lauren Corporation Room & Board, Inc. Rana Meal Solutions, LLC Ross Stores, Inc. Rand Design Ltd Royce Too LLC Rare Beauty, LLC RPM Industrial Coatings Group, Inc. Raw Sugar Living, LLC. Ruff Wear, Inc. Razor USA, LLC Rust-Oleum Corporation RB Health (US) LLC S.C. Johnson and Son, Inc. 21 S.M. Products (B.C.) Ltd. Shandong Glassware Corporation Sabert Corporation Shanghai Phoenix Imp. & Exp. Co., Ltd Sabra Dipping Company, LLC Shaoneng Group Guangdong Luzhou ECO Technology Co., Ltd. Saigon Furniture Company Limited SharkNinja Operating LLC Saint-Gobain Corporation Shenzhen Cannice Technology Co.,Ltd Salem One Incorporated Shenzhen Fenda Technology CO., LTD. FENDA (HONG KONG) HOLDING CO., LIMITED. Sales Force Won! LTD SHINWON CO. Sally Beauty Holdings, Inc. Shiseido Americas Corporation Sambazon Inc. Shurtape Technologies, Limited Liability Company Samsonite LLC Sierra Pacific Windows (a division of Sierra Pacific Industries) Samsung Electronics America, Inc. Signify North America Corporation Samsung Lennox HVAC North America, LLC Simple Mills Santoki Limited Liability Company SiriusXM Radio, Inc SAP SE Skims Body, Inc. Saputo Cheese USA, Inc. Skinfix Inc. Sara Lee Frozen Bakery, LLC Sky Organics LLC Sargento Foods Inc. SM GLOBAL KOREA CO., LTD. Savant Technologies LLC SM Global, LLC. Savencia Fromage & Dairy Smart Planet Technologies, Inc. SBM Life Science Corp SmartyPants Inc. Scale Media, Inc SMEG S.p.A. Scentsy, Inc Smith Sport Optics, Inc. Schneider Electric IT Corporation Smithfield Foods, Inc Schroeder & Tremayne, Incorporated Smithfoods, Inc. Schwabe North America, Inc. Snap-on Incorporated Schwan’s Company Snow Peak USA, Inc. Schylling Inc. Sol de Janeiro USA, Inc. Science of Skincare dba Innovative Skincare Solspring Market Sealed Air Corporation Solventum Corporation Seaman Paper of Massachusetts, Inc. Sonos Inc. Second Bite Foods, Inc. Sony Corporation of America Seda North America Sound n Light Animatronics Co. Ltd. See's Candy Shops, Incorporated Southern Telecom Inc Seirus Innovative Accessories Inc. Southwire Company LLC Seneca Foods corporation Spangler Candy Company SePRO Corporation Spartan Chemical Company, Inc. Sev-Rend Specialty Technologies LLC dba SVS Shakedown street Specialty Technologies, LLC SHANDONG EXCEL LIGHT INDUSTRIAL PRODUCTS CO.,LTD Spectrum Brands, Inc. 22 Spin Master, Inc. Sylvamo North America, LLC Sprite Industries Incorporated Syngenta Crop Protection, LLC SRAM, LLC Sysco Corporation Starbucks Corporation Tack Cheung Plastic Manufactory Ltd Stark Future USA LLC Taco Bell Corp. StarKist Co. Taffy Town, Inc. State Industrial Products Corporation Taizhou Honglai Electronic Technology Co., Ltd Ste. Michelle Wine Estates LLC TaiZhou HuangYan ZhaoXing Crafts Co.,Ltd Steelcase Inc TAIZHOU JUJIN ARTS&CRAFTS CO.,LTD STERIL-AIRE, LLC Taizhou Meiqile Handicraft Co., Ltd Steven Madden Limited Talking Rain Beverage Company, Inc. Stevison Ham Company Target Corporation STIHL Incorporated Tarte Stila Styles, LLC Tatcha LLC Stonhard, Division of StonCor Group, Inc. Taylor Fresh Foods, Inc. Storck USA, L.P. TC Transcontinental Packaging Inc. Stout Stuff, LLC TCF Holdings, Inc Streamlight Inc. Tempur Sealy International, Inc. Suave Brands Co, LLC Tenacious Holdings Inc. Subaru of America, Inc. TENWEI (HONGKONG) TECHNOLOGY CO., LIMITED Subzero Group, Inc. TePe Oral Health Care, INC. Suit Up Brands LLC. Textron Specialized Vehicles Summer Fridays LLC The Bazooka Companies, LLC Sun Bum. LLC The Body Firm, LLC Sunkist Growers, Inc. The Brass Key Inc. SUNNY DAYS ENTERTAINMENT, LLC The Children's Place, Inc. SunOpta Grains and Foods Inc. The Clorox Company Sunshine Makers, Inc. The Coca-Cola Company Superior Foods, Inc. The Decorated Cookie Company, LLC d/b/a Corso's Cookies Superior Group of Companies, Inc. SGC, Inc. The Dow Chemical Company SUPPLIER The Finish Line Inc. Sustainable Packaging Industries LLC The Foreign Candy Company, Inc. Sutter Home Winery, Inc. The Future of Latinx Beauty Inc. The Hain Celestial Group, Inc. Suzuki Marine USA, LLC The Hartz Mountain Corporation Suzuki Motor USA, LLC The HC Companies Swanson Health Products The Hershey Company Swedish Match North America LLC The Honest Company, Inc. Sweet Candy Company The J.M. Smucker Company Swen Products, Inc. The Kroger Co. 23 The Kyjen Company LLC, dba Outward Hound Tractor Supply Company The Lagunitas Brewing Company Treehouse California Almonds, LLC The LIV Group Inc. Trek Bicycle Corporation The Martin-Brower Company, L.L.C. TREMCO CPG, INC. The Marvin Companies, Inc. Trinidad Benham Corporation The Modern Fan Company The Nunes Company, Inc. True Sons Grooming Inc The Original Cakerie Co. TTE Technology, Inc. dba TCL North America The Pampered Chef, Ltd. Tu-K Industries The Pictsweet Company Tube Investments of India (Unit - TI Cycles of India) The Procter & Gamble Distributing LLC Tumi, Inc. The Purple Cow Advents LLC Uline, Inc. The Purple Cow America Inc. Ulta Inc. The QUIKRETE Companies LLC Ultraorganics Worldwide The Radio Flyer Company Under Armour, Inc. The Scotts Miracle Gro Company Unilever The Sherwin-Williams Company The TJX Companies, Inc. Unique Industries, Inc. The Toro Company United Legwear and Apparel Company The Walt Disney Company United Natural Foods, Inc. dba UNFI The Wendy's Company United States Bakery dba Franz Family Bakeries The William Carter Company UNIVERSAL CANDLE CO LTD The Wonderful Company LLC Universal Candle Vietnam Company Limited Thea Pharma Inc. Universal Protein Supplements Corp. DBA Universal Nutrition Theo Chocolate Inc UPL NA Inc. Thermos L.L.C. UPM-Kymmene Investment, Inc. Thomas Foods International USA Uponor, Inc. Three Trees Foods, Inc. Urban Farmer, Limited Liability Company Tillamook County Creamery Association Ursa Major Natural Care LLC Time's Up Inc US Foods, Inc. Timex Group USA Inc USANA Health Science TIONG TAT PRINTING INDUSTRY SDN BHD Utz Brands, Inc Toaster Labs LLC, DBA Pulse UV RESOURCES, LLC Todson Inc. Valent USA LLC Tommy Bahama Group, Inc. Valken, Inc. Topco Associates, LLC Vanguard Soap LLC Topgolf Callaway Brands Corporation Vanicream Topway EM Enterprise Ltd Vegamour Inc. TOY BOX LIMITED Velong Enterprises Co., LTD;VELONG (CAMBODIA) INDUSTRIES CO., LTD Toyota Motor North America VELUX America LLC TPBI Public Company Limited Ventura Foods, LLC 24 Verde Bioresins Walgreens Versuni USA Corporation Walker and Company Brands VF Corporation Walmart, Inc Victoria's Secret & Co Water Tech Corp Watkins Incorporated Viega LLC Watts Water Technologies, Inc. ViewSonic Corporation WAY DONG COMPANY LIMITED Virtue Labs, LLC Wayfair Vista Outdoor, Inc and/or Revelyst, Inc. (Vista Outdoor is in the process of spinning/separating WD-40 Company companies) We evolvetogether Limited Liability Company Vital Farms, Inc. Vital Farms Weather Shield Mfg., Inc. Vitamin World USA Corporation WEIHAI LUDA ART&CRAFT CO., LTD Viva 5, LLC doing business as Growve Welch Foods Inc., A Cooperative VIZIO, Inc. WeldWerks Brewing Co., LLC Volkswagen Group of America, INC. Wellness Pet Company Volm Companies Wells Enterprises, Inc. Vornado Air LLC WELLWARES (SHIJIAZHUANG) LIMITED VOXX Electronics Corporation Welly Health PBC (Public Benefit Corporation) Vuori, Inc. Wenzhou Jinfeng Crafts Co.,Ltd W Sternoff LLC West Liberty Foods LLC W. F. Young Incorprated Western Ice Company, LLC W. L. Gore & Associates Westinghouse Lighting W.L. ACTIVEWEAR Westman Atelier, LLC W.M. Barr & Co., Inc. WestRock CP Limited Liability Company W&K Import and Export Company Limited Wheels Manufacturing, LLC Wahl Clipper Corporation WHIRLPOOL CORPORATION Wahoo Fitness L.L.C. Whole Foods Market Services, Inc Wald Family Foods Limited Liability Corporation Company Wilbur-Ellis Holdings II, LLC Wildlife Research Center, inc. CAA Oregon Market Share Calculation Methodology CAA took the following steps to calculate an estimate of CAA’s member companies’ supply to the Oregon market. Estimate of CAA Producer Member Supply (Numerator) To estimate the numerator, CAA carried out a data analysis and modeling exercise to develop a potential range in the amount of supplied material from producer members. Because the majority of producers have not submitted any data to CAA as yet, there is a relatively high degree of uncertainty in the estimated range. The following steps outline the process that CAA undertook to calculate producer member supply: 25 • For the first program plan submission, CAA asked its 20 founding member companies to provide the total tons of packaging they supplied into Oregon in 2022. The 20 Founding Member companies listed above represent an array of consumer-packaged goods firms and hold significant market share nationally across an array of consumer products that are under the scope of Oregon’s Recycling Modernization Act. CAA provided instructions to these companies on the types of packaging to include and exclude (e.g., exclude packaging covered under Oregon’s container deposit program). Once this data was received, CAA made minor adjustments to ensure all data was in the same unit (pounds). Some member companies were only able to provide national data. For the companies that provided national data, we used U.S. Census data to calculate the percentage of the U.S. population living in Oregon and applied that percentage to the companies’ national data to extrapolate a supply estimate for Oregon. • Subsequent to the submission of the first program plan, further analysis of the supplied data and subsequent revisions provided by some of the founding members suggested that the expected supplied tons from founding members would likely lie within the range of 130,000 tons to 160,000 tons. • In preparation for the second program plan, CAA modeled the amount of supply tons based on current membership. CAA estimates that currently registered producers are supplying around 380,000 to 630,000 tons of covered material to the market. Until data is reported by producer members, there is a high degree of uncertainty in the numbers and these modeled outputs should be taken as directional only. Between now and the data reporting deadline of March 31, 2025, it is anticipated that additional producers will register with CAA, and therefore the total supplied tons from member producers will increase from the estimate range given above. As it is not known how many or what size of producers are still to register, it is not possible to estimate additional tons with any accuracy. However, an additional 5% is added to the supplied tons to anticipate some further increase. This gives an estimated range of member producer supplied tons between 400,000 and 660,000. Please note: CAA anticipates that the scope of obligated covered product packaging for purposes of producer supply reports will become clearer for producers once related RMA rulemaking processes are completed and CAA develops more detailed educational and resource materials. As such, actual member supply tonnage may vary. Estimate of Total Print and Packaging Generation in Oregon (Denominator) Oregon DEQ provided access to data developed for DEQ by the consulting firm Cascadia Consulting Group, Inc. that was used to estimate impacts of infrastructure improvements and various material collection scenarios. CAA used the data from the 2020 pre-RMA work to produce an estimate of the overall covered paper product and packaging supply to Oregon for the purpose of calculating a market share denominator. Please Note: Although this data represents the best available diversion data at this time for the purposes of estimating total covered product supply, more accurate information will become available when all producers generate supply reports as the Program Plan begins operations. Total state covered product supply based on producer supply reports may be significantly lower than this initial estimate. Utilization of this dataset required a set of “reduction” elements to account for materials which are not covered products under the RMA, including Bottle Bill materials, some industrial or other non-consumer facing materials, and materials produced by “small producers.” These factors were deployed against the denominator estimate to reduce the overall number. 26 The Cascadia dataset includes the material volumes generated from residential and commercial sources in 2017 and projected for 2025 (forecast to 2026), for a total of 50 materials. Forty of those materials are considered to be print and packaging related. Note that the data suggests that ~35% of materials are generated from residential routes while ~54% are generated from commercial routes. See table below. Total Print & 2017 2026 (Projected) Change Packaging Tonnage 1,476,000 1,630,000 154,000 Share of Total Percent Single-family Residential (on route) 29% 27% -2% Multifamily Residential (on-route) 7% 6% 0%* Commercial (on-route) 31% 31% 0% Other Commercial 22% 24% 2% Self-Haul (excl. Bottle Bill) 7% 7% 0% Bottle Bill 5% 5% 0% TOTAL 100% 100% 0% Table i Between 2017 and 2026, volumes are projected to increase by 154,000 tons or 10.4%. Cardboard, PE film and HDPE tubs are expected to increase the most during this period (on a percentage basis) while newspaper, printing and writing paper are expected to decrease the most. The average year-over-year percent change in volumes for each material over the 10-year period was applied to the 2017 baseline and escalated to the 2022 year, which is the year for which producer supply data is being requested. This results in total generated tons of 1,561,000 tons. In accordance with the scope of the Oregon program, further analysis was undertaken to reduce the total estimated tons to account for exemptions and exclusions.1 The following reductions were estimated from the Cascadia dataset and applied to the estimated tonnage in 2022: Exclusions Reduced Tonnage Reason and Assumptions Compostable paper 86,857 Non-Recoverable Material2 121,973 Beverage Containers on Deposit3 141,965 Tonnage of PET, HDPE, aluminum, steel, glass beverage containers on deposit was reduced 1 Based on definitions under ORS 459A.863(6). 2 Cascadia defines ‘non recoverable material’ as material which is not covered under the RMA. 3 Based on beverage container definition, under ORS 459A.700. 27 Tonnage associated with packaging materials generated by small producers and free riders. The de minimis thresholds are less Small Producers’ Materials4 181,531 than$5 million in gross revenues or up to one ton of packaging supplied. Assumed 15% reduction to overall net tons based on past experience in Canadian jurisdictions. Contamination/Moisture Tonnage associated with contamination and moisture in the Adjustment to Collected 102,867 collected materials will not be reported by producers as supply. Materials Assumed 10% reduction to overall net tons. TOTAL 925,807 Table ii In addition, an analysis was undertaken of the differentials between the reporting from PROs in Canada and the figures above, taking into account the following factors to ensure comparable extrapolation: • Purchasing power parity • Disposable household incomes • Adjustments for historic lightweighting effects of participation in fee payable paper and packaging stewardship (EPR) schemes • Scope of materials – particularly the difference in coverage of commercial waste streams Resulting Market Share Estimate As mentioned above, there is a high degree of uncertainty in the market share projections at this point, due to the very limited data available prior to reporting deadlines in March 2025. Dividing the range of numerator estimates by the range of denominator estimates results in an estimate of current CAA member companies covered product market share supply by weight in Oregon. The lowest likely market share projection is around 40%. This is over double the estimated market share presented in the previous Program Plan submission, showing at a minimum a large increase. A larger market share is possible, but the availability of data limits certainty. CAA anticipates further increases in membership that will add to the total CAA market share prior to program plan implementation, with more accurate estimates of market share being possible after member company data has been submitted and verified. 4 Based on ORS 459A.863(32). Volume of material associated with small producers will be difficult to accurately assess until all producers are reporting supply into the Oregon market. 28 Appendix C: CAA Organizational Structure As noted in the program plan, Circular Action Alliance (CAA) is a nonprofit organization established to fulfill producer obligations related to EPR statutes in a number of states, including Oregon. CAA has utilized the services of The Recycling Partnership (TRP) to support the development of the Oregon program plan. An organizational chart is included on the following pages. 29 circularactionalliance.org 30 31 circularactionalliance.org Appendix D: Stakeholder Engagement During the development of this program plan, CAA and its partners have engaged and consulted with a large number of relevant stakeholders. While insights from some have been included within the narrative of the plan, others preferred their perspective to remain unofficial at this stage. Local Governments, Service Providers (select groups and existing depot operators) Note: The list below does not include all entities that participated in the Oregon Recycling System Optimization Project (ORSOP). • Metro Regional Governments (group) – multiple • Dahl Disposal Services engagements across different topic areas • North Lincoln Sanitary • City of Salem and service providers • Thompson Sanitation • Columbia County Government • Southern Oregon Sanitation • Deschutes County Government with Cities and service • Brandt’s Sanitary Service providers • Royal Refuse • Lane County Government with Cities and service providers • Loren’s Sanitation Services • Marion County Government with Cities and service • Dahl & Dahl, Inc providers • Valley Recycling • Lincoln County Government with Cities and service • Nestucca Valley Recycling providers • Sutherlin Sanitary • Milton-Freewater and DEQ regional rep • Humbert Refuse • City of Corvallis • Roseburg Disposal Company • Rogue Disposal (dba Waste Connections), Thompson • Pacific Sanitation Sanitary, Dahl Disposal, Pendleton Sanitary • Suburban Garbage Service • Tillamook County Government with Cities and service • Pride Disposal and Recycling Company providers • Apex Recycling and Disposal • Washington County and all cities in the IGA • D&O Garbage Service, Inc • Waste Management • City Sanitary Service • Recology of Oregon • Cascade Disposal Co. • Waste Connections • South Umpqua Disposal Company • Republic Services • Valley Recycling and Disposal Potential Additional Depot Material Partners 32 circularactionalliance.org • Habitat ReStore • Metro HHW program • Ground Score • St. Vincent de Paul • Ridwell • The Arc of Portland • BRING • Oregon Beverage Recycling • Mattress Recycling Council Cooperative • PaintCare • James Recycling End Markets • D6 • Reynolds Foil • Glass-to-Glass Inc. • DirectPack • Gottlieb • Sibelco (formerly Strategic • Denton Plastics • Real Alloy Materials) • EFS-Plastics • Recycle Aerosol • Knauf Insulation • Merlin Plastics • NORPAC • CellMark • ORPET • Sonoco • SeaPort International • Indorama • Cascade • Canusha Hershman • KW Plastics • Nucor • Town Trading • FoamCycle • PakTech • National Fiber • Intco • New Indy Recycling • Potential Industries • Polystyvert • Georgia Pacific • ICF Global • Rennueva • Pratt Industries • Pioneer International • FreePoint Ecosystems • Port Townsend Paper • Allan Company • Nexus Circular • Indorama • America Chung Nam • PureCycle • K&S Recycling • Federal International • Royal Interpack • Juno LLC • rPlanet Earth • Cascades CRPFs • EFI Recycling • Pioneer Recycling Services • Far West Recycling • Walla Walla Recycling • Garten Services • Waste Connections of West Vancouver • Eco Sort • Waste Management Other / Trade Associations • American Forest & Paper Association (AF&PA) • Can Manufacturers Institute (CMI) • Association of Plastic Recyclers (APR) • Carton Council of North America 33 • Closed Loop Partners / NextGen Consortium • North American Insulation Manufacturers Association • Foodservice Packaging Institute (FPI) (NAIMA) • Glass Packaging Institute (GPI) • Oregon Refuse & Recycling Association (ORRA) • Household and Commercial Products Association • The Recycling Partnership (HCPA) • RRS Community Based Organizations (CBOs) • The Arc of Portland • St. Vincent de Paul • Ground Score • Trash for Peace 34 Appendix E: Itemized Budgets by Program Year Preliminary Program Cost Estimate Ranges over 3 Years of Operations There are no updates to the program cost estimates for this plan submission. Upon completion of ORSOP, CAA will update its system cost estimates and detailed base fee schedule for the December program plan submission. CAA developed a range of preliminary program cost estimates to be published in the Program Plan. Presenting a range of anticipated program costs is reasonable given the absence of program data and uncertainty with estimates at this early stage. To inform these estimates, the CAA project team relied on best available data on covered material volumes, current understanding of future system needs and costs in advance of completing the Oregon Recycling System Optimization Project. Insights were also drawn from EPR programs in other jurisdictions. Given the high degree of uncertainty associated with these estimates, a conservative base case and high case scenario were developed. Base Case Pre-Program + 2025 FY2026 FY2027 Local Government Collection Services Expansion $53,900,000 $143,100,000 $158,900,000 Contamination Reduction Programming $13,100,000 $13,100,000 $13,100,000 Transportation Reimbursement $4,800,000 $12,600,000 $9,500,000 Others $1,100,000 $1,200,000 $1,200,000 Payments to CRPFs $25,300,000 $50,400,000 $76,600,000 PRO Materials Management (Depots) $33,900,000 $54,100,000 $56,800,000 REM Development and Verification $2,900,000 $3,200,000 $3,200,000 Special Material Investments incl. SIMs $7,750,000 $2,000,000 $2,000,000 Education and Outreach $10,400,000 $7,500,000 $7,600,000 Regulatory $8,150,000 $9,417,000 $15,600,000 PRO Management and Administration $11,800,000 $10,300,000 $11,050,000 Program Reserves $45,500,000 $27,300,000 $18,200,000 Total Budget $219,000,000 $335,000,000 $374,000,000 Table iii. Preliminary program plan cost estimates – base range. High Case Pre-Program + 2025 FY2026 FY2027 Local Government Collection Services Expansion $70,070,000 $186,030,000 $206,570,000 35 Contamination Reduction Programming $13,100,000 $13,100,000 $13,100,000 Transportation Reimbursement $6,240,000 $16,380,000 $12,350,000 Others $1,430,000 $1,560,000 $1,560,000 Payments to CRPFs $32,890,000 $65,520,000 $99,580,000 PRO Materials Management (Depots) $44,070,000 $70,330,000 $73,840,000 REM Development and Verification $3,770,000 $4,160,000 $4,160,000 Special Material Investments incl. SIMs $10,000,000 $2,600,000 $2,600,000 Education and Outreach $12,800,000 $9,750,000 $9,880,000 Regulatory $8,150,000 $10,871,000 $16,500,000 PRO Management and Administration $14,200,000 $13,390,000 $14,430,000 Program Reserves $70,000,000 $42,000,000 $28,000,000 Total Budget $287,000,000 $436,000,000 $483,000,000 Table iv. Preliminary program plan cost estimates – upper range. Description of Budget Category Estimate Methodology Local Government Collection Services Expansion Local government collection services expansion covers the anticipated costs of funding local government recycling service expansions and improvements. This includes capital requirements for on-route service, depot and reload facility upgrades and expansions. It also includes eligible operating costs relating to existing local government depot operations and reload facilities. Data included in the 2023 Needs Assessment was not detailed enough to support accurate estimates of local government service expansion requests. For example, the number of new trucks associated with local government information in the Assessment could be interpreted to be as high as 1,500. Based on assumptions regarding an increase in material volumes in many jurisdictions and the anticipated expansion of on-route services in select jurisdictions, CAA assumed a requirement for approximately 200 trucks with a price of $400,000 per vehicle. With respect to depots and recycle reload facilities, CAA assumed both an expansion of existing facilities and the sourcing of approximately 30 new facilities over the course of the first Program Plan. CAA capital asset costs have not been amortized in these estimates. Some estimates are fixed because they depend on known parameters with known allocations. In other cases, the calculations are based on assumptions subject to significant variability based on interpretation or unknown parameters. The base case reflects a preliminary estimate of costs based on current information while the high estimate represents the margin of error that exists given the lack of information available. Based on existing information, there is a high level of uncertainty regarding these estimates, the eligibility of various local government funding requests and the timing of expenditures. CAA will be in a substantially improved position to estimate these costs once the Oregon Recycling System Optimization Project is complete. Contamination Reduction Programming 36 CAA has assumed a funding requirement equivalent to the $3 per capita cap created under the RMA. This includes contamination measurement such as periodic assessments and evaluations. Transportation Reimbursement Based on preliminary information, CAA has assumed that local governments and their service providers will transport approximately 128,000 tons of material that is eligible for transportation subsidies on an annual basis. Transportation cost estimates were based on industry hauling rates published by the American Transportation Research Institute (ATRI) for the year 2023. These rates were applied to distances between wastesheds and the closest commingled recycling processing facility available for processing (where transportation distances were greater than 50 miles). CAA also factored some facility handling costs into this estimate. Others Others represents an initial estimate of the program to cover the price premium to ensure post-consumer content in roll carts. Payments to CRPFs These costs relate to anticipated CAA payments to CRPFs (that are reflective of commodity revenues), compensate them for receiving and sorting covered materials, disposing of contaminants and residue, managing material cost fluctuations and implementing facility improvements required to meet CRPF RMA requirements. Estimates of CAA payments to CRPFs were largely based on volume estimates and fee rates for the Processor Commodity Risk Fee (PCRF) and the Contamination Management Fee included in Study Results Processor Commodity Risk Fee Contamination Management Fee: March 7, 2024 Final Report by Crowe. These estimates will be revised once RMA rules related to the calculation of these amounts are finalized. PRO Materials Management These costs relate to CAA’s obligation to establish a depot system to manage PRO materials from collection to recycling. These costs reflect the estimated funding requirements based on Oregon system needs to operate PRO depots, set up collection events and activate curbside collection of certain PRO materials. The exact number of collection points required to meet the RMA convenience standards will be determined through the program development process. This may result in additional required collection points to meet DEQ standards. In developing this preliminary estimate, CAA assumed that approximately 85% of existing depot locations would be interested in operating as a collection partner for PRO Recycling Acceptance List materials. CAA also assumed that certain PRO Recycling Acceptance List materials would continue to be collected through curbside collection programs. Depot cost estimates were based on CAA cost modeling informed by the costs of managing similar materials through depots in other jurisdictions and cross-referenced with material volume and cost estimate information from Overview of Scenario Modeling: Oregon Plastic Pollution and Recycling Modernization Act. There is high level of uncertainty with respect to these cost estimates and the number of existing depots that will actually choose to partner with CAA in collecting PRO acceptance list materials. CAA will be in a significantly improved position to estimate these costs once the Oregon Recycling System Optimization Project is completed. 37 REM Development and Verification REM development and verification costs were budgeted based on an estimate of the number of audits to be conducted during the course of the program (~200-250) along with required REM infrastructure and potential costs associated with CAA actions taken to address REM compliance. Individual audits were estimated at $10,000 per audit, confirmed by two standard developers using a third-party verification body to undertake audits. The estimated number of audits was determined by listing all potential buyers of different commodities. REM development and verification costs were estimated separately for USCL and PRO Recycling Acceptance List materials. Special Materials Investments including SIMs These costs relate to CAA estimates of investments (research, trials, studies, etc.) earmarked to improve the recycling of SIMs and other materials. CAA has identified 11 materials that are candidates for investments and their associated costs of initial studies and field trials. PET thermoforms and glass are two high focus materials at present. This preliminary estimate may be adjusted as further outreach with producers and other stakeholders focuses on potential recycling changes for additional covered product materials. 38 Education and Outreach These costs represent CAA’s estimates of the cost to the deliver the RMA mandated statewide education and outreach program to support local government communications activity related to the collection of USCL materials as well as driving awareness among residents about the acceptance of PRO materials at PRO depots. The budget was developed with The Recycling Partnership (TRP), which has extensive experience in the design and delivery of recycling communications. Estimates include research, creative development and distribution of materials as well as multilingual translations. On average, the proposal costs close to $2 per capita. Regulatory Regulatory costs include the Program Plan review fee, annual administrative fees payable to DEQ and potential CAA contributions to the Waste Prevention and Reuse Fund. As per ORS 459A.941, CAA’s initial estimate has assumed annual contributions equivalent to 10% of its annual expenditures based on a rolling three-year average, starting in 2026. These estimates will be revised once RMA rules related to the calculation of these amounts are finalized. PRO Management and Administration These estimates reflect CAA’s initial estimate of PRO administration and operational costs in Oregon necessary to administer various RMA programs. This includes Oregon PRO office expenses, staffing, overhead, and services support received from National CAA. This includes pre-program start-up and program development costs. These costs were reviewed by a third-party public accounting firm. Program Reserves Program reserves estimates were established based on working capital and risk mitigation needs of the program, guided by CAA finance policy. The proposed program reserves targets reflect six months of “variable” operating expenses under steady-state program operations (assume 2027). A portion of fees collected will contribute to the accumulation of the reserves target. 39 Appendix F: PRO Depot Lists and Coverage The separate appendix list of existing depots (Tab 1 of Appendix F Excel) was used to inform the mapping and convenience standards efforts to inform the PRO Recycling Acceptance List section of this Plan. This list makes no assumptions about facilities’ willingness to partner with CAA as no formal negotiations have taken place. However, initial discussions with some existing depot operators have generally been encouraging. CAA has also been maintaining a list of “back-up” locations which it plans to use as necessary to supplement provision in areas where convenience standards may otherwise not be met, including suitably-sized hauler yards and facilities run by other organizations CAA has informally approached, such as Habitat for Humanity Restore. Tab 2 and 3 of Appendix F Excel represent the distribution of the collection points modeled for the Program Plan (by state and county, and by city). It includes all collection points, including special events and the provision of curbside collection in certain areas. The site locations and quantity are subject to change based on negotiations with local governments. 40 41 42 43 44 45 46 47 48 Appendix G: Detailed Fee-Setting Methodology (confidential) Appendix G is confidential and has been shared with DEQ separately. 49 Appendix H: CAA Articles of Incorporation 50 51 52 53 54 55 56 57 58 59 60 Appendix I: 501(c)3 Letter of Determination 61 62 63 Appendix J: Proof of Registration as a Charitable Organization 64 65 Appendix K: Proof of Registration – Foreign Corporation 66 67 Appendix L: CAA Revised Bylaws 68 69 70 71 72 73 74 75 76 circularactionalliance.org Appendix M: Updated Program Implementation Timelines 77 circularactionalliance.org 78 circularactionalliance.org 79 circularactionalliance.org 80 circularactionalliance.org 81 circularactionalliance.org 82 circularactionalliance.org 83 circularactionalliance.org 84 circularactionalliance.org 85 circularactionalliance.org 86 circularactionalliance.org 87 circularactionalliance.org 88 circularactionalliance.org 89 circularactionalliance.org 90 circularactionalliance.org 91 circularactionalliance.org 92 circularactionalliance.org 93 circularactionalliance.org 94 circularactionalliance.org 95 circularactionalliance.org 96 circularactionalliance.org 97 circularactionalliance.org 98 circularactionalliance.org 99 circularactionalliance.org 100 circularactionalliance.org 101 circularactionalliance.org 102 circularactionalliance.org 103 circularactionalliance.org 104 circularactionalliance.org 105 circularactionalliance.org 106 circularactionalliance.org 107 circularactionalliance.org 108 circularactionalliance.org 109 circularactionalliance.org 110 circularactionalliance.org 111 circularactionalliance.org 112 circularactionalliance.org 113 circularactionalliance.org Appendix N: Response to Oregon Recycling System Advisory Council Feedback DEPOTS Recycling Council Comment How was comment addressed? a. More detail and coordination is needed between DEQ and CAA on permit/site requirements needed for CBO’s and other non-profit partners to actively engage in exploring options for To be considered in December submission of program plan. collection of PRO depot listed materials b. Update the depot list in Appendix F to show who has agreed to collaborate with PRO, as well as those who have declined. To be considered in December submission of program plan. c. Provide guidance on how they intend to report back over time re: transparency in contracting (i.e., working with CBOs, what To be considered in December submission of program plan. materials are being accepted, equitable payments, etc.). d. Include additional info about how it will consider the overhead costs (e.g., training requirements, onsite and desk audits, etc.) associated with providing depot or other collection To be considered in December submission of program plan. services for host organizations. e. Verify how they are calculating the “convenience standard” with respect to depots and on- route/curbside collection of To be considered in December submission of program plan. materials. f. Update the temporary variance from convenience standards to take into account rural and urban differentiation. To be considered in December submission of program plan. g. Regarding enhanced convenience to underserved populations, provide more detail and state an actual commitment to one of To be considered in December submission of program plan. the options proposed. h. More detail on prospective collaborations with local community-based organizations, women and minority-owned To be considered in December submission of program plan. businesses and tribal nations. i. Regarding alternative programs being proposed to substitute for convenience standards, provide the necessary supporting information to meet requirements listed under OAR 340- 090- To be considered in December submission of program plan. 0640(6)(a)-(c). Analysis of how the alternative compliance approach impacts collection rates is not provided. V2 of the plan should also address the suitability of different PRO materials for 114 curbside collection. j. Though commercial businesses may have been thought of when establishing the options/approach for PRO depot materials, it’s not clearly stated. In fact, the subcommittee feels To be considered in December submission of program plan. like access for commercial generators was not addressed. k. Consider additional support for onsite visits (1/yr or more) with a midyear check-in or desk audit as a phase-in to build relationships between PRO and communities (especially with service providers and depot staffers/operators). Factor in the To be considered in December submission of program plan. additional costs to service providers and depots for this work (additional costs for operations and relationship to PRO costs). l. Provide details about how CAA will handle non-covered products that may show up at depots as contamination but could have some marketable value to it, such as a plastic kids Outside scope of compliance, but will be indirectly addressed in pool. Also address how CAA will handle/dispose of education materials. contamination in a timely manner. m. Provide more details/transparency in how collection points will be compensated (collection points generally, not just their staff), including anticipated wage scales for staffing To be considered in December submission of program plan. compensation, any compensation per amount of materials collected, and overhead. n. Provide more detail as to how certain materials could play a unique role in reuse/refill effort (e.g., certain recovered glass wine bottles ending up at Revino, pressurized 1 pound propane Outside scope of compliance. canisters, etc.). o. Provide details about contingency plans related to depots and collection events, to ensure success of collection of materials changing from a current local government recycling acceptance list one list to the PRO Recycling Acceptance List (e.g., shredded To be considered in December submission of program plan. paper, aluminum foil and foil-pressed products and aerosol containers in the metro area). p. Provide more detail about collection and the safe handling of pressurized canisters (1 pound propane canisters). To be considered in December submission of program plan. q. Page 46: Table related to HHW – Remove Washington County as permitted HHW site (no such site); clarify the population figures and what they represent within the table – numbers shared for events do not seem to align with population numbers To be considered in December submission of program plan. – add a new column for number of HHW events, and indication if the “event” is a one-time activity or a permanent facility for HHW collections. r. Strong support to maintain current infrastructure and ensure that service does not only go curbside/on-route, which does not serve many people without permanent addresses and other To be considered in December submission of program plan. currently underserved community sectors. 115 s. What does the community engagement process look like when the PRO reaches out to tribal nations? Will there be a tribal liaison? Recommendation for close consideration about how to connect to and work with tribal nations, in consultation with DEQ and other Oregon government entities with tribal To be considered in December submission of program plan. government engagement experience. i. Compensation for tribal nations is not necessarily reflected in RMA, recommendation for elements of compensation for tribal nations be considered. t. Clarification needed around contracting process for current depots, and transparency in those contracts to ensure equitable To be considered in December submission of program plan. rates and information sharing among depots. u. Acknowledgement of wage structure for these staff needing to be reflective of the physical difficulty of the jobs, alignment To be considered in December submission of program plan. with CRPF living wage principles encouraged. v. PROs to report annual on the income versus expenses of their depots and related operations to collect PRO materials, and also to report on the distribution of economic opportunity (subcontracting) – such as, which organizations/businesses are To be considered in December submission of program plan. subcontracted, how they do or don’t meet equity goals, and what their rates are (payment/amount of materials processed/hours of operation). EDUCATION & OUTREACH Recycling Council Comment How was comment addressed? a. Consider reuse and reduce messaging in communication. Outside scope of compliance. b. Clarify the role of CBOs in the delivery of education and outreach services, and specify the compensation that will be To be considered for future program plans. provided for CBO engagement. c. Additional detail would be helpful on the intended change management approach, how to keep CBOs and others informed and excited about the projected system changes and supporting Outside scope of compliance. materials. d. Continue improving translation and transcreation into multiple languages, and provide an avenue for folks to request Accepted. materials in specific languages. e. Ensure materials align with Opportunity to Recycle requirements for local governments to reduce duplication and Accepted. community member confusion. f. Provide further metrics to understand how success will be tracked, measured and reported in the annual report and to the Recycling Council. DEQ’s recent contamination report can be set To be considered for future program plans. as a baseline. g. Distinguish marketing, paid/earned media from education and Outside scope of compliance. 116 outreach, and who is leading in these respective areas. h. Provide community engagement and culturally responsive strategy, and how The Recycling Partnership will work with local governments and service providers to ensure materials get to To be considered for future program plans. the right communities and photos reflect community (not talent models in staged homes). i. Maintain neutral voice and branding in educational materials and media campaigns. We recommend campaigns and materials be non-branded, follow national color standards and Accepted. complement existing local materials that follow The Recycling Partnership’s methodology and behavior change best practices. j. Consider how community members keep up to date with list changes and develop materials that are easy to print on an office printer, so it is a positive experience and keeps it simple for users. Out community members have shared that recycling is To be considered for future program plans. confusing, and if the list changes every couple of years, that will add to the confusion. k. Consider how messages are communicated in different parts of the state at different stages. For example, Eastern Oregon will have new items added to their recycling bins whereas the Portland area will have items removed, and there will be a transition to meet collection points. Public outreach/engagement should begin in February 2025 and ought to focus broadly on the RMA’s many benefits to Oregonians Accepted. (increased resiliency of our recycling system, increased access for all Oregonians and universal collection lists in all communities of all sizes across the state, decrease in adverse impacts to environment and public health by ensuring responsible end markets - both domestic and international). PRODUCER FEES Recycling Council Comment How was comment addressed? a. More information is needed to fully assess whether or not the requirement for base rates being set so materials do not cross- Accepted. subsidize each other is met. b. Prioritize the development of the eco-modulation framework and provide the statutorily required level of specificity and data To be considered for future program plans. in the plan. RESPONSIBLE END MARKETS Recycling Council Comment How was comment addressed? a. A verification standard needs to be created that fully addresses Oregon’s four-element “responsible” definition. Using To be considered in a program plan correction. the existing approval of end markets by other PROs for variances may not ensure that a market meets Oregon’s 117 “responsible” bar (page 76). The metrics should include operational guidelines and sideboards that are developed from an equity-based perspective. b. More clarity is needed on how different parties will work together to provide desired transparency - for example, CAA could illustrate how the proposal to implement single track-and- Accepted. trace will intersect with the CRPFs’ joint obligation to ensure that materials go to responsible end markets. c. On page 76, add examples of types of non-conformance (e.g. documentation error vs waste is stored outside and freely entering the environment etc.) that would fall into each of the three non-conformance categories (i.e., minor, major, disqualifying). Explain how the approach to non-conformance Accepted. will take environmental performance of domestic markets into account with respect to key US environmental laws (e.g. Clean Water and Air Acts). Explain how a broker repeatedly sending materials to non-compliant markets would be addressed. d. Provide a benchmarking of CAA’s detailed verification standard against other standards pertinent to the temporary variance requests #1 and 2 on pages 76-77 (CAA proposes to count verifications/certifications by other parties–PROs To be considered in a program plan correction. operating in other jurisdictions and third-party certifications– toward a facility meeting the “responsible” standard). e. Regarding the random bale auditing proposal on page 82, the plan could clarify that trackers containing lithium Ion batteries *Accepted. will not be used at the curb due to fire risk. f. Page 75: Replace “environmental compliance” with “environmental soundness” (i.e., environmental performance of the facilities should be measured, not just compliance, in Accepted. accordance with the “responsible” definition in rule at OAR 340- 090-0670(2)(b)). g. Support for local and PNW markets as new development; materials that are limited in their end markets and ability to encourage more local economic development where possible Accepted. (focus area for new market development) h. Equity-related concern regarding the qualitative impacts of increased compliance costs and unintended consequences for markets - may see depressive impacts on markets and producers or disincentive to use recycled materials (displacing with virgin Outside the scope of compliance. materials), general awareness of trade-offs for compliance in global end markets. 118 SYSTEM EXPANSION Recycling Council Comment How was comment addressed? A. Prioritization of system expansion requests a. Concern around equity relating to prioritization of system expansion requests. Smaller communities may not have the resources to even engage and provide the needed details to finalize system expansion agreements. Will they receive assistance? b. Recommendation: The prioritization in rule may not be completely sufficient. Priority level #2 includes a very large To be considered in December submission of program plan. population, which makes it difficult to determine criteria to help prioritize within that priority level (ex: Lane County falls into multiple priority levels) (Page 23). The subcommittee recommends suggest that in version 2 CAA lay out a matrix of which projects and programs fall into each priority group. c. More details needed on the intent and plan for maximizing use of existing infrastructure, and availability of efficiencies across wastesheds (page 24). B. Approach to dispute resolution a. More details needed on the stakeholder/mediation workgroup that may work on resolution dispute, clarification on whether that group will provide general direction or mediate specific disputes, and reminder to involve all To be considered in December submission of program plan. affected parties in the membership of that workgroup. b. Details must be provided in the next Plan proposal related to criteria or protocols for the operations of the dispute resolution process and workgroup. C. Transportation reimbursement a. More info is needed about how the pre-approval process will work and assurance that it will not result in delays. b. More detail is needed around calculation of the standard fee i. Consideration: Is a calculation better based on a standard mileage fee versus one that has a zoned To be considered in December submission of program plan. approach based on geographic differentiation for the costs incurred for transportation types? Additional considerations may include time of travel as a factor of the standard rate. c. No clear guidance on when baling would be allowed – noted because baling of materials hampers sorting and reduces recovery. How will CAA limit/disincentivize baling? (Page 30) D. Potential additional funding for protection of ratepayers (page 33): CAA proposes providing an annual summary of funding. What data will be provided to the local governments or To be considered in December submission of program plan. their service providers, and at what level of specificity? The subcommittee advises CAA to provide more details in the next 119 plan on what data will be provided, and at what level, to the local governments and service providers for this element. E. Funding for recycled-content roll carts: Can CAA assist with coordination to leverage economy-of-scale contracting that benefits all parties needing to access new carts? This approach benefits cart producers, service providers and CAA and ensures compliance with the related requirements. To be considered in December submission of program plan. a. Consideration: In communities where color choice of recycling containers is less specific or less established, consider recommending a standard color for future purchases. F. Contamination reduction program (page 30): Streamline administration of that program; Council support to have a non- punitive approach that is not based on service removal or fines for individuals/households; use a strengths-based approach to To be considered in December submission of program plan. better support and elevate multifamily sector when reducing contamination. 120 UNIFORM STATEWIDE COLLECTION LIST ON-RAMP Recycling Council Comment How was comment addressed? A. Provide a more descriptive narrative of CAA’s vision for the on-ramping of new materials to the USCL in the short- and long- term. This should include: i. An overview of how SIMs and pilot programs may contribute to on-ramping of new USCL materials, including At the request of DEQ the specifics of on-ramping certain PRO Depot materials materials will be detailed in future program plan amendments. ii. How the program plan will contribute to meeting collection targets for plastics and other materials, iii. And the general sequencing, timeline or process flow for these activities. B. Reference the outreach and education processes specific to the SIMs, USCL and PRO lists as cross-references to ensure Accepted. clarity and consistency across sections C. More detail needed for the proposed trial for commingled collection of non-USCL materials (polycoated paper packaging Outside of scope of compliance. and single-use cups, pages 66-68) D. More detail needed for the preliminary plastic recycling rate projections (pages 68-72) Accepted. E. Either delete or clarify the use of the term “transparent” related to blue and green PET bottles (page 60) – support for the Accepted. addition, but clarification needed for the specific wording. F. Provide information on environmental factors from a life cycle perspective on shipping steel can bales containing spiral wound Accepted. containers to markets outside Oregon (pages 61-62) G. More detail needed on polycoated gable-top cartons and aseptic cartons (pages 62-63) Accepted. 121 EQUITY Recycling Council Comment How was comment addressed? A. Include a consolidated list of intended partners and community-based organizations, and the types of organizations CAA intends to prioritize in subcontracting throughout the To be considered for future program plans. implementation of the Plan, specifically included in the equity section, rather than cross- referenced throughout the Plan. B. Request permission from specific CBOs/organizations before including them as contacts/partners in subsequent plans. Accepted. C. Include more concrete values, definitions and measures/metrics to track success over time, into the next To be considered for future program plans. version of the Plan. D. Clarity needed: Are there other solutions when it comes to enhanced collection to be considered? E.g., is it reasonable to recommend that the PRO financially support more electric trucks/fleet electrification for service providers, instead of Outside of scope of compliance. conventionally fueled vehicles, since there will be heightened traffic in some areas due to the increase in service which could have environmental impacts? E. Clarity needed: What are the resources and considerations to provide enhanced service to multifamily homes and commercial Accepted. entities? F. Clarity needed: How is CAA measuring who gets contracts for depots and what are the calculations for reasonable costs? Recommend a per ton material rate, in addition to standard Accepted. base rate for staffing, being paid for additional materials brought in. G. Clarity needed: What are the intentions of having alternative compliance, in lieu of depot system, and will on-route/curbside provide sufficient equitable access? If the total number of available depots are reduced due to including on-route and Accepted. event-based recycling opportunities, how does that affect the overall convenience standard, and will currently underserved populations benefit from those changes or be further harmed? H. Clarity needed: What materials on the PRO list will be collected on-route (detail needed) and the transition to USCL. To be considered for future program plans. I. Developing, and increasing, capacity of CBOs and new businesses is a strong economic development opportunity, recommend the articulation of targeted goals to be achieved in Outside of scope of compliance. the program plan (e.g. % of depots operated by CBOs and businesses of color). J. Certification as COBID is a very significant process and may be a potential barrier (business structure requirements may Outside of scope of compliance. prohibit the certification, etc.) - consider alternative pathways that provide same outcome and intent without certification 122 hurdles, especially for new and emerging businesses. K. Broader engagement is needed with additional sectors and organizations: disability/rights communities; rural communities; culturally-specific communities and organizations; organizations that represent the communities disproportionately affected by the economic and environmental impacts of packaging and covered products and other materials in recycling system (focus Accepted. on economic opportunities and provisions of service) – list included on page 8 of the Plan does not meet the objectives/goals of meaningful engagement and equity approach. L. Specificity needed on the requested engagement, and provided compensation, for community members and organizations when consultation is requested by CAA or its Accepted. contracted entities. M. Equity and sustainability: What does the provision of the materials (printing, re-printing, etc.) mean for a sustainability solution - balancing the language access with updates and Accepted. information being current and costs for printing and distribution by local governments. N. Roll carts: Recommend color standardization whenever possible for types/classifications of collection bins/roll carts Accepted. (page 32). O. Add specific shared definitions of equity for Program Plan in Appendix A: Definitions, page 30. Below are a few examples. a. Equity (Oregon Health Authority): When people are not disadvantaged by race, ethnicity, language, disability, age, gender identity, sexual orientation, social class, or other socially determined circumstances, and can reach their full health potential and well-being. i. State of Oregon definition of equity (2021): Equity acknowledges that not all people, or all communities, are starting from the same place due to historic and current systems of oppression. Equity is the effort to provide different levels of support based on an individual’s or group’s needs in order to achieve fairness in outcomes. Equity actionably empowers communities most impacted by systemic oppression and Outside of scope of compliance. requires the redistribution of resources, power, and opportunity to those communities. a. Historically marginalized (Metro): Groups who have been denied access and/or suffered past institutional discrimination in the United States. b. Inclusion (Metro): The degree to which diverse individuals are able to participate fully in the decision-making process within an organization or group. While a truly “inclusive” group is necessarily diverse, a “diverse” group may or may not be “inclusive.” c. Targeted universalism (Metro): Addressing the disparities that affect the most disadvantaged will generate solutions to address most of the needs of other vulnerable groups 123 d. Community engagement (Metro): Meaningful community engagement requires transparent and trusting relationships that guide the planning of all phases of the cycle of engagement, including what happens before and after staff engage with community members. Community engagement must be approached holistically, with equal focus given to what is happening when staff are not collecting input as when they are. It is best understood as a cyclical and iterative process that will change based on relationships and community feedback and will shape future engagement opportunities. 124 Appendix O: Legal Notices Below please find two separate documents. • The first, denoted by footnote 5, is a letter addressed to CAA from the American Forest & Paper Association (AF&PA) outlining their concerns with battery powered tracking devices in paper bales. • The third, denoted by footnote 6, is a letter addressed to CAA from the Association of Plastic Recyclers (APR) outlining their concerns about the use of battery-powered trackers from compliance with responsible end market regulations. 125 5 5 Letter provided by the American Forest & Paper Association (AF&PA) 126 127 6 6 Letter provided by the Association of Plastic Recyclers (APR) 128 129 List of Updates in Second Version of Circular Action Alliance Program Plan The following list identifies the areas in which CAA has made substantive changes from the first edition of the Oregon Program Plan (submitted in March 2024). These content updates are in addition to numerous minor grammatical and formatting changes made within the document. Goals of the Program  Added context describing CAA’s goal-setting strategy (p. 10).  Modified Goal 1 to clarify that impact reductions would be determined using a life cycle evaluation approach (p. 10).  Added details to the “Outcomes/Indications of Success” and “Key Metrics” sections in the tables associated with the four program goals (pp. 10-13). About Circular Action Alliance  Added specifics on CAA’s Oregon staffing plans (p. 16).  Modified CAA’s Oregon market share estimate (p. 17). Proposed Additions to the USCL  Added specifics to the “Performance Against ORS Criteria” table for transparent blue and green PET bottles (pp. 55-56). Proposed Future Additions to the USCL Through Program Plan Amendments  Added this section to the Program Plan and moved PET thermoform information here (pp. 57-60).  Modified various areas of the PET thermoform discussion (pp. 57-59).  Removed spiral wound containers from the list of materials being considered for addition to the USCL at this time (p. 60). 1 Specifically Identified Materials on the USCL  Added information on how SIMs will be integrated into education and outreach strategy (p. 60).  Added details to the strategy for nursery packaging education and outreach; modified section on processing improvements for this material (pp. 61-62). Specifically Identified Materials on the PRO Acceptance List  Modified section on steel aerosol containers, indicating that CAA’s strategy focuses on management of only empty aerosol products (p. 63).  Added verbiage that signals CAA’s intention to on-ramp empty aerosols to the USCL via a future Program Plan amendment (p. 63).  Modified section focused on aluminum foil and pressed aluminum products to clarify education and outreach strategy (pp. 63-64).  Added education and outreach context to the sections focused on shredded paper and glass (pp. 64-65).  Added a section titled “Variance Requests,” which offers details on CAA’s planned approach to pressurized cylinders and expanded polystyrene (pp. 65-66). Initial Plastics Recycling Rate Projections  Modified the rate methodology and calculations so that they are now based on data provided by Oregon DEQ (pp. 68-71). Ensuring Responsible End Markets  Added companies to the list example end markets (p. 72).  Added extensive details on the development of a REM verification standard (pp. 72-83).  Modified the sections detailing CAA’s approach to investigating and addressing non- compliance in the REM process (pp. 83-85).  Added several conditions to the section on temporary variances in verification (pp. 85-87).  Modified the section on random bale tracking to detail concerns around battery-powered tracking devices (pp. 89-90).  Added details to the discussion of how CAA will support market development initiatives (pp. 90-92).  Added elements to the section on REM development guiding principles (pp. 92-93). 2 Upholding Oregon’s Materials Management Hierarchy  Added details on CAA’s general approach to upholding the materials management hierarchy (p. 93).  Modified the section focused on glass (p. 94).  Added a section focused on “all plastics” (p. 94). Education and Outreach  Modified the goals for the education and outreach initiative (p. 95).  Modified details pertaining to the statewide quantitative survey and qualitative interviews (p. 96).  Added languages to the transcreation and translation plan (p. 96).  Modified the lists of recommendations for the depot/drop-off and commercial business realms (pp. 99-100).  Added details to the section on educational materials for local governments and service providers (pp. 100-101).  Added details to the description of the statewide promotional campaign (pp. 102-104).  Added details to the section on engagement with community-based organizations (p. 105).  Modified the schedule for development and deployment of educational materials (pp. 106-109). Financing  Modified the reporting categories section, outlining a product speciation list that includes 60 materials (pp. 111-113).  Modified the fee-setting guiding principles (pp. 113-114).  Modified the base fee schedule ranges (p. 117).  Modified the section on flat fees (pp. 117-118).  Added details to the description of the proposed graduated fee structure, outlining “Bonus A” and “Bonus B” frameworks (pp. 121-126).  Added sections on the consideration of other ecomodulation factors and the potential future use of factors (pp. 126-128).  Added details to the section on program reserves and contingencies (pp. 130-131). Equity 3  Added elements to the list of factors that may influence equity in Oregon’s materials management system (p. 132).  Added details to the section on equity in the PRO depot network (p. 133).  Added details to the section on equity in PRO administration (p. 134). CAA Management and Compliance  Modified the primary contact (p. 135).  Added details to the section focused on producers (pp. 137-139).  Added details to the sections on retention of information and closure plan (pp. 148-150). Certification and Attestation  Modified the contact information (p. 151). Appendices  Added several items to the Definitions appendix (Appendix A)  Modified the list of member producers and market share (Appendix B)  Modified the charts outlining CAA’s organizational structure (Appendix C)  Modified the stakeholder engagement lists (Appendix D)  Modified the description of fee-setting methodology (Appendix G, confidential)  Updated the program implementation timelines (Appendix M)  Added an appendix detailing responses to recommendations from the Oregon Recycling System Advisory Council (Appendix N)  Added a Legal Notices appendix (Appendix O) 4.

3. U.S. Changes its Stance Preparing for INC-5 Meeting on Global Plastics Treaty 

What is the INC-5 Meeting?

The United Nations Intergovernmental Negotiating Committee on Plastic Pollution (INC) meeting is  dedicated to developing a legally binding international treaty to address plastic pollution across its entire lifecycle, from production to disposal. The committee’s fifth meeting, INC-5, is scheduled for November 25 – December 1, 2024, in Busan, South Korea. Representatives from 200 countries will attend.

At INC-5, the committee hopes to finalize the treaty language, however negotiations might continue into next year.

How has the U.S. prepared for the meeting? What are the implications for packaging?

In preparation for the November meeting, the U.S. has:

  • Shifted its position from supporting voluntary nation-by-nation compliance to now recognizing a need to regulate plastics over their entire life cycle
  • Dropped opposition to worldwide pollution reduction targets
  • Acknowledged a need to limit production or use of certain polymers

Amid these changes, Packaging Digest outlined five critical considerations for packaging and consumer goods. We recommend reading the full considerations here, and they are:

  1. Designing for reuse, recycling, and circularity  
  2. Fulfilling EPR responsibilities and requirements  
  3. Managing and ultimately eliminating use of “chemicals of concern”
  4. Transparency, accuracy, and reportability of data, not just within company walls but across the packaging supply chain 
  5. Traceability of materials and product content 

What’s next for the treaty?

Once the treaty language is finalized (either this winter or next year), the language will be sent to nations for ratification. Experts are saying that potential ratification may be influenced by the 2024 U.S. presidential election, increasing the possibility of continued negotiations into 2025.

Where can I keep up with treaty developments? 

To keep up with the developments and their implications for packaging, we recommend reading up on coverage or following Packaging Dive, Packaging World, or Packaging Digest.

October packaging policy roundup

1. CalRecycle Releases Latest Round of Edits to EPR Rulemaking

What’s the latest on California’s EPR legislation?

Right now, California’s Extended Producer Responsibility (EPR) law is in the middle of the regulatory rulemaking process. CalRecycle, the state agency tasked with overseeing EPR, recently released its latest edits to the state’s EPR rules. Stakeholders can submit comments until the comment period ends on November 4.

What’s in California’s latest round of EPR rules?

The edits to California’s EPR legislation are broad in scope and scale. The newest regulations contain more than 200 pages of updates, removals, and additions, and they cover everything from covered products to end market identification. You can read them here.

Notably, CalRecycle consulted SPC’s Guidance for Reusable PackagingGuidance for Reusable Packaging Understanding goals and assumptions in order to design a more successful reusable packaging program 2022 About GreenBlue is an environmental nonprofit dedicated to the sustainable use of materials in society. We bring together a diversity of stakeholders to encourage innovation and best practices to promote the creation of a more sustainable materials economy. The Sustainable Packaging Coalition (SPC) is a membership-based collaborative that believes in the power of industry to make packaging more sustainable. We are the leading voice on sustainable packaging and we are passionate about the creation of packaging that is good for people + the environment. Our mission is to bring packaging sustainability stakeholders together to catalyze actionable improvements to packaging systems and lend an authoritative voice on issues related to packaging sustainability. The Sustainable Packaging Coalition is a trademark project of GreenBlue Org. Lead Author Olga Kachook, GreenBlue Editors Reviewers Nina Goodrich, GreenBlue Caren McNamara, Conscious Container Karen Hagerman, GreenBlue Chris Macfarlane, Starbucks Alyssa Harben, GreenBlue Georgia Sherwin, Closed Loop Partners Lucy Pierce, GreenBlue Jennifer McCracken, HAVI Kelly Cramer, formerly of Mike Newman, Returnity GreenBlue Tim Debus, Reusable Packaging Association Guidance for Reusable Packaging | 1 Purpose of this Document 3 Executive Summary 5 Part 1. Understanding Reusable Packaging 9 Reuse in the context of a product’s life cycle 12 Single-use packaging versus reusable packaging 14 Theoretical reuse versus reuse in practice 15 Unpacking Industry Assumptions about Reuse 17 Assumption: Reuse results in a lower environmental footprint 18 Assumption: Reuse displaces single-use packaging and eliminates plastic pollution 19 Assumption: Reuse addresses excessive consumption 20 Assumption: Reuse is motivated primarily by sustainability considerations 23 Assumption: It is feasible to return to traditional systems of reuse like the milkman model 25 Assumption: Reuse shouldn’t require significant behavior change 26 Establishing Goals for Reuse 29 What is the goal of reusable packaging? 29 Part 2. Designing Reusable Packaging 31 Reuse for various product categories 31 Customizing versus standardizing reusable packaging systems 33 Point-to-Point versus Hub-and-Spoke 35 Facilitating reuse in practice 37 Measuring success 39 Return and refill rates 40 Costs 42 Sales data 43 Best practices: how to have a successful program 43 Questions to ask about reusable packaging 45 Reuse Scoping and R&D 45 Program Set-Up and Consumer Participation 46 Material Sourcing 47 Reverse Logistics 47 Disposal 48 Conclusion 49 Guidance for Reusable Packaging | 2 Purpose of this Document Reuse may be one of sustainable packaging’s most beloved yet misunderstood sustainability strategies. Although successful reusable packaging systems have existed for decades for beverage containers and in business-to-business contexts such as produce crates, in 2019 companies began to consider what it might look like to apply reuse more broadly to food service and consumer packaged goods, among many other categories. Companies as large as Unilever began to launch pilots and invest in reusable solutions, while startups introduced innovative business models and services. Reuse as a pathway for recovery of packaging was written into the New Plastics Economy Global Commitment, which has hundreds of signatories and is the foundation of many Plastics Pacts around the world. In 2020, the onset of the COVID-19 pandemic raised concerns about the safety of reusable packaging and called into question the likelihood that consumers would participate in these systems. Companies temporarily restricted refills and reusable food serviceware, and it took many months and campaigns by various NGOs and scientists to reestablish the safety of reuse. As the world has begun to reopen, reusable packaging is once again on the minds of brands and consumers alike. Reuse is an opportunity to create a package-product system that is better for the environment than single-use packaging, since source reduction to prevent waste is preferred over recycling to manage waste. The life cycle of any packaging involves sourcing raw materials, distributing the product to retailers or directly to consumers, use of the packaged product, and disposal or recovery. Reusable packaging limits the consumption of the raw materials, postpones the disposal phase, and can displace the need for large amounts of single-use packaging. This is one of the primary reasons reuse has received attention from brands, but as this document explores, it is not the only driver, and questions about reuse remain. Over the past several years, a number of guides, papers, and summaries of life cycle assessment research have been published on the topic of reusable packaging (see Reuse in the context of a product’s life cycle). While these resources offer fantastic examples of innovations in the space and outline recommendations for specific applications such as food serviceware, there is little guidance for the decision-making process around reusable packaging. Today, it is unclear how reusable packaging should be deployed at scale to make the product-packaging-use system more sustainable - is it a blanket solution for the linear economy? Or is it suitable only for niche applications? Guidance for Reusable Packaging | 3 Purpose of this Document For this reason, the Sustainable Packaging Coalition decided to formulate considerations for the success, applicability, and sustainability of reusable packaging systems. The purpose of this document is to: Synthesize different definitions of reusable packaging, including refillable and returnable packaging, and outline how it compares to single-use packaging Pose questions about the role of reusable packaging, including whether it effectively replaces single-use packaging, addresses overconsumption, or reduces the carbon footprint of products Consider how consumers interact with reusable packaging and the likelihood that it will be reused in practice Suggest important considerations for designing reusable packaging, including when reusable packaging makes the most sense Outline best practices for a successful reuse system and ways to measure success We at the Sustainable Packaging Coalition believe that if companies spend some time discussing these questions internally and with partners, reusable packaging systems will be more appropriately applied, more successfully deployed, and ultimately, serve as a more sustainable alternative to the single-use systems they replace. Guidance for Reusable Packaging | 4 Executive Summary The SPC defines reusable packaging as packaging that allows either the business or the consumer to put the same type of purchased product back into the original packaging, is designed to be returnable and/or refillable, and accomplishes a minimum number of reuses by being part of a system that enables reuse. Today, brands operate under a number of assumptions about what reusable packaging should look like, what sustainability goals it can achieve, and how it should be designed. Uncovering these assumptions can help ensure that reusable packaging is both more successful and more sustainable in the long run. This guidance document examines and questions some of the most common assumptions about reusable packaging: Assumption 1: Reuse results in a lower environmental footprint. Consider: The assumed environmental benefits of reuse are not guaranteed and depend on high return rates and reuse in practice. Assumption 2: Reuse displaces single-use packaging and eliminates plastic pollution. Consider: Today most reusable options are offered alongside and in addition to the single- use options. To prevent greenwashing and consumer confusion, it is important for brands to avoid presenting reusable packaging as the silver bullet to plastic pollution. Assumption 3: Reuse addresses excessive consumption. Consider: In many of the reusable packaging pilots and models on the market today, reuse is positioned as a way to alleviate some of the guilt consumers have historically had about the impacts of their purchasing and behavior. Simply changing the packaging does not address the underlying problems with the product or system. Assumption 4: Reuse is motivated primarily by sustainability considerations. Consider: There are other drivers that compel both consumers and businesses to turn to reusable packaging, such as lifestyle advantages, financial incentives, user experience, and marketing advantages. Assumption 5: It is feasible to return to traditional systems of reuse like the milkman model. Consider: Society has fundamentally changed since the heyday of the milkman model of the 1950s, and today’s reusable packaging must navigate a number of new behaviors and expectations that society has adopted since the milkman days. Reuse shouldn’t require significant behavior change. Consider: Reusable packaging, no matter how simple or convenient it is, will inherently require some behavior change, and if we hope to adequately address today’s environmental problems, both consumers and companies will need to do things differently than they have in the past. Guidance for Reusable Packaging | 5 Executive Summary With these assumptions unpacked and addressed, it is time to refocus on the true goal of reusable packaging - to reduce the environmental footprint of the package-product system. Companies should aim to identify when reusable packaging will be environmentally- preferable to single-use, and pursue innovation in those categories and formats. Part of this decision requires brands and retailers to realistically assess the likelihood that consumers will sustain their participation in reuse and refill offerings, and the ways in which behavior change and friction can be optimized to ensure the greater success of reuse. Brands should deploy reusable packaging in contexts where it is more likely to succeed. Reusable packaging may be a better fit for certain categories of product, such as: Items that are used in food service (e.g. beverage cups, takeout containers), are more likely to reach high levels of reuse in practice due to their pervasiveness Items that are bought frequently (e.g. personal care, home care, supplies for work environments), since they are consumed fairly quickly and have high levels of repeat purchasing Items purchased online that are returned often (e.g. clothes, footwear), since products are already being sent back by consumers when they don’t fit or match expectations Where purchasing a specific quantity of product is important and consumers express a desire to purchase less or more than the standard quantity sold Where the current packaging fails to adequately protect the product and there are chronically high loss or damage rates Where there is already a “closed loop system” of return in place, such as rentals Where there is a subscription model in place and used packaging can be collected during the delivery of the next order Packaging that is often stored in the open or on display (e.g. soap dispensers) and a more durable, “counter-worthy” design is important to the consumer Guidance for Reusable Packaging | 6 In these instances, a reusable packaging offering makes sense because it has a high likelihood of being reused in practice, capitalizes on existing reuse systems, meets consumer needs, or provides added value by helping prevent damage and/or waste. As brands design reusable packaging systems, it is necessary to consider the tradeoffs of customization vs. standardization. Customization refers to the process of designing reusable packaging that is visually or functionally distinct from competitors or other products in the category and is collected through a unique reverse logistics channel. Standardization refers to ways in which the reusable packaging may fit into existing recovery streams or may use one design across brands, platforms, or channels. Standardization often translates to a more economically viable logistics structure and cost-savings for stakeholders. The decision to customize or standardize can have direct implications for the adoption of reuse, and for reducing the environmental footprint of reusable packaging. Brands and retailers should also take some time to consider the logistics structure underlying their reuse model. According to a meta-analysis conducted by Reloop and Zero Waste Europe, one of the biggest sources of environmental impact for reusable packaging is the transportation phase, which includes both sending packaging to consumers and collecting it once it is empty. For this reason, the decisions around how to structure reverse logistics using either the point-to-point or a hub-and-spoke model play an important role in determining the environmental footprint of reusable packaging. When it comes to measuring success, it is important to apply rigor and data to understand whether reusable packaging is meeting the primary goal of reducing the environmental footprint of the package-product system. One of the best ways to do this is to analyze return and refill rates as an indicator of reuse in practice. This is different from metrics of theoretical reuse which many brands inadvertently focus on, such as how many uses reusable packaging is designed to withstand or when it would break even. Other metrics, such as costs and sales data, can also be used to understand how reusable packaging is performing, yet they have pros and cons to consider. Cost and sales data are practical, easily-quantifiable metrics that are important for establishing the business case for reusable packaging. However, they may reflect only short-term performance, rather than long-term adoption that translates into positive environmental impact. Guidance for Reusable Packaging | 7 Ultimately, the success of reusable packaging can be measured by three aspects of the package-product system: Long-term consumer Getting high return Lower environmental engagement rates in practice footprint Given the many considerations for reusable packaging, it’s clear that it is not a one-size-fits- all solution to replace all types and formats of single-use packaging. Rather, because reusable packaging requires more materials and transportation, its success from a sustainability standpoint hinges on high levels of reuse or refill in practice by engaged consumers. It may not be the right fit for every category of packaging, and the environmental impacts should be weighed against the impacts of single-use packaging. With more careful consideration of the “why” and “when” around reusable packaging, it will be possible to achieve a more successful and sustainable transition to reusable packaging. Guidance for Reusable Packaging | 8 Part 1. Understanding Reusable Packaging Before pursuing reusable packaging, it is important to first define reusability and the various related terms like “refillable” and “returnable”. Without clear parameters for what these words mean, companies may be inadvertently greenwashing their efforts or confusing consumers. For example, some brands have used the term “refillable” as a synonym for “reusable”, when in fact it is distinct. Other brands may call their packaging “reusable” even though it has not been intentionally designed for reuse, or may use a broader term like “reusable” when a more specific term like “returnable” would be more appropriate. Still other brands may note that their packaging can be “repurposed” or “up-cycled” for other uses. Definitions of reusable packaging have been put forth across a range of sources, from academic publications, to industry-facing reports, to marketing guidance. For example, the International Organization for Standardization (ISO) defines reuse in standard 18603:2013, and this definition has since been incorporated in the EU’s Packaging & Packaging Waste Directive. In the US, more comprehensive definitions of reusable packaging have been outlined in CA’s SB 1335 and proposed WA state legislation. The definitions below are offered as a synthesis of existing definitions while also aiming to incorporate other aspects of the circular economy such as material health. Reusable packaging is packaging that allows either the business or the consumer to put the same type of purchased product back into the original packaging, is designed to be returnable and/or refillable, is free of chemicals of concern, and accomplishes a minimum number of reuses by being part of a system that enables reuse. Type: A category of products. For example, liquid personal care products, which can be poured back into a durable bottle when it is empty. Designed to be: Reusability must be an intentional design choice on the part of the brand, rather than a consumer choosing to repurpose single-use packaging for other uses. Free of chemicals of concern: The material used should not contain harmful chemical, physical, biological, or radiological substances that will pose a threat to human health or the environment. Minimum number of reuses: While there is no single minimum number of reuses that is appropriate across all product categories, the carbon footprint of reuse is highly dependent on this metric. Achieving some minimum number of reuses in practice is vital for meeting the environmental goals of reusable packaging. System that enables reuse: This refers to supporting elements that encourage packaging to be successfully reused, refilled, and/or returned, such as refills, dispensers, collection programs, deposits, container tracking, apps, etc. Guidance for Reusable Packaging | 9 [Figure 1] Fig [1]. The term “reusable packaging” can apply to both primary and secondary/tertiary packaging, and each will have its own formats and logistics depending on whether the packaging is returnable and/or refillable There are two types of reusable packaging - refillable and returnable packaging. Refillable packaging is packaging that is designed to be owned and refilled by consumers with separately-purchased product or through dispenser systems. Examples of startups and companies using dispensers and refill stations including Algramo, The Body Shop, Waitrose, Nestle, and Asda. Examples of companies offering refills at home include P&G, Myro, Blueland, and Grove Collaborative. Returnable packaging is packaging that is part of a system that provides for the collection and refill of the package by a business. Customers send the packaging back to the business, which in turn puts new products into the empty packaging. Notable examples include Coca- Cola Brazil, Loop, Returnity, Anheuser-Busch in partnership with Conscious Container, DeliverZero, ClubZero, and the various pilots by quick-service restaurants like Burger King. In this system, packaging is treated as a business asset. These two types of reusable packaging can overlap - for example, when a consumer has the option to both drop-off a reusable bottle at a store for the business to handle and refill, and to bring that same bottle to a retailer’s filling station and refill it themselves. Guidance for Reusable Packaging | 10 [Figure 2] Fig [2]. Returnable and refillable packaging are not the same thing, although they can overlap Packaging that is designed to be reusable (by being either returnable and/or refillable) but that does not actually get reused by a consumer or business for the originally-intended purpose should not be considered reusable. This will be discussed in more detail in the section Theoretical reuse vs. reuse in practice. The ultimate goal is to reduce the environmental footprint of the package-product system, and reusable packaging should be designed in whatever way is in service of this goal. One format is not necessarily better than the other, and there’s no single “right” way to design reusable packaging. It doesn’t need to involve dispensers in retail environments, although it can. It doesn’t need to switch from plastic to aluminum or glass, nor does it need to offer home refill or packaging being mailed back to the business. For example, refillable systems that have some disposable components such as pouches or inserts are not inherently inferior to returnable packaging systems involving retailers or mail-back programs. In time, programs may transition from refillable to returnable, or some combination of the two, and back, and this is not an indication of the program’s success or failure. Learn more: Ellen MacArthur Foundation, “Reuse - Rethinking Packaging” guide - a framework to understand reuse models that identifies six major benefits of reuse and maps 69 reuse examples. “Sustainability of reusable packaging–Current situation and trends” - this paper includes a classification for reusable packaging systems. FTC Green Guides - these guides help marketers avoid making environmental marketing claims that are unfair or deceptive to consumers. Guidance for Reusable Packaging | 11 Reuse in the context of a product's life cycle [Figure 3] Fig [3]. Reuse creates internal loops within the larger life cycle of a package The life cycle of any packaging involves sourcing raw materials, converting these materials into packaging, distributing the product to retailers or directly to consumers, use of the product by consumers, and disposal or recovery. Reusable packaging creates a feedback loop between the use phase of a product and the manufacturing and distribution phases. In the case of returnable packaging, a consumer returns an empty package to brand owners, retailers, or distribution centers. In the case of refillable packaging, consumers may take the packaging to a retail dispensing station or purchase new products in the form of refills or inserts. By facilitating an increased number of uses, reusable packaging postpones the disposal phase. Some reusable packaging, such as refillable glass beverage bottles, may be recoverable through recycling at its end-of-life while some may be landfilled or incinerated. As a result of this, reusable packaging has some predictable environmental trade-offs. In the first three phases of the life cycle - raw material extraction, manufacturing, and distribution - reusable packaging usually has higher environmental impacts because its need for durability makes it heavier, requires more material, and/or involves reverse logistics. But with all subsequent uses, reusable packaging bypasses the material extraction and manufacturing phases, and the initial impacts are spread out over the number of uses. Because the environmental impacts of packaging are usually the highest in the sourcing and manufacturing phases, spreading these impacts over a larger number of uses can result in environmental benefits and cost savings. Guidance for Reusable Packaging | 12 Many of the environmental considerations for reusable packaging are similar to those of single-use packaging. What material is the packaging made out of? Does it include recycled content? What are the impacts from manufacturing, and how it will be disposed of at its end- of-life? For this reason, sustainable packaging strategies such as using recycled content and ensuring recyclability at end-of-life apply to reusable packaging in much the same way as they do for single-use packaging. Reusable packaging also needs to perform the same key functions as single-use packaging, such as product protection and distribution. If the product becomes damaged or spoiled, this product loss has a greater negative environmental footprint than the type of packaging used. Yet reuse also presents unique considerations, primarily in the transportation and use phases, due to the logistics of refilling and returning packaging. How often a package is functionally reused, the distance required for transport, and the impacts from cleaning must all be taken into consideration. This can make one-for-one substitutions of single-use to reusable packaging more complex than they first seem. This is compounded by the fact that many companies evaluate reusables based on whether they can be recycled at end-of-life. Clearly, there can be benefits from the package being designed for effective reuse and having a simple recycling option at end-of-life. But it may also be the case that a non-recyclable reusable option can offer superior environmental benefits to a fully recyclable package. Choosing to not pursue reuse because of limited recyclability at end-of-life might sacrifice net environmental benefits. In many cases an environmental or economic comparison of a single-use system and a reusable system may require building a custom model that includes a particular product’s assumptions about return rates, distances traveled, etc. However, existing tools are available to help inform these models or to perform more generalized calculations, including: KIDV Excel-based LCA tool | A tool to calculate the environmental impact and economic profitability of reusable packaging Plastic IQ | An online tool that can model the impacts of a new plastics strategy that includes reusable packaging Guidance for Reusable Packaging | 13 Despite the complexity of direct comparisons, one thing is clear - the entire packaging- product system matters more than the materials used. Reuse becomes environmentally preferable to single-use not when an aluminum cup replaces a plastic cup, but when a cup is functionally reused many times, in as concentrated of a geographic region as possible. Other factors that contribute to successful reuse systems are discussed in the Measuring success section. Learn more: "Reuse Wins", Upstream - a meta analysis of life cycle assessment work comparing reusable packaging to single-use, and a review of available economic data on savings to businesses. “Think reusable straws, wraps, and cups are always better for the environment? Think again.,” Anthropocene Magazine - a summary of an LCA study published in The International Journal of Life Cycle Assessment that found reusable products are not necessarily always better for the environment, since their impact depends on how they are used “Reusable vs. single-use packaging: a review of environmental impact”, Utrecht University, Zero Waste Europe, and Reloop - a report focusing on how and when the reuse of packaging is a better alternative than single-use. Single-use packaging versus reusable packaging Because of both the real and perceived negative environmental impacts of single-use packaging, brands may aim to move away from single-use options. As a result, brands may claim their packaging is already reusable, particularly when a package uses more durable materials such as glass. Yet there are key differences between single-use and reusable packaging that make these kinds of claims inaccurate and misleading. Single use packaging is intended to store, protect, and deliver product contents until the packaging is empty, at which point it is thrown away by the consumer. Reusable packaging, on the other hand, enables the same type of purchased product to be placed into the packaging, displacing the need for new packaging. Guidance for Reusable Packaging | 14 Packaging that can be repurposed by consumers for other uses in theory, such as using a glass jam jar to store food or household items, for cooking, or for a craft, cannot be considered reusable packaging. This is because there is no system in place that enables consumers or businesses to place newly purchased contents into the packaging. It is clear that this type of “repurposable” packaging does not displace the need for more primary or secondary packaging, and is not included in the ISO standard’s definition for reuse. Today, some reusable packaging systems include accessories or ancillary components (such as safety seals, portion cups, etc.) that are disposable. Future innovation may develop new, reusable alternatives to these components. In the meantime, these disposable components should not be counted as part of the reusable packaging system. Theoretical reuse versus reuse in practice When considering reuse, brands may focus on how many times reusable packaging can be functionally reused. They may test their reusable option for durability or source specific durable, often heavy-weight materials. Unfortunately, this focus on theoretical reuse often draws attention and resources away from ensuring reuse in practice. Consider the case of shopping bags. As a result of plastic bag bans, some grocery retailers have switched to offering reusable shopping bags made of thicker material that they have determined can be reused a hundred times. This bag may have been selected after considerable procurement efforts, with internal debate about whether a hundred reuses is “enough” to be considered durable or reusable. Yet the most important aspect of reusable shopping bags is how often a customer actually reuses their bag. If they use their reusable shopping bag twice, it doesn’t matter that it was designed to replace a hundred single-use plastic bags. In fact, in this case its durability is an environmental burden - rather than providing customers with a lightweight single-use package, you’ve now switched to a packaging material that is effectively still single-use but many times more resource-intensive. The same holds true for all reusable packaging. If a refillable deodorant tube is made of a durable polypropylene that is 50% heavier than its single-use counterpart and designed to be reused 100 times, but a consumer only refills it three times before switching to a different brand, the theoretical reuse rate of 100 times is irrelevant. Guidance for Reusable Packaging | 15 Simply put, it’s not enough to focus on how many times reusable packaging can be reused (also known as the theoretical lifespan of the packaging). Brands and retailers also need to ask: How do we know if it will get reused? What consumer research or indicators do we have that demonstrate that reuse is likely to occur? How many times will it get reused? How can we incentivize it to be reused? Unfortunately, for many of today’s reusable packaging pilots, the theoretical reuse rate is used as the primary metric of success, often highlighted in press releases and articles. Other, more accurate metrics of success are outlined in the Measuring success section of this guide. Guidance for Reusable Packaging | 16 Unpacking Industry Assumptions about Reuse Today, it appears that brands often operate under a number of assumptions about what reusable packaging should look like, what sustainability goals it can achieve, and how it should be designed. Below are some of the most common assumptions about reusable packaging, as gleaned from conversations with reusable packaging professionals, discussions at industry events, corporate sustainability documents, pilot project communications, and press releases. Unpacking these assumptions can help ensure that reusable packaging is both more successful and more sustainable in the long run. Reusable packaging, while not entirely new, is still an evolving space, particularly for categories such as consumer packaged goods, as well as refill and reuse handled primarily by consumers. Some of the assumptions below are a reflection of the nascent reuse industry as it grows beyond beverage and secondary packaging contexts to more widespread consumer applications. Furthermore, the nature of these assumptions is expected to change over time, and this document offers only a starting point for discussing the true goals and motivations of both consumers and brands. Assumption 1: Reuse results in a lower environmental footprint One of the main reasons both consumers and businesses pursue reusable packaging is to reduce their environmental impact. Sometimes the intended environmental effect is explicitly called out, such as when reusable packaging is made synonymous with “zero waste”, while in other instances reuse is more broadly couched under “eco-friendly” terms. Consumers and businesses may turn to reusable packaging in order to: But what about the environmental footprint? If reusable packaging reduces a product category’s packaging waste and eliminates single-use plastic and its related concerns, but increases the overall environmental footprint of the product because more materials are used or transported over long distances, should that still be considered a success? Few brands have made an explicit commitment to reduce their carbon emissions through the use of reusable packaging. It is rare to hear of a company performing a rigorous analysis of a reusable packaging system’s carbon footprint before launching a program or pilot. It also appears uncommon for companies to engage in the economic analysis and consumer research necessary to determine a program’s likelihood of adoption and success, which in turn is key to determining whether a reusable package will “break even”. Guidance for Reusable Packaging | 17 [Figure 4] Fig [4]. Company goals are often siloed and reusable packaging goals are often not linked to other goals like carbon reduction Rather, the environmental benefits of reusable packaging remain aspirational until they can be accurately assessed and confirmed. Consumers are likely to assume they have already made the sustainable choice simply by purchasing products in reusable packaging. They are not typically prompted to consider how many times they are likely to reuse the item in practice. And businesses are likely to assume reusable packaging is an inherent solution to plastic pollution, for example, without always building the reuse system necessary for widespread use and adoption of reusables as a substitute to single-use packaging. The assumed environmental benefits of reusable packaging, which are possible but not guaranteed, are broken out further in some of the assumptions that follow. Assumption 2: Reuse displaces single-use packaging and eliminates plastic pollution Despite including reusable packaging in their sustainability goals, few companies have outlined what portion of their sales they expect to convert to reusables. Companies may not intend to cannibalize their own sales of products in single-use packaging with reusable packaging. Rather, many appear to be treating reusable packaging as a new revenue stream that attracts new customers, while continuing the status quo of manufacturing products in single-use packaging. Guidance for Reusable Packaging | 18 Because many of today’s reusable packaging innovations are in pilot phases or are run at limited scale alongside single-use, they seem to be effectively growing the size of the packaging pie. Unless the single-use option is removed entirely in favor of the reusable option, it will be difficult to quantify to what extent reuse has displaced single-use packaging. By the same token, it is unclear whether reusable packaging can be hailed as a direct solution to the plastic pollution problem. Reusable straws can displace plastic straws in the ocean, but this depends on a widespread and sustained replacement of the single-use option with the reusable option. Unfortunately, most of what is taking place today is reusable options being offered alongside and in addition to the single-use options that contribute to plastic pollution. This does not discredit the potential of reusable packaging to tackle some of the problems associated with single-use packaging, such as the end-of-life challenges that ultimately lead to plastic pollution. Plastic pollution needs to be addressed through a number of strategies, such as consumer engagement, sufficient waste management infrastructure, and reduction of unnecessary formats, not just through reusable packaging. Assumption 3: Reuse addresses excessive consumption By some measures, the environmental problems with packaged products lie not in the materials used for packaging or their recyclability (or lack thereof), but in the overwhelming increase in the volume of goods purchased globally, otherwise known as consumption. In almost all instances, the environmental footprint of the product itself far outweighs the footprint of the packaging. This means that pursuing sustainability will require a reduction in the amount of resources mined from the earth and the impacts of making new products, not just new packaging. In many of the reusable packaging pilots and models on the market today, reuse is positioned as a way to alleviate some of the guilt consumers have historically had about the impacts of their purchasing and behavior. For example, many consumers feel guilty about the amount of packaging waste associated with their online purchases. In response, innovators and brands may turn to reusable packaging as a solution that allows consumers to order online “guilt- free” by getting their purchases in returnable mailers. Guidance for Reusable Packaging | 19 Though there is limited research on this topic, it is possible that reusable packaging may help to lower consumption. For instance, a brand may offer a multipurpose, refillable cleaning product, which takes the place of many individual products and perhaps lasts longer. In this way, offering less variety of product types, sizes, functions, etc., and instead focusing on “core” products, may result in fewer goods produced and sold. A consumer may buy a single product that performs a number of functions, and because of a limited selection, may be less prone to experimenting in a way that results in unused or unfinished products going to waste. More research is needed to better understand these long-term consumer purchasing behaviors when reuse is available. However, in many cases, reusable packaging is not displacing consumption. In other words, sometimes, the sustainability benefit of reusable packaging may be entirely illusory. A retailer may introduce a reusable aisle or area of the store with reusable versions of products, thereby attracting new or more customers. These customers may purchase products in reusable packaging in addition to the single-use version they normally buy, due to factors like novelty and a desire to experiment. Consumers may also participate in reuse as part of virtue signaling, which is the practice of publicly expressing opinions or sentiments intended to demonstrate one's good character or the moral correctness of one's position on a particular issue. If the purchase of reusable packaging is superficial and does not lead to lasting change in consumption habits, the environmental benefits will not be realized. Assumption 4: Reuse is motivated primarily by sustainability considerations Although reusable packaging does not have a guaranteed environmental benefit over single- use packaging, it is often assumed that adoption of reuse is motivated by sustainability considerations. It is important to understand the true drivers that compel both consumers and businesses to turn to reusable packaging. Consumers Early versions of reusable packaging, namely bring-your-own cups, bags, and straws, can be thought of as “reuse 1.0” that may have started with environmentally-conscious consumers aiming to reduce their reliance on single-use packaging. Certainly, a segment of today’s consumers continues to pressure brands to offer reusable packaging, particularly as a replacement to single-use plastic, due to concerns about plastic pollution in the environment. Guidance for Reusable Packaging | 20 But when it comes to “reuse 2.0” offerings, like refillable deodorant or laundry detergent, most consumers aren’t engaging solely for sustainability reasons. A recent World Economic Forum survey found that in Europe, nearly as many consumers (34%) seek out reusable packaging if it makes products less expensive, as those who do so for environmental reasons (38%). In North America, 31% want reusables to reduce harm to the environment, while 28% want it to make products less expensive and 22% want it to be more convenient than disposable packaging. Clearly, consumers will participate in reuse systems for specific benefits during the use phase, not just because of concerns about the disposal of a product. Novelty, the desire to experiment or customize the product, and an improved user experience are all driving interest in reusables. These non-sustainability “ulterior motives” may be even higher in practice than the altruistic behaviors consumers tend to report in surveys. Many consumers turn to reuse for: Lifestyle advantages - reusable packaging may attempt to provide lifestyle benefits to consumers, such as: Alleviating guilt about consumption Reducing or eliminating decision fatigue (through a more limited selection) Identify and experiment with new trends and/or products Saving money or getting a discount Fitting into a popular aesthetic (e.g. a streamlined, minimalist look) Enhanced user experience - reusable packaging may attempt to improve the effectiveness, ease of use, or other benefits of a product, such as: Preventing leaks and spills Customizing and controlling formulas, fragrances, flavors, etc. Buying the correct amount of product Storing the product in the same container it was purchased in Reducing the frequency, amount, or size of purchases Being more fun or enjoyable to use Being aesthetically pleasing Will these drivers sustain engagement? When reuse for consumers is motivated by lifestyle and user experience considerations, rather than sustainability, there may be less guarantee that reusable packaging will be used as intended. It may be purchased for novelty’s sake, used once, and then never refilled or returned again. In this case, reusable packaging will simply be a heavier-weight, more resource-intensive single-use packaging. Guidance for Reusable Packaging | 21 Businesses At the same time, businesses are pursuing reusable packaging for a variety of strategic, branding, marketing, and/or operational reasons. For example, brands see reuse as a way to meet their sustainable packaging commitments, demonstrate action on single-use plastic concerns, or keep up with peers’ progress on sustainability efforts. While these marketing and business strategy drivers may refer to environmental problems and commitments, framing reuse as a business opportunity is a fundamentally different lens than framing it as a sustainability imperative. By focusing on goals, competitors, or industry trends, the sustainability of reuse in practice becomes secondary to other considerations. Many businesses turn to reuse because of: Business/strategy considerations - reusable packaging may attempt to solve strategic problems or provide a market advantage, such as: Appealing to dark-green consumers who normally wouldn’t buy the product Selling more product through a new channel Retaining consumers who like the product but are unhappy with the associated packaging waste Getting data about consumer behavior and usage patterns Locking customers in with unique formats and building brand loyalty Signaling a brand’s efforts to make progress on sustainability Keeping up with peer companies’ efforts Operational considerations - reusable packaging may attempt to solve operational challenges for a business, such as: Eliminating safety and sanitation concerns with existing self-serve areas or dispensers Improving the checkout experience by eliminating steps like consumers needing to weigh their own containers before filling Saving on disposable packaging costs Offering improved protection of contents during delivery In some cases, brands may pursue a certain reuse strategy even if it is not perfectly suited to customers’ needs or exactly what consumers are asking for. For example, they may pilot a dispensing system because it has been launched by their competitors, even though a dispenser might have a higher carbon footprint than a refill-at-home system. They may elect to offer a drop-off program because it involves simpler logistics, even though consumers may prefer to have empty containers picked up at home. Guidance for Reusable Packaging | 22 Assumption 5: It is feasible to return to traditional systems of reuse like the milkman model Reusable packaging is often framed as a return to how society shopped and consumed products before the advent of plastic. This is seen in references to the “milkman model”, where your neighborhood milkman delivered milk to your doorstep in reusable glass bottles and then retrieved the empty containers as part of the next delivery. Some of today’s reusable packaging innovations aim to bring back these concepts. 1880s - 1890s 1910s - 1920s 195 0s 1990 s - Early 2000s Today Paper, glass Packaging RPCs Multi-material Cellulose, metal (Reusable flexible plastics, materia ls and can s Alum inum Plas tic Prod uce alterna tives, formats Package-free (e.g. Containers) fibers, bioplastics, bar soap) compostables Diversity of products and SKUs Purchasing Bulk/loose items Peak popularity e.g. spice market Dispe nsers of the m ilkman Separately-sold Takeout packaging options ills or general store model insert & ref with high performance requirements Return to store for Increase in Comprehensive deposit (e.g. soda eating & grocery delivery Shopping Full service bottles) mod es shop ping Superm arkets drinking on the E-comm erce Beginning of self go delivery with service in grocery condary stores Club stores se packaging [Figure 5] Guidance for Reusable Packaging | 23 Today, a model that delivers only dairy products to consumers’ doorstep would likely still be inefficient, while also feeling incredibly limited compared to what is available on e-commerce platforms like Amazon. At the same time, it would also be incompatible with some modern day realities - since the 1950s there has been a 50% reduction in the number of households with a stay-at-home parent, and an increase in single-person households. This has implications for reusable packaging because not having someone at home to put away perishables at any time during the day makes cold chain and timed delivery essential for certain goods. Clearly, society has fundamentally changed since the “golden era” of reuse, and reusable packaging cannot simply be a return to how things were. Today’s reusable packaging must navigate a number of new behaviors and expectations that society has adopted since the milkman days. These include shopping on-demand via e-commerce, ordering via apps, expecting a huge diversity of products, experimenting with products rather than locking themselves into a particular brand, expecting packaging to have properties such as grease barriers or heat retention, eating and drinking on the go, and ordering a wide variety of perishable groceries (not just milk) for home delivery. As just one indicator of these modern day demands, in the 1960s grocery stores tended to carry 6,000 SKUs, while now many stores have closer to 50,000 SKUs. Many “old” systems of reuse depended exclusively on active participation from consumers, for example by shopping for themselves, returning bottles to stores, or bringing containers to fill. By contrast, many of today’s reusable packaging pilots still require active participation, but aim to reduce what is asked of consumers - for example, by providing single-use refill containers as back-up in case consumers forgot to bring their own, or by outsourcing behaviors to logistics providers, such a mail carrier picking up the container rather than the consumer needing to return it to a store. This is because many brands implicitly assume that widespread adoption of reuse will only occur if reuse is made as easy as possible, which often means making it as similar to the single-use experience as possible. For more on this, see the next section Assumption: reuse shouldn’t require significant behavior change. While this may or may not always be the best strategy for reusable packaging, it is markedly different from how reusable packaging systems used to operate. Given the many new ways that consumers shop and the expectations they have, it’s no wonder that adapting reusable packaging to today’s world is a challenging task. While there is plenty of inspiration to be gained from reusable packaging systems of old, brands and solutions providers will need to learn how to adapt reusable packaging to modern day demands and realities. Guidance for Reusable Packaging | 24 Assumption 6: Reuse shouldn’t require significant behavior change Reusable packaging often involves a strong, inherent tension between the behavioral status quo and behavior change. Time and time again, reusable packaging innovators and leading brands have emphasized the need for solutions that require little to no behavior change from consumers - reuse should be as easy as throwing something away. McKinsey research shows that consumers are unwilling to sacrifice convenience for sustainability considerations. This may lead companies to assume that asking consumers to perform new behaviors will doom a program to fail. In many cases, this concern seems well-founded. Asking consumers to return containers to the store for refill is a big change from asking them to put packaging in their recycling bin at home. With the exception of areas where bottle bill redemption rates are high, few US consumers today have the practical experience of taking empty packaging with them to the store, with the exception of reusable bags. Since the sustainability of returnable packaging hinges on high return rates, perhaps more than any other reuse logistics, convenient returns are key. Yet is behavior change necessarily always a bad thing? If we hope to adequately address climate change, plastic pollution, and a myriad of other environmental problems, both consumers and companies will need to do things differently than they have in the past. Incremental change and fitting reusable packaging into the existing system may not be the right solution to social or environmental problems. Reusable packaging that requires too little behavior change may be evidence that a brands’ efforts are “press release projects” aimed at generating positive publicity or goodwill, rather than scalable, environmentally- preferable, and cost-effective solutions. Guidance for Reusable Packaging | 25 [Figure 6] Fig [6]. Behavior change in reuse can reinforce the status quo, or it can move the package/product towards systems change Because many consumers are looking for lifestyle and user experience benefits as part of their rationale for trying reusable packaging, behavior change may be a key part of meeting these needs. For example, a consumer desire to have more control over the scents and formulas of personal care products means the consumer wants to engage with the product in more ways than just buying, using, and throwing it away. When a consumer wants to participate in the “creation” of the product, such as making cleaning products at home by mixing water and concentrate, reusable packaging can support innovative, wholesale changes to the entire package-product system. To some extent, reusable packaging is what consumers want, regardless of the behavior change required. Indeed, a joint survey by the World Economic Forum, SAP, and Qualtrics found that around the world, people believe choosing products in reusable packaging is the “most adoptable” zero-waste measure they can take, and see cost as a bigger barrier than potential inconvenience. Ultimately, reusable packaging, no matter how simple or convenient it is, will inherently require behavior change, and brands can consider ways to embrace and better design for that change. Returning or refilling a package is fundamentally different from throwing it away. Rather than denying or avoiding this, brands and solutions providers can use the required behavior change to their advantage, creating a new offering that adds more value to consumers. This can be done by removing friction in a current system, thereby making the reusable packaging more attractive than the single-use packaging option. Guidance for Reusable Packaging | 26 What is friction? Friction can be thought of as the barriers, real or perceived, associated with an action, such as participating in a reusable packaging program. These can include financial barriers, such as having to pay more money or put down a deposit, retail experience barriers, such as different check-out procedures for reusable packaging, and barriers to convenience, such as unfamiliar behaviors required to use a product or send it back. New behaviors associated with reusable packaging can add friction, but they may also remove friction, as shown in the examples of behaviors in the table below: Examples of reuse behaviors Examples of ways reuse may that may add friction remove friction Bring empty container to store or retail Less decision fatigue as a result of more location limited selection Before purchase Create an account on an app or website Smaller amount of product to buy (e.g. to purchase products or pay a deposit refill insert rather than entire item) Pay separately for a container you keep Receive a discount for participating in the reusable system Purchase on a platform or website different from other avenues of shopping Pre-weighed packaging that eliminates having to weigh (tare) a container Ordering/Paying Get a weight (tare) on empty container Buy product at a lower cost Pay a deposit on a container you need to return Pay with packaging features (e.g. RFID codes) / “packaging as a wallet” Store returnable secondary packaging until it needs to be returned Store empty returnable primary packaging until it is returned In the home / Store product in the purchased container; Use phase Dissolve a product / finish "making" the don’t need to repackage product Communicate to household / remember that the packaging is not single-use (i.e. should be saved) Schedule a pick-up of the returnable container Done with Clean primary packaging product / End No need to dispose of packaging (e.g. put Return packaging to store/drop-off point it in the bin, take it to the curb) of life or mail it back Dispose of reusable packaging at its end- of-life Guidance for Reusable Packaging | 27 It is interesting to note that today, reusable packaging appears to mostly add, rather than remove, friction. Going forward, brands can embrace reusable packaging as a tool for increasing brand loyalty and offering a radically improved product or better customer experience. For example, craft breweries that use reusable growlers can offer seasonal varieties of beer to customers that are members, increasing the likelihood that these customers will return for refills to get the unique product. For personal care or food products, a subscription service with auto-replenishment of smaller batches of product can lead to higher customer satisfaction through enhanced freshness and the convenience of automated orders. Going forward, future disruptive innovations or collaborations across industries may support a more seamless and convenient experience for customers. For example, the ability to access reusable offerings at one type of location (for example, a restaurant) and return the empty packaging to another type of location (for example, a retailer) will help make reusable packaging more accessible and familiar to consumers. As reuse becomes more widespread, both the perceived and real behavior change required are likely to lessen. Lower Displaces single-use Addresses Motivated Can be a return Shouldn't require environmental plastics and excessive primarily to traditional significant impact eliminates plastic consumption by sustainability systems like the behavior change pollution milkman model [Figure 7] Fig [7]. Common industry assumptions about the purpose and design of reusable packaging Guidance for Reusable Packaging | 28 Establishing Goals for Reuse What is the goal of reusable packaging? The goal of reusable packaging should be to reduce the environmental footprint of the package-product system. This includes carbon emissions, associated water use, material health and chemical concerns, energy use, and impacts from disposal, including leakage into the environment and the negative effects of plastic pollution. This goal - to reduce the environmental footprint - is not the same as reducing the amount or volume of single-use packaging sold. Though closely related, in some instances these goals may be at odds with each other. Reusable packaging may increase the carbon emissions or energy consumption of the package-product system, particularly if it is not reused many times by consumers. In cases where packaging will not be reused enough times to justify the more durable materials and reverse logistics, single-use packaging may still be preferable. Primary goal Reduce the environmental footprint of the package-product Other goals may intersect system with the primary goal Reduce the Reduce amount/volume of consumption single-use plastic and/or disposable packaging culture Goals may also not align [Figure 8] Fig [8]. The primary goal of reusable packaging and how it intersects with other goals Guidance for Reusable Packaging | 29 After acknowledging that reusable packaging is not always guaranteed to be more sustainable than single-use packaging, the next step is to consider what might be the best role for reusable packaging. Should 100% of the packaging we have today be reusable? What would be the environmental impact of doing so? If not 100%, how much of their single-use packaging should brands aim to replace with reusable packaging? Companies should identify when reusable packaging will be environmentally-preferable to single-use, and pursue innovation in those categories and formats. Part of this decision requires brands and retailers to realistically assess the likelihood that consumers will sustain their participation in reuse and refill offerings, and the ways in which behavior change and friction can be optimized to ensure the greater success of reuse. This is discussed in further detail in the Designing Reusable Packaging section of this document. By reducing the volume of single-use packaging and consumption of raw materials, a reusable packaging system also creates new value. After all, a circular economy in which reuse is prioritized is an economic model that decouples growth from resource consumption. This involves achieving economic growth from the utility and durability of products and by offering new features and technologies, rather than focusing on the lowest-cost delivery of products in single-use packaging. Brands and retailers may find that this value-creating opportunity of reuse is one of the best levers for internally advancing reusable packaging goals and initiatives. Guidance for Reusable Packaging | 30 Part 2. Designing Reusable Packaging As explored in the previous section, reusable packaging should aim to have a lower environmental footprint than single-use packaging, as well as high return and refill rates in practice. How might it achieve these goals? Part of what determines the success of reusable packaging is the design of the product- package system. This section outlines the important decisions brands need to make about how reusable packaging systems are structured and which product categories may be a good fit for reuse. It also explores some best practices for designing reusable packaging to be both environmentally preferable and successful. As reuse continues to be an evolving space, the recommendations for designing reusable packaging for a broad range of product categories is likely to change over time, and will be revisited as more is uncovered about the best practices for reuse. Reuse for various product categories Brands often assume that all packaging is a good candidate to move to reusable packaging, but this may not be the case. When pursuing reusable packaging innovations, it is important to acknowledge that reuse is not always a good fit for every product category. Reusable packaging may be a better fit for categories that meet certain criteria, such as: Items that are used in foodservice (e.g. beverage cups, takeout containers). Businesses go through large quantities of these items and consumers purchase them frequently, making it more likely that reusable packaging alternatives will quickly meet the high levels of reuse in practice. Example: ClubZero reusable cups and containers Items that are bought frequently (e.g. personal care, home care, supplies for work environments). Because these products are consumed fairly quickly and have high levels of repeat purchasing, it is more likely that the reusable packaging will have high return/refill rates, thereby lowering the environmental footprint. Example: Unilever and Asda offering refillable household products Items purchased online that are returned often (e.g. clothes, footwear). These products are already being sent back by consumers when they don’t fit or match expectations, and the single-use secondary packaging can be replaced with reusable packaging. However, for products with high return rates it is equally important to prevent overconsumption. Example: RePack’s reusable mailers used by MUD Jeans Guidance for Reusable Packaging | 31 Where purchasing a specific quantity of product is important. For some product categories, consumers express a desire to purchase less or more than the standard quantity sold, such as in the case of cleaning supplies, spices, or condiments. They may do so because purchasing a smaller amount is cheaper, matches what they need in a recipe, or because they don’t use it often and don’t want the product to expire. In these instances, a refill system may provide added value and help prevent food and product waste. Example: Algramo’s dispensers of cleaning products and detergents Where the current packaging fails to adequately protect the product. One of the primary functions of packaging is to protect the product. This is especially critical for e- commerce channels, where protection should be one of the main goals of packaging. If single-use packaging is not able to adequately protect the product and there are chronically high loss or damage rates, reusable packaging may help to reduce product damage and loss while also enabling reuse. Example: Liviri’s reusable cooler for wine shipments Where there is already a “closed loop system” of return in place (e.g. rentals). Instances where products are already circulating from one business to another and back, or from the business to the consumer and back, such as rentals, are low-hanging fruit for reusable packaging. Example: Rent the Runway using Returnity’s reusable mailer Where there is a subscription model in place. Products that are purchased via a monthly subscription model, such as wine or produce, may have success with collecting used packaging during the delivery of the next order. This is easier to facilitate when the delivery logistics are managed by the company, rather than a third-party carrier. Example: Imperfect Foods’ return program for grocery delivery packaging Packaging that is often stored in the open or on display (e.g. soap dispensers). For these products, external appearance is often important, and the more durable, “counter- worthy” design of reusable packaging may add additional value to the consumer. Example: Refillable hand soap systems like Blueland As just one example of this criteria in practice, consider products that are bought relativelyQ infrequently, such as seasonal decorations. Packaging for this category may not be wellQ suited to reusability because the packaging is not likely to be reused often enough to meritQ the additional materials and reverse logistics needed to produce and sustain it. Guidance for Reusable Packaging | 32 Learn more: “Bringing Reusable Packaging Systems to Life: Lessons Learned from Testing Reusable Cups”, Closed Loop Partners - a report of learnings from multiple pilots of smart, modern reusable cup systems Design Principles for Materials used in Reusable Packaging and Foodware Services, Upstream - a set of guiding principles surrounding the material choices for reusable packaging and foodware Customizing versus standardizing reusable packaging systems When designing reusable packaging, brands need to decide what format their packaging will take, and whether this format will match industry norms. For example - Should a refillable soap bottle be the same volume as existing soap bottles on the market, with an opening that allows for refill using a variety of product types (e.g. concentrates, tablets, liquids)? Will the retail dispenser be able to accept a variety of bottle shapes, sizes, and brands, or will it only allow consumers to refill packaging that is a particular size or brand? Will the payment platform and/or app be unique to each solution, or will the reusable packaging be offered via third-party platforms such as Amazon or UberEats? In the context of reusable packaging, customization refers to the process of designing reusable packaging that is visually or functionally distinct from competitors or other products in the category, and is collected through a unique reverse logistics channel. Meanwhile, standardization refers to ways in which the reusable packaging may fit into existing recovery streams or may use one design across brands, platforms, or channels. The decision to customize or standardize can have direct implications for the adoption of reuse, and for reducing the environmental footprint of reusable packaging. Industry examples of standardization include Coca-Cola’s Universal Bottle, used in Latin America and South Africa, as well as the Oregon Beverage Recycling Cooperative’s refillable beer bottle program. Guidance for Reusable Packaging | 33 Additional considerations for customization versus standardization are listed below: Customization Standardization Meets the specific needs of the Gives consumers more choices (i.e. brand or retailer can refill with any brand’s product, return it to any location) May have a lower carbon footprint, particularly if it is designed to Easier for reverse logistics providers Pros address barriers to adoption or to service, clean, and/or store return rates, or to create more efficient reverse logistics May have a lower carbon footprint, particularly if it leads to wider May encourage brand loyalty adoption and operational efficiencies of scale Requires consumers to keep track of May not meet the needs of all and/or store a variety of brand- brands, retailers, or consumers specific containers and systems, lowering likelihood of participation May eliminate important brand identify or product differentiation Consumers may not want to return packaging that is too beautiful or May lack the novelty or unique experimentation consumers are seeking from reuse Cons Too much customization may hinder widespread adoption of reuse, since May lack important features, such as consumers are locked in to a effectively protecting the product particular brand’s offering May have a higher carbon footprint, May have a higher footprint, particularly if a one-size-fits-all particularly if there are low approach results in low return/reuse return/reuse rates due to consumers rates not participating in the reuse system Requires coordination between for a sustained period of time brands and/or involved parties Guidance for Reusable Packaging | 34 Ultimately, the decision to standardize versus customize may depend on the product category. Many categories already have standardized formats that do not serve as product differentiators (e.g. paper coffee cup, laundry detergent jug, yogurt tub, pizza box). Here, these standard formats offer efficiencies of scale for brands and retailers, and can do the same for reusable packaging. In product categories with high levels of consumer experimentation, such as beauty, it is unlikely that consumers will stay with one brand long enough to facilitate the high levels of reuse in practice necessary for sustainability. Can a consumer really be expected to refill a bespoke lipstick container from a single brand hundreds of times? Instead, competing brands can offer refills for the iconic lipstick packaging format, giving consumers more options for when they inevitably want to experiment while also helping to ensure the environmental gains of reuse over single-use. Point-to-Point versus Hub-and-Spoke An important consideration for reusable packaging is whether it will be sent out or collected using a point-to-point model or a hub-and-spoke model. [Figure 9] Fig [9]. In the context of reuse, point-to-point models typically offer consumers individualized reverse logistics, while hub-and-spoke models rely on central locations such as retailers to facilitate returns Guidance for Reusable Packaging | 35 Reusable systems using point-to-point delivery and return may include: Delivering reusable packaging directly to consumers via e-commerce Providing consumers with a return label that sends the empty packaging directly to the brand for refill Picking up empty containers directly from consumers’ homes Reusable systems using hub-and-spoke delivery and return may include: Making a trip to a retail location to purchase the product or use a dispenser Returning reusable packaging to a central location, such as a restaurant or retailer Sending reusable packaging to a third-party location, such as a distribution center or cleaning center According to a meta-analysis conducted by Reloop and Zero Waste Europe, one of the biggest sources of environmental impact for reusable packaging is the transportation phase, which includes both sending packaging to consumers and collecting it once it is empty. For this reason, the decisions around how to structure reverse logistics using either the point-to- point or a hub-and-spoke model play an important role in determining the environmental footprint of reusable packaging. While the point-to-point model may offer more convenience by enabling delivery and pick- up directly from a consumer’s home, it may have a higher environmental impact during the transportation phase due to the increase in individual trips. This will vary depending on how much of the pick-up route is "unique and empty", and on whether the reverse logistics are performed by a small business or a parcel carrier with a national network. For example, in the case of a UPS or FedEx, empty packages may be picked up one at a time but are immediately aggregated with other packages traveling similar routes. Though there is a net addition of miles driven, the impact of a unique mile driven may be fairly low. In the case of frequent purchases or repeat deliveries, such as groceries or restaurant takeout, point-to-point collection may be warranted. Because in these instances home delivery is already taking place with regular cadence, it can make sense to pair it with the collection of empty or used reusable packaging. Although the pick-up part of the route may be “empty”, it is not “unique”, and is likely to have lower environmental impact from transportation. Guidance for Reusable Packaging | 36 Some businesses may prefer the hub-and-spoke model, which uses retail or restaurant locations to refill and return packaging. Here, the expectation is that consumers will return the packaging, taking some of the reverse logistics out of the hands of businesses. Though there are efficiencies gained from centralizing collection, the hub-and-spoke model may be more inconvenient for consumers. As mentioned earlier, today’s consumers do not have experience bringing numerous empty containers with them as they shop or run errands. And while this model builds on existing infrastructure, there may be issues with capacity or space on-site. Ultimately, the decision to use a point-to-point or hub-and spoke model, or some combination of both, will depend on the specific reusable packaging system in question. However, it is a decision that should be made carefully due to the implications on transportation emissions and the required level of behavior change for consumers. Facilitating reuse in practice One of the biggest challenges for reusable packaging programs is whether and how consumers will return packaging to the retailer or brand owner, or bring empty packaging back to retail stations for refilling. This guide has emphasized the importance of reuse in practice since it is key to a lower environmental footprint for reusable packaging. Yet reuse in practice is also one of the biggest unknowns for brands looking to introduce and scale reusable packaging programs. A 2021 report of consumer behavior in the UK found that 83% of consumers are open to change when it comes to reusable packaging and 4 in 10 have used reusable packaging. Clearly, there is growing evidence that consumers are ready for reusable packaging, but a well-designed, thoughtful foundation to reuse is the first step to ensuring consumer participation in reuse. Brands and designers can return to the key decision points that have been presented in this guide, considering how they can incentivize consumers by: Designing for consumer motivations that go beyond sustainability considerations Understanding how consumer behavior change can lead to positive systems change Designing reusable packaging programs in product categories that have higher likelihoods of consumer uptake Deciding whether to customize or to standardize reusable packaging design and ecosystems Deciding whether to deploy a point-to-point versus hub-and-spoke model Other practical considerations, such as cost, ease of use, and reverse logistics, are outlined in the section Questions to ask about reusable packaging. Guidance for Reusable Packaging | 37 Incentives like discounts and promotions are essential for drawing in a more mainstream customer, who may need a financial reason to participate in reuse. For example, in the case of refillable soap sold through retail dispensers, the extra step of remembering to bring a container may be offset by the discounted price, as well as the ability to purchase only the desired quantity. Ultimately, the right mix of incentives and convenience will help reusable packaging programs stick. Another tool aimed at promoting the return of reusable packaging is a deposit. Deposits are small charges - often ranging from 5 cents to a few dollars - that consumers pay to use a container, and that are refunded to the consumer once the container is returned. There is no clear answer as to what constitutes the best deposit amount for reusable containers in the context of foodservice and food packaging. The deposit amount needs to be high enough to incentivize customers to return containers and communicate that a container has value, but not so high that the deposit acts as a barrier to entry, particularly to individuals of lower income. In some cases, charging a deposit for initial use of a container may not be the right tool for increasing participation. Numerous behavioral economics studies have found that people are more motivated to avoid a fine or tax, because of loss aversion, than to take advantage of a reimbursement. This means that a typical consumer is more likely to change their behavior to avoid a 10 cent charge on a single-use shopping bag, for instance, than to bring their own bags to get a 10 cent discount. Other alternatives to deposits include membership pricing models or charges to a customer’s account if the container is not returned within a certain period of time. As an alternative to financial incentives, brands can also integrate track and trace technologies into their design of the reusable packaging system. For example, digital trackers, “passports”, and unique barcodes can help integrate reusable packaging into apps that then prompt and incentivize consumers to return packaging, as well as keep track of reusable packaging throughout the reverse logistics journey. They could also enable brands to verify and quantify reuse in practice for marketing and further consumer engagement. Reuse programs that are integrated with tracking technologies seem better positioned to overcome barriers and provide meaningful incentives for customers. Learn more: “Circular Economy Infrastructure: why we need track and trace for reusable packaging,” Ellsworth-Krebs, K. (2021), Sustainable Production and Consumption - a paper exploring the ways in which digital tracking could audit and incentivize reuse of packaging “How to help consumers adopt reusable packaging”, IGD - a report based on research with over 2,000 UK consumers, outlining key opportunities to help consumers adopt refill and return packaging solutions. Guidance for Reusable Packaging | 38 Brands don’t have to do this alone. An entire ecosystem of reusable packaging solutions providers exists to improve the user experience of reusable packaging and solve reverse logistics challenges. Brands can identify partners using the following directories: Upstream - Reuse Business Directory Reusable Packaging Association - Reusables Marketplace Source Green Packaging - Reusable Packaging Measuring Success It is important to apply rigor and data to understand whether reusable packaging is meeting the primary goal of reducing the environmental footprint of the package-product system. How do we know if reusable packaging has achieved its environmental goal? Life cycle analysis calculations are one tool to help demonstrate the reduced environmental footprint of reusable packaging. In addition to life cycle assessments, brands and retailers can explore other metrics for reusable packaging. Perhaps the best way is to analyze return and refill rates. That’s because this metric centers the goal of reusable packaging, which is to have a lower environmental footprint than the single-use packaging system. A return rate is calculated as the number of reusable packaging that has been returned after being used, divided by the total reusable packaging in circulation. Other metrics, such as costs and sales data, can also be used to understand how reusable packaging is performing, yet they have pros and cons to consider. Cost and sales data are practical, easily-quantifiable metrics that are important for establishing the business case for reusable packaging. However, they may reflect only short-term performance, rather than long-term adoption that translates into positive environmental impact. More considerations around these metrics are outlined below. Guidance for Reusable Packaging | 39 Return and refill rates Because the environmental benefits of reusable packaging depend on reuse in practice, metrics for success should include return and refill rates. As noted in earlier sections of this document, reusable packaging shouldn’t be measured by how many cycles it can withstand (e.g. built for 1,000 reuses), but how often it is actually being reused. For returnable packaging, this means success will require high return rates. What is high? According to some experts and research in this space, high return rates should be defined as at least 80%, but even higher return rates, around 90%, are better. This is because without high return rates, a package won’t be used more than a handful of times on average. Consider how, over time, a return or refill rate multiplied by itself translates to the following average number of uses: Return or Uses on Refill Rate Average 50% 2 uses 60% 2.5 uses 70% 3.3 uses 80% 5 uses 85% 6.67 uses 90% 10 uses 95% 20 uses 97.5% 40 uses Even a return or refill rate as high as 70% corresponds to just 3.3 uses on average, which is likely not enough to outweigh the environmental impacts of producing a more durable, reusable container. Guidance for Reusable Packaging | 40 To determine whether the number of uses on average is sufficiently high, consider a package’s breakeven rate. This is the number of times a reusable item has to be reused in order to “breakeven” with single-use packaging, or to have the same environmental impact as single-use. As outlined in Reuse in the context of a product’s life cycle, in the initial cycles of reusable packaging, it has a higher environmental impact because of the additional materials and transportation required. It is helpful to know the breakeven rate and evaluate whether it can be met with a low return or refill rate. For example, if the breakeven rate for a refillable deodorant pod is 15 uses assuming a 100% refill rate by consumers, and yet only 10% of consumers are likely to refill it 15 times, the environmental footprint of the refillable deodorant pod may ultimately be higher than for single-use. However, the breakeven rate is not the only metric that should be used, since breakeven rates are subject to variability in reverse logistics and actual return rates. For reusable packaging in food service settings, it can be effective to focus on building repeat ordering. Repeat ordering indicates consumer adoption and follow-through, and demonstrates that participation is not just part of a fad or virtue signaling. [Figure 10] Fig [10]. Poor metrics of success generally focus on theoretical reuse, while strong metrics of success tend to focus on return/refill rates Guidance for Reusable Packaging | 41 Inventory Utility and Management Successful reuse models also require keeping a close eye on inventory utility and management metrics. These include: The quantity of reusable packaging shipped (also known as trip or issue volume) The number of uses of the same asset over a particular period of time (also known as turns) The speed with which a reusable product completes an entire cycle (also known as cycle times or pool speed) The period of time a reusable container is available for use but remains unused (also known as dwell or idle time) Breakage or loss rates These metrics help paint a picture of how efficiently the reusable system is operating. For example, both costs and environmental footprint could be reduced by increasing the turns and cycle times, while also decreasing dwell time and breakage rates. Cost When considering reusable packaging, there are both one-time and ongoing costs that should be evaluated. A number of these are outlined in the Questions to ask about reusable packaging section of this document. Cost-savings can be a primary driver for reuse in some instances. For example, returnable packaging that is used in place of single-use packaging has the opportunity to reduce a business’s operational costs. This is because the ongoing costs of single-use packaging are converted into upfront costs for durable packaging, which can be managed as assets over time. Returnable packaging can also help a business mitigate the cost impacts of supply chain shortages for single-use packaging, or the costs of complying with an EPR program for single-use packaging. Where cost savings align with carbon footprint savings, the tailwinds are much stronger for reusable packaging. In some cases, costs will be higher for reusable packaging. While pilots are inherently more expensive than the status quo and require startup costs, ultimately, cycle costs need to try to get close to cost parity with today’s system. Solutions providers, brands, and retailers need to have a plan for bringing down the implementation costs of reusable packaging over time. If the cost of retrieving reusable packaging and redeploying it into the system, or running a refill program, remains more expensive than single-use, the solution won't scale. Ending a reusable packaging pilot for reasons such as cost not only diminishes brand credibility and frustrates engaged consumers, it may also result in a higher environmental footprint, since the reusable packaging will not have had a chance to reach high reuse rates. Guidance for Reusable Packaging | 42 Sales Data Companies should not use short term sales data as the primary measure of success. This is particularly true because changes to shopping behavior and personal care routines take time, and short term sales data may not reflect one-time or repeat purchases for some time. Short term sales data also does not guarantee ongoing participation by consumers, and is unlikely to be a good proxy for high return and refill rates. As noted in earlier sections of this document, few companies have outlined what portion of their sales they expect to convert to reusables. Companies can consider setting sales targets that represent a conversion from single-use to reuse as a way to measure whether reuse has displaced single-use, or simply extended the range and number of products consumers are buying. Guidance for Reusable Packaging | 43 Best practices: how to have a successful program Ultimately, the success of reusable packaging can be measured by three aspects of the package- product system: Success for Reusable Packaging Long-term consumer High return rates Lower environmental engagement in practice footprint [Figure 11] Fig [11]. Success for reusable packaging relies on long-term consumer engagement, high return rates in practice, and lower environmental footprint Guidance for Reusable Packaging | 44 Questions to ask about reusable packaging The following questions are designed to help companies explore the wide range of considerations surrounding reusable packaging, determining whether reusable packaging is the right fit and how it may be designed more sustainably. Reuse Scoping and R&D Consider the following questions to determine if there is a strong case for reusability. Being able to answer as many of these questions as possible before a pilot is launched can improve the likelihood that the three objectives of reusable packaging - high return rates in practice, long-term consumer engagement, and lower environmental footprint - will be met. Is this a good idea for my category? Does the reuse system have a lower environmental impact than the impact of single use packaging? What is the likelihood of high consumer participation and high return rates? Are we adding new products, or are we replacing single use packaging with reusables? What is the expected return rate for the package? Would a broader redesign of the product/package system be more impactful? What will we do if the program “fails”? Will we landfill all the reusables and related assets such as dispensers? Guidance for Reusable Packaging | 45 What other problems can I solve with reusable packaging? What other benefits can I offer consumers? Can I solve operational challenges/inefficiencies? (e.g. have to use box cutters, stacking/space issues, taring/pricing/sanitation in bulk areas) Can I solve food waste challenges? (e.g. make food more appealing or store it better, improve product evacuation, extend shelf life, etc.) Can I offer cost savings to the consumer? Can I offer new benefits? (e.g. personalization, loyalty program) What is the environmental impact of the reusable system, considering… The materials used for the new reusable packaging, including replenishment The reverse logistics, including transportation, washing The system with low reuse rates - e.g. if consumers just try it once or twice The system with medium reuse rates - e.g. 20-70% The system with high reuse rates - e.g. 90% Program Set-Up and Consumer Participation Thinking through the following questions can increase the likelihood of high consumer participation and establish realistic expectations for sustained program costs. How many consumers will participate in the program? How many customers will switch to the reusable version of this product? (e.g. what is the expected adoption rate?) How many consumers will engage in repeat ordering? At what frequency? Will this be appealing to dark green consumers or all types of consumers? Are there financial/access barriers like deposits, credit card holds, setting up accounts, needing an app, etc.? How long is the product typically used by the consumer? How much of a refill product will a customer purchase? How frequently will a customer purchase a refill? What will the reuse program cost? Set-up costs (e.g. physical costs of containers, displays and other infrastructure, etc.) Ongoing costs (e.g. employee training, transportation, redistribution, cleaning, replacement, etc.) What internal operational changes will be needed? Staff training, distribution/warehouse changes Payment/tech changes (e.g. apps, payment processes) How it is displayed/sold in retail (e.g. in a reuse “block” or on shelf with non- reusables) Guidance for Reusable Packaging | 46 Material Sourcing Consider the following questions to evaluate and better understand the tradeoffs of common material choices for reusable packaging, such as plastic, aluminum, and glass. What material will be used? Does it include recycled content? Are there relevant certifications available for this material (e.g. USDA certified biobased content, Recycled Material Standard)? How much does the package weigh? How much heavier is the reusable system over the traditional packaging? What chemicals of concern may be present in the material used? What is the risk of these chemicals migrating into the package contents, particularly if the packaging will be used to heat or store food long-term? Were any chemicals of concern used in the manufacture of the packaging, e.g. as processing agents or lubricants? Has the material been screened using any material health tools (e.g. GreenScreen, SciveraLens, etc.)? Can a sufficiently durable material be sourced? How many uses (or “cycles”) in the program will this material choice sustain? What additional benefits can this material deliver? Is it enjoyable to use, “rememberable”, lightweight, counterworthy, beautiful, etc.? Reverse Logistics The following questions can help to outline and assess the environmental implications of various reverse logistics associated with reusable packaging, such as returns, refills, and sanitization. Who will be my “solutions provider” partners (e.g. dispenser company, take-back company, cleaning company)? What is the cost of their services? What service levels will be needed (e.g. frequency of cleaning, shipping of containers back and forth, restocking, etc)? Refill logistics - direct-to-consumer: What material is the refillable insert/sachet/etc. made out of? What is the weight of the refillable insert/sachet/etc.? Is the refillable insert/sachet delivered to the consumer via disposable secondary packaging? If so, what is the weight and material of the secondary packaging Guidance for Reusable Packaging | 47 Refill logistics - in-store: What materials were used to produce the refill station/machine? What is the energy use of the refill station/machine? What is the end-of-life pathway for the refill station/machine? Return logistics: What is the expected amount of float (extra containers) that will need to be maintained by the business? What is the weight of the packaging being returned? What is the weight and material of the return infrastructure (e.g. kiosk, station, machine)? What is the distance traveled by the empty container? Are there additional components that are disposable (e.g. seals, stickers, labels)? Sanitization: What is the amount of water/cleaning solution required to sanitize each package? Are any chemicals of concern used during the cleaning/sanitization? What is the energy required to sanitize each package? How will you communicate sanitization and safety to your customers? Disposal It is important to consider that reusable packaging will eventually reach its end-of-life and will need to be disposed of properly. What will be the end-of-life pathway for the durable reusable packaging? (e.g. manufacturer take-back, curbside recycling, store drop-off, composting, landfill) What are the recycling rates for this material/product category? Is there a disposable insert or other components? If so: What is its end-of-life pathway? What are the recycling rates for this material/product category? Learn more: Design Guidelines and Safety Guidelines for Reusable Packaging, World Economic Forum - resources that aim to coalesce the most important considerations designers should take into account for reusable packaging. PR3 Reusable Packaging System Design Standard, RESOLVE - a draft standard to integrate and support reuse initiatives for the long haul, offering broad strokes and detailed requirements on how to integrate and build the complex needs of reuse infrastructure Guidance for Reusable Packaging | 48 Conclusion While reusable packaging has been in place for many decades for certain product categories like beverage containers and secondary packaging in produce, for other categories like personal care, reuse is still in the early phases of adoption. There remains more to learn from trials to unlock the potential of reusable packaging, and standards and innovation are still evolving in this space. Given the many considerations for reusable packaging, it’s clear that it is not a one-size-fits- all solution to replace all types and formats of single-use packaging. Rather, because reusable packaging requires more materials and transportation, its success from a sustainability standpoint hinges on high levels of reuse or refill in practice by engaged consumers. It may not be the right fit for every category of packaging, and the environmental impacts should be weighed against the impacts of single-use packaging. We hope that this guidance helps companies understand the various types of reusable packaging, determine what their internal goals for reuse are, consider how consumers interact with reuse, and ultimately implement best practices for their reusable packaging innovations. With more careful consideration of the “why” and “when” around reusable packaging, it will be possible to achieve a more successful and sustainable transition to reusable packaging. when drafting the new regulations and revised definitions for reuse, refill, reusable, and refillable. The agency also clarified that washable in reference to reusable or refillable packaging means:

“It can be sufficiently washed if necessary, for it to be safely and hygienically refilled or reused over its entire lifespan while retaining its shape, structure, and function. At a minimum, it must be feasible for the packaging to be washed and reused throughout its entire lifespan without violating any federal, state, or local laws concerning safety or hygiene.” 

What’s already in California’s EPR legislation?

California’s EPR legislation, SB 54 or the Plastic Pollution Prevention and Packaging Producer Responsibility Act passed in 2022. Once implemented, the law will require cutting single-use plastics by 25%, recycling 65% of single-use plastics, and ensuring 100% of single-use packaging and plastic food ware are recyclable or compostable.

Where can I learn more about these changes?

To learn more about California’s EPR implementation, you can check out this article covering the latest rulemaking comment period.

2. The EU Deforestation Regulation Seeks Delay Until 2025

What is the EUDR?

The European Union Deforestation Regulation (EUDR) is a rule requiring that certain products sold in or exported from the EU market are deforestation-free. The regulation covers seven types of products or product derivatives: cocoa, coffee, cattle, oil palm, rubber, soya, and wood.

What’s the latest on the EU Deforestation Regulation?

Passed in 2023, the EUDR was initially slated to begin at the end of 2024. This month, the European Commission proposed a one-year delay of the rule’s implementation. If the delay is approved, large corporations won’t be obligated until December 30, 2025.

What does the EUDR look like in action?

The EUDR has sweeping packaging implications. Pulp and paper are two examples of product derivatives covered in the regulations. Once the EUDR is implemented, these materials will be subject to the rule’s due diligence requirements to ensure that they’re deforestation-free.

Although the proposed delay has not been officially approved yet, any company that sells products into the European Union will be required to follow the regulation once it’s implemented.

Where can I learn more about this bill?

You can learn more about the proposed EUDR delay in this alert. To learn more about the regulation’s scope, we recommend checking out this EUDR fact sheet.

3. New Jersey Senate Amends Recyclability Labeling Bill

What’s the status of this legislation?

New Jersey’s Recyclability Labeling Bill, or Senate Bill 224, would prevent the sale of certain products labeled as “recyclable,” unless certain recyclability conditions determined by the NJDEP are met.

SB 224 was amended late last month in the State Senate.

What are the amendments to New Jersey’s SB 224? 

The latest amendments include a direction of the NJ Department of Environmental Protection (NJDEP) to contract with “a Statewide nonprofit recycling association to develop, maintain, and update at least every two years, a list of commonly discarded packaging and products.”

Additionally, the amendments reduce the amount that is annually “allocated to institutions of higher education for recycling demonstration, research, or education” from 5% to 3%. The 2% difference would then be allocated to the State Recycling Fund to develop the aforementioned list.

What’s next for New Jersey’s Recyclability Labeling Bill? 

Because the New Jersey State Legislature operates on a two-year term, the bill has until the session’s end (January, 2026) to pass.

Where can I learn more about this bill?

To learn more about the bill and the latest amendments, you can visit the state’s legislative website.

4. Update: California Closes Plastic Bag Ban Loophole

What happened to California’s plastic bag ban?

On September 22, California passed a law closing its plastic bag “loophole” that allowed stores to provide customers with thicker “reusable” plastic bags. Read more about the rule revision in our previous Policy Roundup, and learn about its passage here.

September packaging policy roundup

1. Maryland’s EPR Needs Assessment (SB 222) Moves Forward

What’s the status of this legislation?

This legislation actually passed in 2023. Now, the state’s Advisory Council will report findings and recommendations on moving the legislation forward on or before December 1, 2024. At that point, the Council will share its Needs Assessment with Maryland’s Governor, Senate, and House environment committees.

What does this bill do?

Maryland’s SB 222, or the “Statewide Recycling Needs Assessment and Producer Responsibility for Packaging Materials” is an EPR Needs Assessment bill.

This legislation compels the Maryland Department of the Environment to take three key steps. Check out the steps and their statuses:

  1. Form an Advisory Committee: Done. The state’s Committee meets regularly. 
  2. Select a PRO: Done. The state chose the Circular Action Alliance (CAA) in October 2023.
  3. Conduct a Needs Assessment: In progress. The state selected its contractor, HDR Inc.,  in July, and has begun work on the Needs Assessment. 
What’s next for Maryland’s EPR Needs Assessment?

Although the Needs Assessment work was delayed throughout the Spring, as of July 2024 the chosen contractor HDR Inc. has been working on the project. HDR is planning to conduct field work and waste characterization in October, and provides monthly updates to the state’s Advisory Committee.

Where can I learn more about this bill?

To learn more about Maryland’s SB 222, you can check out the state’s EPR webpages here as well as the Youtube channel where Advisory Council meetings are posted.

What’s the deadline for CAA registration in Colorado? 

The Colorado Department of Public Health and Environment (CDPHE) has set a new deadline of October 1, 2024 for producers to register with CAA.

The deadline registration was previously set for July 1, 2025.

Why was the registration deadline moved? 

Earlier registration helps reduce the amount of “free ridersLET’S RESHAPE EPR for a game changing policy tool that supports prevention, reuse, separate collection and high-quality recycling Janine Röling (RNB) & Axel Darut (Minderoo) BACKGROUND The tool of EPR has been widely recognized and celebrated as being an effective way of mak- ing producers responsible for products (and their subsequent waste) they produce. On the one hand, based on a partnership between companies, municipalities and waste managers, it allows the financing of the public service of waste management by producers, while reinforcing its effi- ciency. On the other hand, it could potentially encourage companies to enter a circular economy logic in the design of their products thanks to instruments like eco-modulation, thereby favoring products with a smaller environmental footprint. So far so good, right? Unfortunately, not really. Due to the way EPR legislation is set up, combined with execution that is oftentimes flawed, the full potential of EPR has not yet been reached and producers are insufficiently held accountable for environmental damages they cause. Where EPR has been moderately successful in managing the end-of-life stages of products (better sep- arate collection and recycling), it has not been effective in significantly changing the full lifecycle of products, i.e. creating more sustainable products and preventing waste. While the latter is in line with the original academic definition of EPR, some might argue that this is also not the goal of EPR, but rather a sole focus on waste management. We would beg to differ, specially in a context where ten member states are at risk of missing the recycling targets for both municipal waste and total packaging waste. In this context, it’s essential to acknowledge that addressing the global packaging crisis goes beyond solely focusing on waste management. Instead, it ne- cessitates significant reductions and the phase-out of environmentally harmful products. In this paper, we propose concrete legislative measures that advance the working of EPR, mak- ing it an effective environmental tool that helps to achieve reduction, prevention, separate col- lection and closed-loop recycling targets for a broad range of product categories (at the least packaging, textiles and electronic products). Relying solely on EPR will not be adequate in mini- mizing the environmental impact of products throughout their entire life cycle. However, when complemented by an appropriate legislative framework, EPR can unlock its full potential. Both the Packaging and Packaging Waste Regulation revision and the Waste Framework Direc- tive revision currently negotiated at the European level provide an opportunity for change. Let’s include a clear, ambitious vision for the future, in which EPR tackles not only the end of life stage of products, but systematically changes the design of products and their environmental impact according to the waste hierarchy. The EPR-schemes of the future need better governance, more transparency, clear enforceability and democratic inclusion of stakeholders. This collective effort is needed for the circular economy to strive. 1 CONCEPT OF EPR EPR-schemes are often set-up based on the polluter-pays-principle. As the name suggests, pol- luters - being those who put polluting products on the market, are held accountable for the environmental costs of their management. Principle 16 of the Rio Declaration (1992) defines it as the ‘’internalization of environmental costs and the use of economic instruments, taking into account the approach that the polluter should, in principle, bear the cost of pollution, with due regard to the public interest and without distorting international trade and investment.” Following this principle, the European Union defines Extended Producer Responsibility (EPR) as “a set of measures taken by Member States to ensure that producers of products bear fi- nancial responsibility or financial and organisational responsibility for the management of the waste stage of a product’s life cycle”. The OECD’s definition varies slightly to the extent that they view the EPR-schemes as “organizational mechanisms for the prevention and management of waste”. The latter adds the crucial concept of waste prevention, which is deemed as most effec- tive from an environmental point of view. While EPR legally makes individual producers responsible for the financial and/or organizational execution of the targets set within a given EPR-scheme, we almost always see a collective orga- nization of the responsibilities. So-called Producer Responsibility Organizations (PRO’s) are giv- en the responsibility to act on behalf of the producers. These organizations are set-up through European and national legislation in order to carry the financial and/or organizational respon- sibility of EPR. Responsible producers pay the PRO a fee per kilogram of product placed on the market, with which the PRO at least finances the waste management costs. When they also carry out the organizational responsibility, PROs set up or partially fund the collection and sort- ing infrastructure in cooperation with the municipalities and waste management companies. In most European Member States we see a single PRO per product stream, such as for packag- ing in the Netherlands or textiles in France. However, there is an option for competitive schemes, such as we see for packaging in Germany, Austria, Portugal or Poland. While UNEP agrees with the OECD definition to the extent that they see is a.o. waste prevention as part of the PRO mission, research has shown that current EPR-schemes do not focus on this. According to OECD, PROs aim to improve Design for Environment (DfE), yet there is only limited evidence that this has occurred so far. Given that producers pay a fee based on the amount of product they put on the market, EPR’s might look a lot like tax systems. However, there is an important difference. Contributions paid by producers are directly used by the PRO. Thus, this contribution didn’t require additional bud- getary resources from the State, and isn’t “absorbed” into the overall public expenditure. The EPR fee are used to directly fund the waste management system and are closely linked to the waste placed on the market by an individual producer. In this perspective the EPR fees are, or should be, directly linked to the costs of the system and then be paid directly to the PRO, and can be modulated to encourage environmentally friendly design choices. 2 Differences between operational and financial EPR schemes Municipalities are in charge of the waste e management Producer Collective Wast scheme Municipality management PROs have a financial company obligation : they collect fees from producers to support municipalities Collective Waste Producer scheme Municipality management Watse management activites are shared company PROs are in charge of the waste management Collective Waste Producer scheme management PROs collect fees from producers to company support the scheme Image 1 WHAT WE SEE HAPPENING IN PRACTICE The financial and/or operational responsibility on producers of specific product groups often re- sults in a focus on the end-of-life stage of products. While end-of-life management is important, the circular economy needs increased focus on the design, production and use-phase of prod- ucts. Our current consumption pattern heavily relies on single-use, throwaway products, gen- erating increasing amounts of waste. In order to turn this trend around, EPR-schemes should play their part. However, we see various obstacles that currently lead to this specific focus on end-of-life, namely: • The flawed governance of the Producer Responsibility Organisations; • The absence of harmonisation across Europe; • The non inclusion of non-european stakeholders; • The problem of free riders; • The inadequacy of the cost coverage provision. A MAJOR GOVERNANCE ISSUE In almost all cases, it makes sense to set up a so-called PRO who is made responsible for han- dling the EPR-fees (financial responsibility) and/or setting up the waste management scheme (operational responsibility). 3 Operationnal Partial Financial EPR scheme operational EPR EPR scheme scheme In this role, the PRO takes up a central position in the waste management scheme. Although they are given this responsibility through EU and national legislation and are supposed to mere- ly execute this environmental legislation, in practice we see a different result. PROs use their position of power to influence additional environmental policies, other stakeholders have a lim- ited say in processes like collection, reuse, recycling and height of the fees paid to municipal- ities. The consequences of the design of EPR-schemes is also recognized by the Netherlands Environmental Assessment Agency, who state that “while collective EPR offers advantages to producers, such as economies of scale and less free-riding, it dilutes eco-design incentives and may raise competition concerns”. Government Responsible for the legislation Governance? lobby (Relying on) activities Transparent data reporting Producer Responsibility Organisations Responsible for complying with national legislation through organization of collection and recycling Payment of the fee Board members Producers Image 2 Image 2 shows the way in which a PRO functions. In most cases, the board members of PROs exist solely of producers who fall under the EPR-scheme. These producers also pay the required fees to the PRO. The PRO in turn makes sure that national legislation is met through e.g. setting up collection and recycling schemes (depending on the targets in place) or merely financing existing waste management schemes. At the same time, national governments rely on PRO for the gathering of data on their specific product stream, as well as timely reporting. Producers - and thereby PROs - are often viewed as the main stakeholder in EPR-schemes. While this holds true to the extent that they are responsible for meeting the targets, they simultaneously have a stronger voice at the negotiating table when EPR-schemes are set up. This form of strategic responsibility should not be a case where national governments have regular discussions with PROs or producers only in order to set-up the framework of an EPR-scheme, but rather include a large group of stakeholders reflecting the different interests at play. Even though article 8a of the current WFD stipulates that member states have to ensure a regular dialogue between rel- evant stakeholders, this mostly happens as an afterthought. 4 The governance issues hamper the work of various stakeholders, such as recyclers, municipali- ties and environmental NGOs. EuRIC (the European Recycling Industries’ Confederation) recom- mends that “EPR Schemes provide adequate representation of the waste management and re- cycling sectors as a minimum requirement. This will ensure that there is an appropriate balance of interest amongst the most relevant actors in the value chain”. In a similar manner, Municipal Waste Europe argues that in the context of EPR for textiles, the scheme ”should be designed within a collaborative framework and with strong, transparent communication between all the players involved in the value chain and in the decision-making process (national/regional gov- ernments, municipalities and municipal waste operators, producers, retailers, sorters, recyclers, citizens, charities, social enterprises, research institutions, etc)”. It is important to specifically shed light on the governance issues around EPR-schemes, because they affect the functioning and effectiveness of EPR as a whole. As long as the set-up of the schemes are based on cost-effectiveness and the protection of the vested interests of produc- ers, the environmental outcome will be limited. In order to move beyond the end-of-life (EOL) management of products, the governance issues need to be tackled. Where the intentions of the Article 8a of the WFD do include greater transparency and better governance (see recital 21 and 22 of WFD), the actual outcomes on a national level fall short on these aspects. THE ABSENCE OF HARMONISATION ACROSS EUROPE The rules that EPR-schemes have to adhere to are laid down in the Waste Framework Directive. Given that it is a directive, Member States are given the opportunity to set up the schemes in a way that they see fit (e.g. (non)competitive, with(out) fee modulation, etc.) as long as they in- corporate the basic principles described in article Article 8a of Directive 2018/851 amending the WFD. The intention of the European legislators wasn’t necessarily full harmonisation – although there is a provision for implementing acts to ensure harmonisation if desired or required. As a result, both the extent and implementation of EPR have diverged among different Member States. Indeed, European countries are using various systems and rules for EPR schemes, and this vari- ation extends to other countries in the European Economic Area and major EU trading partners. This means that product scope, cost coverage, fee structure (categories and granularity), fee modulation criteria, and reporting requirements are inconsistent between EU countries. Furthermore, as illustrated by a recent study led by Adelphi, according to the experiences of Member States, the competition for access to waste is resulting in inefficiencies and higher costs because some actors may purposefully exceed their obligations and speculatively sell the excess quantities to other PROs who would otherwise be unable to meet their collection quotas. In this perspective, the EPR policies implementation has led to a fragmented approach of this instrument, limiting its impact while increasing the administrative burden on producers, espe- cially those placing products on the market in multiple EU countries. The current WFD proposal introducing EPR for textiles lacks harmonization provisions, opening the door for fragmented implementation and executions between Member States. THE NON INCLUSION OF STAKEHOLDERS OUTSIDE THE EU Most EPR-schemes are part of national legislation, and typically, these schemes do not look beyond the borders of the Member States or Europe. This limitation becomes evident when considering exports, as also shown by recent studies by a.o. EEB and Utrecht University. EPR- 5 schemes do not take into account that when products are shipped abroad, producers effectively get a free pass for any type of end-of-life management costs. Although the Basel Convention prohibits the export of hazardous waste (like end-of-life vehicles), research shows that end-of- life products are often disguised as ‘reusables’ in order to be exported. Instead of being placed on the producers, the financial burden is then shifted onto the receiving country. Given that producers will look for ways to keep their costs as low as possible, especially in competitive EPR- schemes, this loophole undermines the effectiveness of the EPR-legislation. For a circular and sustainable economy to work, we need inclusive policies that do not only look at the wellbeing of the environment and societies within Europe, but also beyond. Also, as second-hand products are exported from the EU to third countries for reuse, the asso- ciated EPR fees paid by producers to support waste management costs too often fail to follow these products and are retained in the exporting countries (notably for used electronics, vehicles and textiles). This deprives importing countries of the adequate financial support to manage the products once they inevitably reach their end of life and need to be collected, disassembled, re- paired, decontaminated, recycled or finally disposed of. Recent research on the exports of used electronics and vehicles from the EU to Africa estimated that every year African economies miss out on € 340 – 380 million in EPR fees associated with second-hand electronics, and on € 294.6 – 409.4 million in EPR fees for second-hand vehicles. However, EPR fees traveling with exported second-hands goods should not incentivise the export of waste, disguised as reusable goods, to be managed in the Global South at lower costs in comparison to the EU. THE FREE RIDERS EFFECT Free riders are defined as “those producers who benefit from EPR systems without contributing their share of the costs” (OECD, 2016). Yet they still benefit because their products are likely to be collected for recycling along with products from sellers who are compliant and who have con- tributed financially to waste management schemes. Free riders gain an unfair advantage over law-abiding competitors. There are various ways in which producers can be non-compliant with EPR obligations. These include seeking to minimise financial contributions through under-reporting, not registering with a national register or not signing up to a PRO. Free-riding is a problem as it distorts the mar- ket by providing a competitive advantage to those companies who avoid full EPR compliance. Free-riding also reduces the accuracy of data reporting and where placed on the market figures are underestimated, recycling rates may be overestimated. It may also result in the underfund- ing of waste management systems. Free-riding is a growing challenge for sales made through online, multi-seller platforms. Indeed, a study published by the Organisation for Economic Co-operation and Development (OECD) in 2018 first showed that online multi-seller platforms are a major contributor to free-riding, as 5% to 10% for the electronic and electrical equipment sales. As underlined by the European Commission recently on its guidance for the compilation and reporting of data on packaging and packaging waste according to decision 2005/270/EC, this finding was re-affirmed by a larger unpublished study leaded by Eunomia on EPR free-rid- ing in online marketplaces conducted in 2021 for DG Environment. The most significant free rid- ing problem in terms of volume appears to relate to large and well-known multi-seller platforms with fulfillment centers in the EU. 6 INADEQUATE COST COVERAGE The fact that producers pay for externalities of their products, like waste management, does not create sufficient stimulus to redesign products. This has been greatly emphasized by several researchers (Gottberg et al., 2006; Huisman, 2013; Kautto, 2006; Kemna, 2011; Kunz et al., 2018; Mayers, 2007; OECD, 2006; Subramanian et al., 2009; Tojo, 2006). According to Utrecht University (UU) this has two reasons: first of all, collection and recycling is set up in such an efficient way that it costs less than 2% of the product price (sometimes even as little as 0,1%). We should note here that producers are only responsible for the fraction of waste that is separately collected, meaning that they are not responsible for the fraction that ends up in the residual waste. So far, most EPR-schemes ignore this perverse stimulus where producers get a free pass for waste that is not separately collected. Secondly, the UU argues that EPR-schemes need to incorporate a reward system for design changes. When this is not the case, the producer does not benefit di- rectly from making design changes and is therefore less inclined to do so. Even for schemes with eco-modulated fees, where producers who e.g. design for reuse / recycling or include recycled content in their products pay lower fees, the fee differentiation is often so small that it does not encourage producers to take those steps. An assessment of current EPR practices for the product streams of packaging, WEEE, batteries and textiles show that EPR and eco-modulation of fees) are currently focused almost exclusively on waste management (collection and recycling), instead of driving waste prevention (by pro- moting reusability, durability, reparability). Further, EPR fees and hence eco-modulation does not consider the full social and environmental costs associated with the products, thus failing to adequately implement the polluter pays principles for these products streams. These issues stem from the current cost coverage of EPR systems which is based on the limited concept of “necessary costs” to deliver the expected service of meeting the regulatory collection and recycling obligations (disciplined in art. 8 and 8a of the Waste Framework Directive) and seeks to minimize the costs (by essentially only including the costs incurred to improve recycling and collection). In the pursuit of cost minimization, the EPR fee generally becomes too low to effectively implement the PPP principle and encourage producers to design products, which have high environmental performance regarding waste prevention and reusability. A systemic revision of the EPR regime currently set in the Waste Framework Directive is therefore a precon- dition to unlock the full potential of Extended Producer Responsibility in applying the Polluter Pays Principle. This should include a revision of the EPR cost coverage, overall size of the fees, use of the revenues, governance of the Producer Responsibility Organisations, and be accompanied by ambitious regulatory targets focusing on waste prevention and reduction of pollution along the whole life cycle. 7 RECOMMENDATIONS FOR THE EU LEGISLATORS exploiting the full potential of EPR for the circular economy Extended Producer Responsibility is a key component of the European Commission’s environ- mental and industrial policy package. EPR is one of the instruments to scale up the circular economy in Europe, with the ultimate aim of climate neutrality by 2050. It is also a crucial policy to cover the costs of products at their end-of-life stage, meeting high recycling and product performance targets, and improving the management of resources in order to follow the waste hierarchy principles. In this perspective, the European Union should maximise the effectiveness of EPR and increase the benefits that schemes aim to deliver. Moreover, coordinated EU-level action is necessary to avoid distortions to the single market, a risk which is likely to increase given the potential expan- sion of EPR to more products. Below we outline the actions we deem needed to improve the tool of EPR, making it a game changer for circular economy goals. IMPROVE GOVERNANCE FOR EPR-SCHEMES As mentioned above, the central position that PROs take within EPR-schemes, lead to undesir- able outcomes. The revision of the WFD needs to tackle the problems around the governance of EPR-schemes, in order to make existing and to-be-introduced EPR-schemes more effective, more democratic, and better enforceable. Improving EPR-regulation under the WFD, will in turn lead to more effective EPR under the PPWR. In order to achieve better governed EPR-schemes, we need a new reality in which: • PROs will no longer use their strategic position to lobby against ambitious environmental policies at the national and European levels in order to protect the entrenched/established interests of their corporate members; • The governance structure of PROs will be addressed to ensure that stakeholders such as gov- ernments, environmental organizations, and waste processors are included in a democratic and transparent way in policy processes, the set up of contracts and fees, and decisions on strategy (such as efforts to increase circularity); • (National) governments, in turn, will take more control and ensure that a broader group of stakeholders is involved in policy design and more stringent criteria are set up for PROs; • Efforts by PROs to shift responsibility for (litter) waste onto consumers, for example, through clean-up campaigns, will be discouraged; • PROs will no longer be difficult for governments to monitor, as governments will have access to sufficient data from the PROs (e.g. on financial streams) as a result of increased transpar- ency. The revision of the WFD needs to create the legislative conditions in which the scenario outlined 8 above becomes a reality. The current revision proposal leaves out the amendment of Article 8(a) altogether, thereby ignoring the possibility of improving EU-wide EPR schemes. REDEFINE THE ‘PRODUCERS’ NOTION TO INCREASE ENFORCEABILITY We ask the European Commission to set up a new definition of producers in order to have brands and distributors no longer solely responsible. We see that the fact that only part of the value chain is held responsible for reaching the targets - namely the producers - leads to en- forceability issues. In the Netherlands, for years, PRO Stichting Afvalfonds Verpakkingen failed to meet the glass recycling targets. However, this failure never resulted in enforcement or sanc- tions. Through a lawsuit in 2019, Recycling Netwerk Benelux attempted to compel the Dutch government to take action when Afvalfonds Verpakkingen did not meet the recycling targets for glass. Ultimately, the Council of State decided that the PRO could not be held responsible for this because they depended on third parties (such as municipalities) to achieve the targets. A redefinition and a broader scope of the responsibility, as mentioned above, will ensure a dem- ocratic representation and better cooperation between PROs, municipalities, waste companies and civil society to ensure costs coverage, prevention and high-quality recycling. REDEFINE PROS MISSIONS - BEYOND WASTE MANAGEMENT The EPR principle is well recognised by the European Union as a key policy to accelerate the cir- cular economy. The tool plays an important role within the Waste Framework Directive and the PPWR. Given that both are currently under negotiations, we recommend redefining the mission and workings of EPR, in order to push the PROs to focus their efforts on prevention, reduction and reuse. In this perspective, we call on EU co-legislators to ensure that PROs cover the full costs, to bet- ter apply the polluter pays principle, to shift the financial responsibility from public authorities and taxpayers to producers in line with article 8a of the Waste Framework Directive, in order to maximise the impact of EPR. Indeed, the mission of the PROs should be to address reduction, reuse and recycling in the circu- lar economy, while playing a key role in the fight against climate change, the preservation of re- sources and biodiversity, and the reduction of carbon impact of products placed on the market. In this perspective, we recommend to include in the cost-coverage scope: • Collection, transport and treatment costs for separately collected waste; • Collection, transport and treatment costs for non-separately collected waste covered by EPR; • Public communication and awareness raising campaigns costs, including on reduction, re- usability options, waste prevention, separate collection systems and sorting instructions; • The littering, prevention and awareness campaigns costs - by taking inspiration of the article 8 of the SUP directive on EPR; • Costs for the appropriate control of the system, including auditing and measures against free riders (cf linked with the proposal below); 9 • Administrative costs, which means the costs linked to the running of the organisation, data reporting and enforcement activities; • Fund for change: PROs should dedicate a percentage of their budget to support the devel- opment of new circular economy sectors, focusing on reduction, reuse and repair. This is already happening in France, and being discussed in the negotiations on the international plastics treaty and revision of the PPWR. ENSURE HARMONISED PRINCIPLES ON THE FEE STRUCTURE AND THE ECO-MODULATION We ask the EU legislators to include harmonised principles for the fee structure of EPR and eco-modulation. These principles should be driven by the principles of the waste hierarchy to prioritize preven- tion, reduction, reusability and recyclability while avoiding undesirable side effects. One of the possibilities is linking the granularity of the eco-modulated fees to the sustainability require- ments of products as will be laid down in the Ecodesign for Sustainable Product Regulation. In this perspective, establishing granular fee structures for products which are harmonized across all Member States will support the provision of consistent data, better traceability, reduce reporting burden for producers and help tackle the challenge of free-riding and exported waste without paying the full externalities. A prerequisite for ensuring effective eco-modulation, also includes revising the cost-coverage principle (see above). The harmonized fee modulation principles across the EU market would have significant impact at the design stage. This position is supported by key stakeholders, as evidenced in Eunomia’s 2020 report for the Commission on guidance for EPR schemes. In this perspective, the eco-mod- ulation system should be designed as simply as possible, with practical implementation in mind and prevention and reduction key objectives. Furthermore, EPRs also exhibit shortcomings in adequately addressing the quantity of items introduced to the market. To promote a circular economy and combat overproduction, partic- ularly in fast fashion, EPRs should stipulate progressive fees linked to the number of new items placed on the market every year. This approach would incentivize a focus on quality over quan- tity and encourage practices such as leasing, repairing, and reusing existing items. The mar- ginal cost of placing additional new items on the market would increase as more new items are placed on the market. In addition, a specific threshold for the quantity of new items placed on the market should be set. Above that threshold, any bonuses linked to eco-modulated fees would be canceled. FIGHT AGAINST FREE RIDER, ESPECIALLY THE E-COMMERCE STAKEHOLDERS There are many different routes products purchased online take before reaching European cus- tomers. This often involves online marketplaces and fulfillment service providers. As underlined above, heterogeneous definitions in existing legislation, such as manufacturers, importers, distributors and dealers, are not well adapted to the online reality, especially when traders are located outside of Europe without an EU-based importer which contributes to the free riders effect. 10 In this perspective, it is critical that EU legislators ensure that there is a level playing field for pro- ducer responsibility including for imported goods sold online. Marketplaces and platforms should have distinct obligations to ensure that the traders they host comply with producer responsibil- ity rules or have liable economic operators within the EU or EEA before a sale can be processed. Enforcement on non-EU retailers who sell directly to EU consumers should be increased, with the potential to block parcels and/or their vendors’ sites which demonstrate non-compliance. RECOGNISE (MANDATORY) DRS AS PART OF EPR POLICY As underlined by the OECD in its last circular economy report, deposit return systems (DRS) have proven to be effective in increasing collection rates and reducing littering. Countries are increas- ingly interested in implementing DRS for a range of products (besides packaging, also batteries and textiles), combined with other EPR policy instruments covering broader waste streams. The best performing deposit systems in the world, manage to reach over 90% return rate for packaging. In order to reach this, the systems must prioritize people at their core, both in their design and implementation. It’s the level of public engagement, or its absence, that ultimately determines whether a DRS achieves success or failure. Over time, DRS has proven to be the most effective tool for increased collection rates and high-quality recycling. Furthermore, the DRS infrastructure can enable reuse systems by giving consumers an incentive to return products, thus facilitating the necessary physical movement between consumers and producers. DRS also helps to diminish littering and influence consumer behavior, which is difficult to ad- dress with other mandatory EPR policy instruments. As key examples : • In Australia and US, the coastal debris surveys showed that the proportion of beverage con- tainers littered on the coasts was 40% lower in states with a DRS legislation for these contain- ers than in states without a DRS; • In Estonia, after the introduction of a DRS for beverage containers, the share of beverage con- tainers amongst littered items along roadsides dropped from 80% to below 10% according to the global deposit book of Reloop; • In Germany, the share of beverage containers amongst total litter dropped from 20% (in 1998) to “almost zero” two years after the introduction of a DRS on one-way beverage containers in 2005. The functioning of the DRS depends on a set of criteria. According to Eunomia, these are: a) the value of the deposit, b) convenient return possibilities, c) a straightforward and consistent design, d) clear communication towards the consumer. Additionally, in order to ensure its suc- cess, European regulation should clearly define the product scope of mandatory DRS to avoid any unintended substitution effects. Policies that define the scope of a DRS based on certain materials leave more opportunity for producers to change materials in product design to avoid participation. Policies that instead specify the scope based on product groups may be better suited to avoiding possible substitution effects. 11 COMBINE THE POTENTIAL OF EPR WITH OTHER ECONOMIC POLICIES As recently underlined by the European Investment bank and the european commission in a joint report ‘’Cutting plastics pollution Financial measures for a more circular value chain’’, the combination of financial and economic incentives is crucial to close the loop of the plastics value chain. Such policies include EPR systems as well as price incentive to improve the competitive- ness of the recyclate and quotas on recycling. Current taxation systems continue to support a linear ‘take-make-waste’ economy creating an uneven playing field for circular business models. In combination with improved EPR, fiscal in- struments and other forms of price-based measures can also play a key role to improve the circularity of the European economy and reduce resource consumption to bring it in line with planetary boundaries (see EEB study on Circular Taxation, 2022). To support the transition to a just and circular economy, fiscal action is needed both at national level and in an EU context. A number of countries have already started taking steps towards the use of fiscal instruments to stimulate waste prevention, reuse, recycling and material efficiency. However, while the role of fiscal and economic instruments to stimulate circularity has been on the EU agenda for some time, including the recent commitment in the new Circular Economy Action Plan, a systematic approach to the subject across Europe is still missing. The adoption of harmonised fiscal instruments within the EU could enable the application of the much-needed incentives for the circular economy, whilst safeguarding public revenue streams and ensuring social equity, as underlined by a recent study by Eunomia and the European Envi- ronmental Bureau. The EU could, for example, play a key role in setting harmonised minimum tax rates for a broader range of resource uses beyond energy products, issue recommendations on the use of revenues from new circular taxes to lower labour taxes as well as further develop existing circular econom- ic instruments (e.g. EU own-resource on non-recycled plastic packaging waste). Therefore, EPR policy alone couldn’t support the transition to a circular economy by prioritising prevention, reuse and competitivity of recycled material. The EPR measures need to be complet- ed with: • A tax on virgin resource use. As an example in the textile industry. Synthetics currently make up 69% of all fibre production, and if the industry continues on its current path, they will ac- count for 73% of all fibre production by 2030. A virgin plastic tax could help shift the market away from over-reliance on fossil-fuel-derived synthetics, account for the negative impacts of such materials (microfibre release, fossil fuel extraction and non-biodegradability at the end of life) and level the playing field with other fibres, which are more expensive than synthetics. • Taxation in combination with fee modulation as described above to further incentivise behaviour change and drive the use of secondary materials in manufacturing, implement eco-design and decrease consumption • Lower VAT-rates on products based on circularity criteria such as recycled content, could have positive environmental effects by supporting circular economy and shifting consump- tion patterns. A reduced VAT rate on products made from recycled materials or those that are 12 easily recyclable can promote the transition to a circular economy. By making recycling, re- pair, or reuse more financially appealing, it can incentivise the adoption of sustainable waste management practices and reduce waste generation. As recently proposed by Czech Re- public to the Council of the European Union, a lower VAT rate for recyclates / recycled prod- ucts is a possible economic tool to promote the circular economy. Indeed, the environmental benefits of replacing extracted raw materials with recycled materials are not internalized in prices, although they are often the most important factor in consumers’ choices and public procurement. Therefore, fiscal incentives in the form of lower VAT rates could have major role to play in better rewarding environmental benefits and in stimulating sustainable consum- ers’ choices by increasing the price competitiveness of sustainable products. FOR MORE INFORMATION, PLEASE CONTACT: • Janine Röling | EPR Researcher and Policy Officer | Recycling Netwerk Benelux janine.roling@recyclingnetwerk.org • Axel Darut | European & International affairs advisor Circular Economy | Minderoo Fondation adarut@minderoo.org SIGNATORIES 13,” or producers who benefit from EPR systems without contributing their share of the costs. It also helps CAA set the program’s fee schedule, giving the PRO time to get more specific data on producers.

Plus, after July 1, 2025, obligated producers who don’t participate in the program are prohibited from selling products in Colorado—so it’s better for producers to register earlier, too.

What’s the status of this legislation?

Colorado’s EPR legislation passed in June 2022, and the state is currently implementing the legislation. CAA’s Program Plan to CDPHE is due on February 1, 2025.

Where can I learn more about Colorado’s EPR legislation and if I’m an obligated producer?

You can learn more about the registration process on CAA’s website, as well as in this slide deckCAA Consultation Session 9: Eco-Modulation September 12, 2024 The views expressed in this presentation are those of the speakers and do not purport to reflect the views of any individual members of the Board of Directors or Circular Action Alliance. Statements contained in or conveyed by this presentation are for informational © 2024 Circular Action Alliance. All rights reserved. All third-party company names and logos used in purposes only and subject to change without prior notice. this presentation are trademarks (TM) or registered trademarks (®) of their respective holders. Legal Disclaimer The information provided in this presentation does not, and is not intended to, constitute legal advice. Circular Action Alliance is not an attorney nor law firm and does not provide legal advice or recommendations. Information in this presentation is not a substitute for the advice of an attorney. No reader should act or refrain from acting on the basis of information in this presentation without first seeking legal advice from your attorney. All liability with respect to actions taken or not taken based on the contents of this presentation are hereby expressly disclaimed. DRAFT FOR CONSULTATION 2 Anti-Trust Reminder Circular Action Alliance is subject to federal, state, and international antitrust/competition laws and has a policy of strict compliance with these laws, without exception. These antitrust laws prohibit competitors from engaging in actions that could result in an unreasonable restraint of trade. Consequently, competitors must avoid discussing certain topics when they are together, meeting virtually, or at any other time: • Prices, fees, rates, profit margins, discounts, promotions, rebates, or other terms or conditions of sale; • Pricing strategies, methods, trends, plans, or timing of price changes; • Salaries, costs, and other factors that affect pricing; the hiring or recruitment of other members’ employees; • Allocation of markets or customers or division of territories; topics that may lead participants to not deal with or to boycott a particular supplier, customer, or third party; • Reductions of output; bid-rigging; • Or any other anti-competitive topics or actions. Failure to comply with these antitrust laws will not be accepted. DRAFT FOR CONSULTATION 3 1. Housekeeping 2. Introductions 3. Context • EPR Overview Meeting • CAA Overview Agenda • EPR in Colorado 4. Program Plan Development • Base dues modulation • Producer level modulation 5. Questions and Feedback DRAFT FOR CONSULTATION 4 Team Introductions Juri Freeman Alex Chan Jessica Lally CO Executive Director CO Advisor HDR Moderator DRAFT FOR CONSULTATION 5 Welcome - Important Reminders • The presentation will not be recorded, but briefing notes and presentations will be available on CAA’s Colorado webpage – https://circularactionalliance.org/co-consultation • Notes will be taken on all comments and questions and will be summarized within the submitted proposed Program Plan. • A survey will be available after each session, which we ask to be completed within 30 days. • Please place all questions and comments in the Q&A box. We will work through as many as we can. • In order to get through all of the presentation content and as many questions as possible, all participants will remain muted throughout the session. • CAA will be discussing the Program Plan development at the Advisory Board meetings, which anyone can register for and attend: https://cdphe.colorado.gov/hm/epr-advisory-board • Contact CAA to provide additional feedback or ask questions: coplanconsultation@circularaction.org DRAFT FOR CONSULTATION 6 Session Topics and Groups Consultation Session Topics Stakeholder Groups 7/30 Minimum Recyclables List, Minimum Collection Targets, Producers and Recycling Rates Haulers 8/1 Education and outreach program Material Recovery Facility Operators 8/6 Producer responsibility dues 8/13 Compostables End Markets and Suppliers 8/20 Reimbursement 1 (haulers, municipalities, counties) Local Governments and Tribes 8/27 Reimbursement 2 (processors) Compost Facility Operators 9/5 Post-consumer recycled content Non-residential Covered Entities 9/10 Responsible end markets 9/12 General Public / Non-Governmental Eco-Modulation Organizations 9/17 Building circularity, Reuse and refill • All meetings will be virtual. • Meetings will be followed by surveys to solicit input. • Individuals can register at https://circularactionalliance.org/co-consultation DRAFT FOR CONSULTATION 7 EPR and CAA Overview DRAFT FOR CONSULTATION 8 What is EPR? • Extended Producer Responsibility (EPR) is a policy approach that shifts financial responsibility for the recycling/end-of-life management of a product from local governments and taxpayers to the producer. • EPR laws for paper and packaging require producers (i.e., brand owners, retailers, restaurants, first importers) to either partially or fully fund the collection, sortation, and processing of the paper, packaging, and packaging-like items that they supply into these states. • Since producers are made responsible for the costs to manage their product/packaging at end-of-life, EPR fees typically incentivize design choices that improve recyclability, minimize waste, and improve environmental outcomes. DRAFT FOR CONSULTATION 9 What is a PRO? • A Producer Responsibility Organization (PRO) is a producer-led, nonprofit organization that provides producers with compliance services to help them meet their obligations under EPR laws. • A PRO is responsible for developing a Program Plan for managing covered products. That plan is reviewed by a state-appointed advisory board and approved by the state regulatory agency. The Program Plan outlines program operation and the collection and management of producer fees. DRAFT FOR CONSULTATION 10 Packaging EPR in the U.S. • California, Colorado, Maine, Oregon, and Minnesota have passed laws that establish EPR programs for paper and packaging. • CAA is active as the PRO or prospective PRO in California, Colorado, and Oregon. • Other states are conducting statewide recycling needs assessments that could set the stage for future EPR programs (Illinois, Maryland, New York). • Maryland also has an Advisory Council that will make recommendations for future EPR legislation. DRAFT FOR CONSULTATION 11 The U.S. PRO – Circular Action Alliance • Circular Action Alliance (CAA) is a 501(c)(3) nonprofit PRO dedicated to implementing effective EPR laws for paper and packaging in the U.S. • CAA was founded by 20 companies from the food, beverage, consumer goods, and retail industries. • CAA has been approved to be the single PRO in California and Colorado. CAA is the only PRO that has submitted a Program Plan in Oregon. DRAFT FOR CONSULTATION 12 EPR in Colorado DRAFT FOR CONSULTATION 13 Reporting and Fees Timeline in Colorado Updated May 2024 2025 DRAFT FOR CONSULTATION 14 CAA Progress to Date • Since being selected as Colorado’s PRO in May 2023, CAA has: o Completed a statewide needs assessment and prepared a recycling scenario, which were approved by the General Assembly’s Joint Budget Committee. o Presented at almost 30 Advisory Board Meetings and three technical working sessions. o Completed a successful, initial producer registration process. o Hired its Colorado executive director. • This consultation process will support development of the proposed Program Plan. The Program Plan establishes how the EPR program will be implemented in Colorado. DRAFT FOR CONSULTATION 15 Colorado Program Plan - Requirements Program Plan Requirements in HB 22-1355 • CAA's Program Plan will be due February 1, 2025. Producer Compliance - Describe how the organization will track compliance among producers and will collaborate with the Executive Director to bring producers into compliance. • CAA is working to: Minimum Recyclables List - Include a Minimum Recyclables List (i.e., a list of materials that must be collected in a manner that is as convenient as the collection of solid waste). o Harmonize with other states while recognizing local Propose a Due Schedule & Budget - Describe the organization's approach to due setting, including eco-modulation of dues. requirements/conditions. Education & Outreach - Propose an approach for education and outreach. o Use the Needs Assessment results as a starting point Reimbursement - Include reimbursement rates for 100% of the net recycling services costs of the recycling service providers. where possible. Collection & Recycling Rates – Set 2030 and 2035 collection and recycling rates. o Use work already undertaken in other jurisdictions where Post-Consumer Recycled Content - Set targets for minimum post-consumer recycled content rates for certain types of covered materials, including paper, glass, metal, and plastic, possible. that the state will strive to meet by January 1, 2030, and January 1, 2035. Reuse & Refill - Propose an approach to measure and report on the use of reusable and refillable covered materials and establish goals and strategies for increasing the use of reusable and refillable covered materials. Responsible End Markets - Ensure any covered materials collected for recycling will be transferred to a Responsible End Market. DRAFT FOR CONSULTATION 16 Registration with CAA Registration deadline in Colorado is October 1, 2024. Scan the QR code or click the link to complete CAA’s Early producer registration will help: covered producer registration form. o Reduce free riders in the system (i.e., non-compliant obligated producers); This is the first step in the o Provide CAA with more precise producer data producer registration to inform accurate and fair fee schedules. process. Registration consists of filling out CAA's registration form, available through the link, QR code, and our website. To ease producer compliance, CAA worked to register all producers in Colorado, California, and Oregon by July 1, 2024, and registration is still open today. DRAFT FOR CONSULTATION 17 Registration FAQs How do I know if I need to register? • Companies must review the producer definition under each state’s packaging EPR law and determine whether they are an obligated producer in California, Colorado, and/or Oregon (Learn more at circularactionalliance.org/producer-resource-center#definitions). Do I need to register in each state separately, or does one registration cover all the states? • There is only one registration form for all states. CAA’s registration form allows producers to select the states where the company expects to be considered a covered producer within a single form. Will CAA contact us to tell us we need to register? • CAA has several ongoing producer recruiting efforts, but ultimately producers are responsible for registering with CAA to meet their producer registration requirements. How can I check to make sure I am registered? • Producers who complete CAA’s registration, will be considered registered with CAA. The primary contact listed will receive a confirmation email upon completing the registration form. Please save this email for your records. For any additional questions or concerns, producers can email info@circularaction.org DRAFT FOR CONSULTATION 18 Registration FAQs When will I know what data I need to report? • CAA is developing detailed guidance materials to provide reporting instructions to producers. Producers can expect guidance materials to be released by Fall 2024. CAA is working on the development of the producer reporting portal. Once finalized, state reporting categories will be added to the portal. CAA is projecting that the producer reporting portal will be ready to receive producers’ data in Q1 2025. Who do I contact if I have questions about registration? • For any additional questions or concerns, producers can email info@circularaction.org Where can I learn more about producer registration and compliance? • CAA has a Producer Resource Center (circularactionalliance.org/producer-resource-center) on its website that details producer definitions, registration, and offerings such as the Producer Working Group and Onboarding Sessions. When do you anticipate being able to share more information on the anticipated Colorado producer dues (fees)? • Since producers will not have reported the amount of covered materials they supply into CO by February 2025 when the Program Plan is due, only the fee methodology and broad fee estimates will be provided in the Program Plan, not the full detailed list of by material category. More detailed fee estimates are expected to be provided in November 2025, once supply data has been reported. DRAFT FOR CONSULTATION 19 Program Plan Development Colorado Statute Requirements for Due Modulation HB 22-1355 requires that producer dues: “must vary by the type of covered material, whether or not the material is readily recyclable, and be based on the net recycling services costs for each covered material in the state.” • All producers pay the same dues for the same packaging material. • The law also requires the PRO to develop 5 eco-modulation incentives and 3 maluses to adjust producer dues to incentivize or penalize producers for their packaging choices and actions. • The PRO must use eco-modulation factors to: • Lower producer responsibility dues to incentivize certain practices • Increase producer responsibility dues to deter certain practices • Starting in 2026, the CDPHE Executive Director will annually publish an eco-modulation bonus schedule to reduce the dues of producers. DRAFT FOR CONSULTATION Eco-Modulation Criteria in Colorado - Details HB 22-1355 Section 25-17-705 4(i)(IV) Requirements Incentives (decrease dues) Maluses (increase dues) • Reductions in the amount of packaging materials • Designs and practices that increase the costs of used for products recycling, reusing or composting covered materials • Innovations and practices to enhance the recyclability or commodity value of covered • Designs and practices that disrupt the recycling of materials other materials • High levels of PCR material use • For producers using covered materials that are not on the minimum recycling list. • Designs for the reuse and refill of covered materials • High recycling and refill rates of covered materials. Additional Producer Level Dues Adjustment PRO must reduce dues for producers that fund or operate a collection program that covers a specific type of covered material that is not processed by MRFs; and has recycling rates that meet or exceed the minimum recycling target. Q: Which factors are most important, which ones are less important? DRAFT FOR CONSULTATION Eco-Modulation Harmonization Ideal Eco-Modulation Approach ISSUE: EPR programs outside the US have traditionally waited several years for program operations and data reporting to stabilize, before introducing producer-level eco-modulation in a limited way. POTENTIAL APPROACH: CAA is recommending that CO incorporate learnings from other EPR programs and consider a phased approach to eco-modulation implementation. ISSUE: Colorado’s statute requires CAA to modulate base dues by specific factors but does allow for some flexibility. POTENTIAL APPROACH: CAA proposes an approach that would provide flexibility, where possible, to allow the PRO to determine the most effective, fair and optimal approach to generate the necessary revenue (including from maluses) to provide bonuses. ISSUE: Legislative variation across states with EPR laws makes harmonizing eco-modulation across existing states difficult. POTENTIAL APPROACH: To the greatest extent possible, CAA is considering methods to limit variation across states with existing EPR and work with trade associations to ensure new EPR laws provide the PRO with the necessary flexibility to develop harmonized eco-modulation approaches. DRAFT FOR CONSULTATION Background – Base Dues vs. Eco-Modulation • Base dues vary by packaging type - they reflect the recycling costs, revenues, and performance of each packaging type. The base dues are universal: all producers who supply packaging using a specific material type, will pay the same due rates. • Eco-Modulation is a dues adjustment issued by the PRO to individual producers based on their actions (or inactions) to improve the environmental performance of their packaging. • This approach is also described in Consumer Goods Forum’s latest paper on EPR dues: Guiding- Principles-for-the-Ecomodulation-of-EPR-dues-February-2022.pdf. DRAFT FOR CONSULTATION Non-Modulated Dues vs Modulated Base Dues vs Producer Level Eco-Modulated Dues NON-MODULATED BASE DUES MODULATED BASE DUES ECO-MODULATION MATERIAL CATEGORY PRODUCER LEVEL 20 20 20 Bonus for Producer B 18 18 18 Malus for 16 16 16 Producer C 14 14 14 12 12 12 10 10 10 8 8 8 6 6 6 4 4 4 2 2 2 0 0 0 Material A Material B Material A Material B Material A Material B All producers in all material categories pay Material A is easier to recycle than Material B. Producer C of Material A packaging is harder to the same dues recycle than other producers of Material A, Thus, base dues for Material A are lower than mauls is applied. Material B. Producer B of Material B adds more PCR to their Creates incentive for producers to consider packaging, bonus is applied. Example for their packaging options by material category. Creates incentive for individual producers to Illustrative Purposes consider their packaging options in a material Only DRAFT FOR CONSULTATION category. 25 cents/lb. cents/lb. cents/lb. Eco-Modulation Challenges in Colorado ISSUE IMPLICATION Producer data is unknown Appropriately setting incentives and maluses is not possible without producer data, multiple years of data preferred. Operating budget has not been CAA has not yet built reserves, maluses and incentives may result in stabilized budget deficits. Reporting requirements will be new Many producers have yet to develop systems to accurately track and and yet to be developed report data at a state or SKU level. Producer resources vary Creates inequity, potentially places more cost burden on smaller, local, producers. System change takes time Producers need lead time to evaluate the implications of some eco- modulation factors and make changes to their designs and supply chains. DRAFT FOR CONSULTATION Proposed Colorado Approach - Summary CAA proposes using a phased approach to eco-modulation in Colorado. Phase 1: Use base due modulation to address all required maluses and majority of bonuses at the material category level starting in program year 1. Phase 2: Implement additional producer level eco-modulation factors in future program years. DRAFT FOR CONSULTATION Proposed Colorado Approach - Details To meet the requirements of the Act, CAA is proposing the following approach: Phase 1: Base Dues modulation • Utilize factors in the base dues setting methodology that result in the modulation of base dues for 6 of the 8 Colorado eco- modulation factors at the material category level. This includes all 3 maluses and 3 of the bonuses. • CAA proposes starting with base dues modulation in 2026 (the first year of the program) to meet CO requirements. Phase 2: Additional producer level eco-modulation CAA proposes the following steps to implement producer level Eco-Modulation in phase 2. 1. Solid and Hazardous Waste Commission promulgates rules for eco-modulation bonus benchmarks and schedule by the end of 2025. 2. CAA to develop a roadmap to introduce producer level eco-modulation with the goal of establishing: A. Develop and publish reporting guidance for producers B. Producer data gathering (min 1 year of data) C. Producer data reporting Q2 of the following year D. Use data to enact phased-in eco-modulation at the individual producer the next program year 3. Continuously identify opportunities for harmonization of eco-modulation approach and factors at the national level. DRAFT FOR CONSULTATION Phase 1 – Base Due Modulation Initial Proposal to Modulate Using Base Dues – Years 1 and 2 INCENTIVES* CRITERIA APPROACH Use base dues to modulate. 1 Reductions in the amount of packaging Producers supplying packaging with less packaging by material type pays materials used for products less dues. Use base dues to modulate. Innovations and practices to enhance the Producers supplying packaging with high recyclability offer the 2 recyclability or commodity value of covered opportunity to expand end markets thereby maximizing commodity values, materials which will help them pay lower dues. Use base dues to modulate. Producers supplying packaging with high recyclability will generate higher commodity values and pay less dues. 5 High recycling covered materials RR% needs to be measured at the program/material level; it is not practical to measure individual producer/brand level RR%. *CAA is proposing an approach in which modulation factors 3 and 4 will be phased in after year 1. Initial thoughts on this approach is included later in the presentation. DRAFT FOR CONSULTATION Initial Proposal to Modulate Using Base dues – Years 1 and 2 (cont’d) MALUSES CRITERIA APPROACH Designs and practices that increase the costs of Use base dues to modulate. 6 recycling, reusing, or composting covered Producers supplying packaging that is costly to manage will pay materials higher dues. Use base dues to modulate. 7 Designs and practices that disrupt the recycling Producers supplying packaging with disruptive attributes will pay of other materials higher dues. Use base dues to modulate. Producers supplying packaging that is not on the minimum 8 For producers using covered materials that are not on the minimum recyclable list recyclable list pay higher average dues as per the statute due- setting requirement. DRAFT FOR CONSULTATION Base Due Setting Methodology Other Required Funding (E&O, regulatory, reserves, material-specific costs, PRO admin., etc.) will also be incorporated into the base dues. Determine Allocate Multiply Subtract System each Commodity Total System By Material Costs Costs to Material Values of Producer Supply (Collection, each Supply each transportation, Material Weight Material to Tons NET dues by its reduce the by Material Type processing, Type based by access capital, on share of Cost to costs of Material (Base dues c/lb.) service Supply Manage each Type expansion) Weight % Index* Material Type Dues must vary by the type of Dues to be based on the net PHASE 1 covered material, whether or not recycling services costs of Producer Level the material is readily recyclable. each covered material. Eco- modulation Statute Requirements CDPHE Eco- Steps used to modulate base dues modulation Rules DRAFT FOR CONSULTATION 32 PHASE 2 Steps 2, 3 and 4 of the Base Dues Methodology Once recycling services system costs are established, the material management Allocate costs are allocated to covered materials based on: Recycling Services System • Share of supply tons - upholds the generally accepted ‘polluter pays principle’ Costs to each in EPR literature where materials with large supply quantities pay for a large Material Type based on share of share of system costs. Supply Weight % • Cost to Manage index – material cost variation exists by incorporating material-specific cost indices generated by an Activity-Based Costing model into the due allocations. The index, which is coined as CTM (Cost to Manage Multiply each index) represents the varying costs that each material drives in the recycling Material Supply Weight by its Cost system as it is being managed throughout the supply chain from collection to to Manage Index* transfer stations for consolidation and transportation to processing facilities. • Program revenues are attributed to the materials that earned those revenues to reduce their share of material management costs. Subtract Application of steps 2, 3 and 4 of the method enable CAA to apply 6 of the 8 Commodity factors that would apply to the covered material type. Values of each Material to reduce Additionally reuse and refill covered materials are not required to pay dues. the costs of each Material Type DRAFT FOR CONSULTATION Illustrative Example of Base Due Modulation (Supply & Cost to Manage Index) INCENTIVE: INCENTIVE: 2. Innovations that enhance recyclability 1. Reduction in amount of MALUS packaging 6. Designs that increase cost of recycling 7. Designs that disrupt recycling **MM Costs $150,000,000 Share % Share % Base Due Rate*** Supply x Supply x Supply Supply x Supply Tons Supply Tons MM Costs $ *CTM MM Costs $ CTM Share Modulation CTM Share % CTM Share % only %​ * Paper 60,000 27% $41,189,931 9.0 540,000 6% $8,901,099 $686 $148 -$538 -78% Plastics - Rigid 40,000 18% $27,459,954 45.0 1,800,000 20% $29,670,330 $686 $742 $55 8% Plastics - Flexibles 55,000 25% $37,757,437 70.0 3,850,000 42% $63,461,538 $686 $1,154 $467 68% Metals 36,000 16% $24,713,959 35.0 1,260,000 14% $20,769,231 $686 $577 -$110 -16% Glass 27,500 13% $18,878,719 60.0 1,650,000 18% $27,197,802 $686 $989 $303 44% 218,500 100% $150,000,000 9,100,000 100% $150,000,000 $686 $686 $0 0% *Cost to Manage (CTM) index, generated by Activity-Based Costing model ** Material Management (MM) ***CAA expects to modulate base dues for over 50 packaging types DRAFT FOR CONSULTATION Illustrative Example of Base Due Modulation (Supply Share, CTM & Commodity Revenues) INCENTIVE: 2. Innovations that enhance commodity values 5. High recycling covered materials **MM. Costs $150,000,000 Share % Share % Supply x Supply x Recycling Recycled Supply Tons Supply Tons MM Costs $ *CTM MM Costs $ Price Index Revenues Net MM Costs $ CTM Share % CTM Share % Rate % Tons Paper 60,000 27% $41,189,931 9.0 540,000 6% $8,901,099 60% 36,000 $ 45.0 $ 1,620,000 $7,281,099 Plastics - Rigid 40,000 18% $27,459,954 45.0 1,800,000 20% $29,670,330 50% 20,000 $ 200.0 $ 4,000,000 $25,670,330 Plastics - Flexibles 55,000 25% $37,757,437 70.0 3,850,000 42% $63,461,538 2% 1,100 $ 15.0 $ 16,500 $63,445,038 Metals 36,000 16% $24,713,959 35.0 1,260,000 14% $20,769,231 65% 23,400 $ 250.0 $ 5,850,000 $14,919,231 Glass 27,500 13% $18,878,719 60.0 1,650,000 18% $27,197,802 15% 4,125 $ - $ - $27,197,802 218,500 100% $150,000,000 9,100,000 100% $150,000,000 84,625 $ 11,486,500 $ 138,513,500 *Cost to Manage (CTM) index, generated by Activity-Based Costing model ** Material Management (MM) Base Due Rate*** ***CAA expects to modulate base dues for over 50 packaging types Supply x Supply only Net MM Modulation CTM Share %​ Paper $686 $148 $121 -$565 -82% Example for Illustrative Purposes Only Plastics - Rigid $686 $742 $642 -$45 -7% Plastics - Flexibles $686 $1,154 $1,154 $467 68% Costs are not meant to reflect current actual Metals $686 $577 $414 -$272 -40% costs in Colorado Glass $686 $989 $989 $303 44% $686 $686 $634 -$53 -8% MALUS: Base dues are modulated as a DRAFT FOR CONSULTATION 8. Material not on MRL result of different factors Phase 2 – Producer Level Due Modulation Base Due Setting Methodology Other Required Funding (E&O, regulatory, reserves, material- specific costs, PRO admin., etc.) will also be incorporated into the base dues. By Material Determine Allocate Total System System Multiply each Subtract NET dues Costs Costs to Material Commodity Producer by Material Type each Values of Supply (Base dues c/lb) (Collection, Supply transportation, Material Weight by each Material Tons processing, Type based its Cost to to reduce the by access capital, on share of costs of each Material service Supply Manage Index* Material Type Type expansion) Weight % CDPHE Eco- modulation Rules Dues must vary by the type of Dues to be based on the net covered material, whether or not recycling services costs of Producer Level the material is readily recyclable. each covered material. Eco- modulation Statute Requirements Base due RATES (rate/lb) by Material Type DRAFT FOR CONSULTATION 37 PHASE 2 Producer-Level Eco Modulation – Phase 2 Details By Material High levels of post-consumer recycled material use CDPHE eco- Designs for the reuse and refill of Base due RATES modulation rules = covered materials + high refill (rate/lb) by bonus schedule rates of covered materials Material Type Reduce dues for producers that fund or operate a collection program that covers a covered material that is not processed by MRFs; and has recycling rates that meet or exceed the minimum RR target. DRAFT FOR CONSULTATION 38 Steps that Impact Timelines for Producer-Level Eco-Modulation Activity Background Supply data from • Producers report on the previous year's data producers are necessary • They will typically provide this data annually in April/May to eco-modulate at producer level Guidance • In order to report on eco-modulation factors, they will need to know well in advance (i.e., at least a year in advance) to ensure they can collect the necessary data • CAA will need to ensure they provide guidance to producers in advance of the year they report data Eco-modulation • CAA will apply eco-modulation factors to individual producers in the year following when supply data has been reported. CAA continues to consult with CDPHE, producers, and other stakeholders to evaluate operationally feasible implementation timelines for Phase 2. 39 Implementation of Producer-Level Eco-Modulation: Initial Thoughts CAA will first focus on introducing the factors not addressed through the base dues. INCENTIVES CRITERIA APPROACH Data reporting (incl. product, SKU info, weights, PCR level for 3 High levels of post-consumer recycled material which component, certification, and chain of custody). use Additional data reporting from producers for CAA to track progress towards achieving program PCR targets in 2030. Designs for the reuse and refill of covered 4 materials Apply using case studies (incl. product, SKU info, weights). + high refill rates of covered materials Will need to show the action and outcomes using metrics. PRO must reduce dues for producers that fund or Apply using case studies (incl. product, SKU info. and operate a collection program that covers a specific weights). type of covered material that is not processed by Will need to show the action and outcomes using metrics. MRFs; and has recycling rates that meet or exceed the minimum recycling target. Excludes: materials on minimum recycling list and those generated from non–covered entities. DRAFT FOR CONSULTATION Questions for Discussion and Survey Q: Do you have any concerns with the approach to modulate base dues by material type? If so, what are your concerns? Q: Do you support the proposed phased approach that starts with modulation at the base due level and moves toward additional eco-modulation at the individual producer level over time? Q: How can CAA implement an eco-modulation approach that is equitable to all producers regardless of size and resources? Q: How long will it take for producers to implement data systems to capture data related to potential bonuses (e.g., PCR, reuse / refill, reductions in packaging)? Q: Do you have any recommendations related to the potential timelines to implement eco- modulation at the producer level? DRAFT FOR CONSULTATION Discussion/ Next Steps DRAFT FOR CONSULTATION 42 Providing Input on Eco-Modulation • Provide written feedback through the online survey: https://bit.ly/3z7jpd8 • Survey will be open until 5 p.m. MT on Friday, October 11th. • Participants of this session will also receive an email from Zoom with the survey link. • If needed, the survey can be saved and completed later, ahead of the October 11th deadline. • Questions about accessing the survey, as well as comments and questions for the project team, can be sent via email to coplanconsultation@circularaction.org. DRAFT FOR CONSULTATION 43 Info@CircularAction.org CircularActionAlliance.org Thank You Circular Action Alliance @CircActAlliance DRAFT FOR CONSULTATION 44, and on the CDPHE rulemaking website.

Learn more about who qualifies as an obligated producer by reviewing CAA’s producer resource center.

3. California’s EPR (SB 54) Advisory Board Preparing Recommendations for CalRecycle

What is California’s SB 54?

California’s SB 54, or the Plastic Pollution Prevention and Packaging Producer Responsibility Act, is the state’s EPR legislation. The law requires cutting single-use plastics by 25%, recycling 65% of single-use plastics, and ensuring 100% of single-use packaging and plastic food ware are recyclable or compostable.

What’s the status of implementing California’s EPR legislation?

Right now, the California SB 54 Advisory Board is working on preparing recommendations for CalRecycle. To inform the recommendations, the Board is soliciting feedback on barriers and solutions regarding reuse and refill, recyclability, compostability, and plastic leakage.

What’s next for California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act? 

The Advisory Board must prepare and share its final recommendations in January 2025. The Board is required to report its recommendations to CalRecycle, the branch of the state’s Environmental Protection Agency tasked with overseeing statewide waste management, recycling, and waste reduction programs.

Where can I learn more about this legislation?

Learn more about the implementation of California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act by checking out the CalRecycle Advisory Board website. Obligated producers can also review relevant implementation deadlines here.

August packaging policy roundup

1. Michigan’s EPR Legislation: HB 5902 

What would this bill do?

If passed, Michigan House Bill 5902 bill would enact Extended Producer Responsibility (EPR) legislation in the state. Michigan would be the sixth state in the U.S. to adopt packaging EPR.

What’s the status of this legislation?

Right now, the bill has been referred to the state’s Committee on Natural Resources, Environment, Tourism and Outdoor Recreation. Michigan’s legislative session is still active and concludes on December 31, 2024.

What would this policy look like in action? 

Michigan’s EPR bill would cover all packaging, regardless of recyclability. The bill specifically mentions paper, plastic, glass, metal, or multi-material packaging used for the containment, protection, handling, delivery, transport, distribution, or presentation of another product sold in Michigan. The bill, however, doesn’t mention paper like newspapers or catalogs as a stand alone covered product.

Michigan’s HB 5902 also outlines packaging reduction requirements for producers beginning two years after a producer first registers with the packaging reduction organization. Producers would be required to reduce the amount of packaging by 50% in weight after 10 years. This language is similar to legislative targets in the New York Senate Bill 4246B.

Where can I learn more about this bill?

To learn more about Michigan’s EPR bill, you can check out SPC’s EPR Tool or read the full text here.

2. California’s Plastic Bag Rule Revision: AB 2236

What would this bill do?

In 2014, California adopted legislation (Senate Bill 270) initiating a statewide phase-out of single-use plastic carryout bags across most grocery stores and restaurants. Still, covered stores could provide customers with thicker, “reusable” bags. Now, the state’s Assembly Bill 2236 would amend its existing law to prevent covered stores from providing those thicker, non-woven plastic bags at check stands as reusable bags.

What’s the status of this legislation?

California’s AB 2236 was read a third time and amended on August 20, 2024. It was then ordered for second reading and is still moving forward.

What would this policy look like in action? 

Beyond banning thicker plastic bags, the bill also includes new standards for recycled paper bags. AB 2236 would require the bags to contain 50% post-consumer recycled materials on and after January 1, 2028, with no room for exemptions.

Where can I learn more about this bill?

Interested in learning more about revisions to California’s plastic bag legislation? You can check out this article or read the full bill text here.

3. Oregon EPR Updates: State’s DEQ Requests Revised CAA Plan

What’s the latest on Oregon’s EPR legislation?

First, let’s cover some acronyms (and you can view more EPR-related acronyms hereE X T E N D E D P R O D U C E R R E S P O N S I B I L I T Y ( E P R ) AC R O N Y M S & A B B R E V I AT I O N S stainable packaging coalition Extended Producer Responsibility (EPR) Acronyms & Abbreviations Reference Sheet MINI RESOURCE POLICY E X T E N D E D P R O D U C E R R E S P O N S I B I L I T Y ( E P R ) AC R O N Y M S & A B B R E V I AT I O N S E X T E N D E D P R O D U C E R R E S P O N S I B I L I T Y ( E P R ) AC R O N Y M S & A B B R E V I AT I O N S GreenBlue is an environmental nonprofit dedicated to the sustainable use of materials in society. We bring together a diversity of stakeholders to encourage innovation and best practices to promote the creation of a more Introduction sustainable materials economy. Extended Producer Responsibility for packaging and paper The Sustainable Packaging Coalition (SPC) is a products is a policy approach that assigns producers (brands, manufacturers, etc.) responsibility for the end-of-life of their membership-based collaborative that believes in products, whether that be through recycling, composting, or the power of industry to make packaging more landfilling. The responsibility part can be financial, operational, or a combination of both. Essentially, producers are required to sustainable. We are the leading voice on provide funding and/or services that assist in managing covered products after the use phase of a product’s life. sustainable packaging and we are passionate about the creation of packaging that is good for Within the last few years, EPR laws have passed in California, Colorado, Maine, Minnesota, and Oregon. While each of these people and the environment. Our mission is to laws enacts producer responsibility in their states, the laws’ bring packaging sustainability stakeholders implementation processes — and the language around these laws — can vary state-to-state. together to catalyze actionable improvements to The Sustainable Packaging Coalition (SPC) has developed this packaging systems and lend an authoritative quick reference sheet to help provide an overview of some voice on issues related to packaging sustainability. common acronyms and abbreviations that are frequently used at the federal- and state-level when discussing extended producer responsibility (EPR) for packaging and paper products across the The Sustainable Packaging Coalition is a country. trademark project of GreenBlue Org. stainable packaging 2 3 E X T E N D E D P R O D U C E R R E S P O N S I B I L I T Y ( E P R ) AC R O N Y M S & A B B R E V I AT I O N S Common Abbreviations ABBREVIATION MEANING DEFINITION ABBREVIATION MEANING DEFINITION EPR is a policy approach that assigns producers Product Stewardship is an approach to managing responsibility for the end-of-life of their products. products that necessitates producers to steward This can include both financial responsibility and (be responsible for) their products throughout the operational responsibility, though each program can differ. The policy approach aims to integrate product’s lifecycle, while reducing environmental producers into the life cycle of products, not just impacts from said products. In some instances, PS the upstream, but also the downstream, like and EPR are used interchangeably, as both aim to collection, recycling, and processing. This policy EPR Extended Producer minimize a product’s impact across its life cycle. approach can also include incentives for producers Responsibility PS Product Stewardship However, EPR is generally mandated or legislated, to lessen environmental impacts of their products. In this example, “products" refers to packaging and where PS can be voluntary. paper products. Definitions of producers can vary, but we are referring to the entity that puts packaging or paper products into the market. Typically that looks like brands, manufacturers, and then importers/distributors. EPR principles can apply to a variety of products. Producers must collectively work together to Programs in the US exist for paint, electronics, tires, organize and operate the EPR program. Generally carpet, mattresses and more. EPR for PPP is producers utilize a PRO to assist in coordinating referring to extended producer responsibility PPP Packaging and Paper their responsibilities mandated in the EPR program CPR Collective Producer Products programs where packaging and paper products Responsibility like program plan writing, implementation, and fee are the covered products. collection. A PRO is an organization composed of producers Many EPR programs require a stakeholder advisory who are obligated under an EPR program. The PRO committee or board to assist with the development acts as an intermediary between the producer and of the program plan and provide feedback on the the government entity overseeing the EPR program. The board or committee is composed of program. The PRO can be a non-profit organization various stakeholders including producers, industry PRO Producer Responsibility and supports producers by developing and SAB Stakeholder Advisory Board experts, ENGO’s, government officials, elected Organization executing the EPR program plan, including the officials, and others. collection and management of producer fees. Producers are responsible for their own products and must offer collection and recycling individually. The existing packaging and paper products EPR in the US generally favors CPR over IPR, but some laws allow for IPR compliance. IPR Individual Producer Responsibility 4 55 stainable packaging E X T E N D E D P R O D U C E R R E S P O N S I B I L I T Y ( E P R ) AC R O N Y M S & A B B R E V I AT I O N S Oregon defines REM as “a materials market in which the recycling or recovery of materials or the disposal of contaminants is conducted in a way State Abbreviations that benefits the environment and minimizes risks to public health and worker health and safety.” Below are common acronyms and abbreviations used in the U.S. states that have passed EPR laws for Essentially, an end market must not cause REM Responsible End Markets packaging. After an EPR bill passes and is signed into law, every state develops rules and clarifications beyond environmental or social harm and specific parameters are required to be met. Historically, the legislative statute — this is referred to as rulemaking. This process leads to diverse terminology based on the little requirements have existed for materials individual state’s needs and the language that is cemented into law. downstream after use and this requirement seeks This is a living document and the list will evolve to include more states and acronyms as they develop. to change that. OREGON DEQ, the Oregon Recycling System Advisory Council, and the PRO will develop a list of specifically identified materials, a separate list from ABBREVIATION MEANING DEFINITION the USCL. These materials, such as shredded paper, glass jars, and thermoformed PET, have the ability to be recycled, but are challenged in traditional DEQ Department of Oregon’s environmental regulatory agency Environmental Quality overseeing the implementation of EPR. curbside collection. The criteria for determining SIMS Specifically Identified Materials what these materials should be, includes current or Independent group appointed by governor to be future recycling processing equipment to sort, another resource for the implementation of the viable end markets, economic factors, and if EPR program in OR. The group is facilitated by DEQ ORSAC Oregon Recycling System collecting the materials in existing recycling programs would add additional costs. The PRO is Advisory Council and provides feedback to the PRO on the program plan as well as other decisions necessitating responsible for supporting collection, processing, and responsible recycling of SIMs. stakeholder opinions. Oregon’s EPR for packaging and paper products RMA The Plastic Pollution and law, passed in 2021 The goal of this act is to update Recycling Modernization Act the recycling system in the state. CALIFORNIA One type of Material Recovery Facility, a facility ABBREVIATION MEANING DEFINITION where materials are processed and contaminants The government regulatory agency overseeing CRPF Commingled Recycling S are removed and subsequently disposed of. California’s Department of Processing Facilities EPR implementation in the state. Facilities require a disposal site permit. CALRECYCLE Resources Recycling and Recovery The uniform statewide collection list will establish Independent company approved for auditing which materials will be collected in on-route components of EPR laws, typically the Minimum commingled recycling programs (curbside) and Recycled Content and Responsible End Markets. It which materials will be collected at recycling is accredited to ISO 17065 standards for depots. Oregon’s rural areas and densely populated USCL Uniform Statewide independence and impartiality, and usually cities historically had different collection lists based Collection List CB Certification Body on a variety of factors like end markets and approved to audit specific Voluntary Consensus transportation costs. This list will be harmonized Standards. Draft rulemaking has outlined that across the entire state’s recycling programs and is these organizations need to be approved by expected to lead to more cohesive collection of CalRecycle. materials. Clarification or interpretation of rulemaking A category that includes covered material of a provided by DEQ to assist producers and PROs in similar type and form, as determined by preparation of implementation. DEQ published an CalRecycle. The CMCs have different requirements IMD on the PRO program plan going into details on IMD Internal Management in the law like source reduction, eco-modulation Directive the requirements, reporting procedures, and CMC Covered Material Categories stipulations, responsible end markets approval process. The IMD helped the PRO draft qualifications, recycling rates, and others. the program plan, currently under review by DEQ. 6 75 E X T E N D E D P R O D U C E R R E S P O N S I B I L I T Y ( E P R ) AC R O N Y M S & A B B R E V I AT I O N S COLORADO Sources: ABBREVIATION MEANING DEFINITION The government regulatory agency overseeing OECD: Extended Producer Responsibility: Basic Facts and Key Principles Colorado Department of EPR implementation in the state. CDPHE Public Health and NW Product Stewardship Council: Definition of Key Terms Environment The Recycling Partnership: Extended Producer 101 The list of covered materials that are required to be New York Department of Environmental Conservation: Product collected and processed by service providers in the Stewardship & Extended Producer Responsibility state of Colorado. All of the state’s recycling Circular Action Alliance: FAQ programs will be required to collect the items on MRL Minimum Recyclable List this list and will help provide a cohesive state-wide program. MAINE ABBREVIATION MEANING DEFINITION The government regulatory agency overseeing MDEP Maine Department of EPR implementation in the state. Environmental Protection Similar, if not functionally the same as a PRO, SOs are an organized group of producers who work collaboratively to manage the products they put SO Stewardship Organization into the market. Maine’s EPR program will put out a request for proposals (RFP) for the SO in the fall of stainable 2025. MINNESOTA packaging ABBREVIATION MEANING DEFINITION The government regulatory agency overseeing EPR implementation in the state. coalition MPCA Minnesota Pollution Control Agency 8).

  • DEQ: Oregon’s Department of Environmental Quality, the agency tasked with implementing its EPR legislation
  • PRO: Producer Responsibility Organization, which is the organization of producers under a state’s EPR program that acts as an intermediary between the producer and the government and helps in the development and execution of EPR programs. 
  • CAA: Circular Action Alliance is a PRO. CAA has been chosen by California, Colorado, and Maryland and is in the process of applying to be Oregon’s PRO. 

Now, for the update: CAA was the only PRO to submit a program plan for Oregon’s EPR legislation, the Recycling Modernization Act. The plan submission process was expected to be an iterative one, where Oregon’s DEQ and others supplied comments to CAA’s first plan. Now after receiving CAA’s first draft plan, DEQ is requesting an updated version of CAA’s plan on or before September 27, 2024.

What’s the status of this plan?

CAA is taking all the comments and drafting a second  plan to submit to DEQ.

What’s in the review of CAA’s first plan? 

Approval from Oregon DEQ was based on sections. They categorized each section of CAA’s plan as a yes, no, or conditionally. CAA had quite a few “no” sections, but many sections were conditionally approved.

Now that CAA has an Oregon Director, Kim Holmes, stakeholders are optimistic about moving forward with revisions. One section that did receive a “yes” was a “description of how facilities will be selected for site visits and/or desktop verification (sampling plan).”

DEQ stated, “CAA noted that all facilities will receive a site visit by July 1, 2027, and one site visit every five years, with desktop audits conducted in years when site visits do not occur … Overall the approach appears sound.”

Where can I learn more about this plan?

You can read this article summarizing events, you can also view all of the comments from DEQ and other organizations hereDepartment of Environmental Quality Materials Management Program 700 NE Multnomah Street, Suite 600 Tina Kotek, Governor Portland, OR 97232 (503) 229-5696 FAX (503) 229-5675 TTY 711 July 29, 2024 Charles Schwarze Chair Circular Action Alliance 20 F Street NW, Suite 700 Washington D.C., 20001 Dear Mr. Schwarze: Thank you for the first draft producer responsibility program plan that the Circular Action Alliance submitted to the Oregon Department of Environmental Quality on March 31, 2024, for the development and implementation of a producer responsibility program for packaging, printing and writing paper, and food serviceware in Oregon under Senate Bill 582 of 2021 (Act). Pursuant to the Act, as part of DEQ’s plan review process, DEQ offered a public comment period on the Plan and consulted with the Oregon Recycling System Advisory Council, an advisory committee created by the Act to advise DEQ and the producer responsibility organization(s) on implementation of the Act, including program plan review. The public comments received and a summary of the Committee’s input on the Plan are available on DEQ’s website. This letter and its attachments comprise DEQ’s official response to the first draft plan pursuant to ORS 459A.878(1). DEQ would like to voice overall appreciation for the constructive tone of the Plan, its ease of navigability, and the considerable knowledge of Oregon’s program requirements that it reflects. DEQ understands that these strengths of the Plan result from CAA having brought a strong and comprehensive team to the project start-up phase well in advance of the Plan due date, under the leadership of Doug Mander. As we look ahead to future revisions of this Plan under newly- appointed Oregon director Kim Holmes, we are confident in CAA’s ability to ultimately produce a revised version of the Plan that meets all requirements, and launch its first-in-the-nation program on our start date of July 1, 2025. After reviewing the Plan and considering input received through public comments and the Council, DEQ rejects the first draft proposed Plan. DEQ requests that CAA submit an updated version on or before September 27, 2024. The Department’s rationale for rejecting the Plan, including recommendations for improving the plan in subsequent drafts, is laid out in Appendix A. Additional supporting documentation is located in confidential Appendix B, which responds to Plan content that CAA claimed as confidential at the time of submission. DEQ reviewed and approved 18 sections of the Plan individually, as detailed in Appendix A and summarized below. Note that overall Plan approval is contingent upon DEQ’s approval of all sections. 1 • Four sections are conditionally approved; those pertaining to PRO description and qualifications, depot collection targets, education and outreach, and material categorization for the producer fee schedule. For these four sections, CAA may revise the content to align with DEQ’s approval conditions, and then these sections will be considered approved upon resubmission. Note that substantial changes to conditionally- approved sections that are not aligned with the DEQ conditions of approval would initiate another full review of those sections. • The other 14 sections are not approved. CAA must revise the content, incorporating feedback from DEQ, the Recycling Council, and the public. CAA has two more opportunities to seek approval as described in ORS 459A.878, which provides up to three drafts in the review process. The need for multiple drafts to arrive at a version of the Plan that meets all requirements is to be expected for a program like this one, which is of considerable breadth and expected impact. DEQ is aware that CAA is currently conducting a detailed surveying of interested parties, the Oregon System Recycling Optimization Plan. This will inform sections of the plan pertaining to system expansion for collection of materials on the USCL and the PRO Recycling Acceptance lists, and will improve system cost projections for CAA to set producer fees. DEQ looks forward to continued communications with CAA regarding sequencing of the survey findings into drafts 2 and 3 of the Plan. In order to facilitate efficient review of the second draft, DEQ requests that CAA submit the revised Plan in both PDF and redlined Word versions. DEQ appreciates CAA’s continued work and looks forward to working together on this new and exciting program for extended producer responsibility in Oregon. Sincerely, Nicole Portley PRO Program Plan Lead Recycling Modernization Act Oregon DEQ Attachments Appendix A: DEQ recommendations on CAA program plan components Appendix B: Confidential DEQ recommendations on CAA’s Appendix G 2 Appendix A: DEQ recommendations on CAA program plan components There are 18 total components in the plan requiring approval for DEQ to approve the entire plan. Section approval decisions apply at the bolded, numbered, plan component level rather than at the subcomponent/subsection level. Approval and rationale/recommendation entries at the subcomponent level are for an informational purpose. Subcomponents listed with asterisks indicate subcomponents that are also considered in review/approval of the Equity section. Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Inclusion of an executive n/a Executive Summary, pg n/a The structure of the executive summary is largely summary. 5-9 acceptable, but as revisions to the plan are expected for subsequent drafts, DEQ recommends that CAA integrate updates into this section to reflect all substantial additions and edits made to the plan’s main body. 1. Overarching goals for the ORS Goals of the Program, No Overall DEQ encourages CAA to strengthen and Upstream program plan that are as 459A.875( pg 10-13 tighten the goals section, and to articulate a long-term recommended objective and measurable as 2) vision with concrete milestones. DEQ recognizes that integrating upstream possible. full obligation will not lie on CAA in a shared waste prevention, responsibility system. However, goals play an source reduction, and important guiding role, and the program plan review reuse into the program process provides an opportunity for other obligated goals. parties to weigh in regarding the appropriateness of goals toward which they may be contributing. ORSAC recommended specifying that eligible To strengthen this section, DEQ recommends that costs for system CAA review all key metrics and assign specific expansion would be benchmarks to be achieved in the first program plan. funded by the end of the plan period. Goal and objective-specific recommendations follow: ORSAC recommended The Objective 1 header limits the scope to “end of strengthening metrics life,” while the second nested goal encompasses for education and production. DEQ recommends broadening the equity (Objective 3). objective to encompass goals of work on ORS 459A.884(4) and ORS 459A.896(2)(b). • Objective 1, Goal 1: Focus relevant Outcomes/ Indications of Success on particular issues that CAA aims to resolve or contribute to resolving. 3 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) • Objective 1, Goal 2: Include food serviceware in the scope of the goal. • Set a more ambitious goal for ecomodulation. The current ecomodulation outcome wording is input-oriented. Consider the draft rules on life cycle evaluation and how they could be applied in measuring progress. Objective 1 generally: add an outcome and metric(s) to fulfill the hierarchy requirement, i.e., 459A.896(2)(b). Objective 2, Part 1: Add the objective of funding all eligible costs by the end of program plan period. Make the goal of meeting the convenience standards timebound by adding a deadline and interim milestones. Objective 3: The equity outcomes are worded as inputs rather than outcomes. Consider adding proportion of service provided to the PRO by COBID businesses among metrics for this objective. Objective 4: Consider adding a meaningful and measurable KPI for the dispute resolution process. 2. Prospective PRO • Application pg 1-2 Conditionally See section-specific requested updates below; with Description and Qualifications. • About Circular Action these updates, these sections are approvable. Alliance, pg 14-17 • Appendices B, C, and H-L, pg B10 – L63 Contact information for the ORS Application pg 1-2 Yes CAA provided its contact information in the prospective PRO. 459A.875( application form on page 1. 2)(b) A description of the structure ORS • Description of the Org, Conditionally Add more details/commitments on pg 15 with respect FPI and OWA-OWC- of the producer responsibility 459A.875( pg 14-15 to the Oregon Board—i.e., replace “intends to WI made queries with organization, including the 2)(c) • Appendix C: CAA Org establish” with “will establish” or “has established,” respect to Board management structure, the Structure, pg C15-18 and indicate the Board membership or how it will be membership. PRO’s board and roles and determined. functions of committees. 4 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) The prospective PRO’s OAR 340- • CAA’s Qualifications to Conditionally Clarify intentions to hire on-the-ground staff in qualifications (both to serve 090- Serve as a PRO in Oregon: as a PRO in Oregon’s system 0680(1)(b Oregon, pg 15 • Approximately how many positions are overall and to carry out )(A) • Understanding of OR’s envisioned, and of what nature? particular interim RMA, pg 15-16 • Plans to hire in Oregon are referenced on pg 16 coordination tasks). • Team Expertise and but are not shown in the Org Chart for OR in Any other information ORS Capabilities, pg 16 Appendix C, pg C18. required by the department to 459A.875( • Qualifications to determine that a producer 2)(q) Deliver Interim responsibility organization is Coordination Tasks pg capable of meeting its 16-17 obligations and ensuring the • Appendix C: CAA Org outcomes required under ORS Structure, pg C15-18. 459A.860 to 459A.975. The prospective PRO’s ORS • CAA’s Producer Conditionally Update the producer list in Appendix B in each current producer membership 459A.875( Membership, pg 17 subsequent draft to include new members beyond the (include here information on 2)(b) and • Appendix B, List of founders, including companies that have pre- the likelihood of achieving the OAR 340- Member Producers and registered with CAA. 10% minimum market share 090- Market Share threshold to operate as a PRO 0680(1)(b Calculation, pg B10-15 Update the market share calculation section of in Oregon). )(C) Appendix B in each subsequent draft to reflect the estimated market share of current members. Information regarding the OAR 340- • CAA’s Producer adequacy of the prospective 090- Membership, pg 17 PRO’s access to financial 0680(1)(b resources (i.e., to carry out )(B) assigned interim coordination tasks). 3. An Approach to Prioritize, ORS System Expansions and No See nested requirement-specific recommendations Schedule and Fund Eligible 459A.875( Improvements, pg 19-26 below. Costs From the Needs 2)(a)(A) Assessment Pertaining to and (C), System Expansions and (2)(o)-(p); Improvements. OAR 340- 090- 0790(1); and OAR 340-090- 0810(1)(a) 5 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) A schedule for implementing OAR 340- • Proposed Timeline, pg No Specify in the timeline on pg 21 that all eligible costs ORSAC also indicated collection program 090- 21 will be funded by end of 2027. the need for estimated expansions and 0790(1)(a) • Initial Outline for reimbursements per improvements throughout the Disbursement of Local Add to either of Table 1 or Table 2 on pg 22 the local government to be state. Government System estimated system expansion disbursements for each added to the plan. Expansions, pg 22 local government. • Revised Local Government Funding Schedule, pg 22 The proposed approach for OAR 340- • Revised Local No Expand Table 2 on pg 22 to show how each funding funding eligible costs 090- Government Funding request has been categorized by its priority. identified in the needs 0790(1)(b Schedule, pg 22 assessment in a way that ) • Assessing Priority of upholds the prioritization laid Funding Requests, pg out in rule, with funding 23 offered to local governments • Evaluation of Funding in higher tiers of priority Requests, pg 23 before it is offered to local • Proposed Review governments in lower tiers of Criteria, pg 23-25 priority. A description of how the use ORS • Proposed Review No CAA indicated on pg 24 “Support for Existing ORSAC also requested of existing infrastructure will 459A.875( Criteria, pg 23-25 Services and Infrastructure” as a review criterion for this detail be added. be maximized. 2)(a)(C) its follow-up needs assessment, the Oregon Recycling System Optimization Project (ORSOP). Summarize how CAA applied this criterion to develop a plan for system expansion that makes maximum use of existing infrastructure. Provide data on anticipated use of existing infrastructure across the state, draw out particular on-the-ground examples, or do both. The estimated amount of OAR 340- • Initial Outline for No Update the amounts per year spent on system ORSAC feedback funding to be disbursed, 090- Disbursement of Local expansion in Table 1 on pg 22, replacing the ranges aligns with DEQ’s here. overall. 0790(1)(e) Government System with singular estimates. The estimated amount of and (2)(b) Expansions, pg 22 funding to be disbursed to • Revised Local Integrate estimates of system expansion expenditure individual local governments. Government Funding per local government into this section. Schedule, pg 22 A method for determining OAR 340- • Evaluation of Funding No On pg 24 CAA indicated that efficiency measures funding or reimbursement Requests, pg 23 “may be developed for considering applications for 090- funding.” That implies that CAA either intends to 6 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) amounts under ORS 0790(1)(d • Proposed Review offer additional (non-statutorily required) funding, or 459A.890(5) Criteria, pg 23-25 intends to apply some screening criteria to its ) and • Accountability statutorily-mandated funding requirements. Please OAR 340- Mechanisms, pg 26 clarify and provide more detail. 090- 0810(1)(a) (A) A process, including the ORS • Dispute Settlement No The approach for dispute settlement described on pg process timeline, for how the Process relating to 25 involves CAA convening a multistakeholder 459A.875( producer responsibility Service Expansion working group that will confirm types of expenses organization will resolve any 2)(e) Funding Requests, pg eligible for compensation. Such a working group may disputes involving 25 serve a useful purpose, but statute requires the compensation of local program plan to lay out a clear pathway, including a governments and local timeline, for effective resolution of conflicts; the governments’ service working group proposal is insufficient to meet this providers under ORS requirement. 459A.890(5). A description of the process a OAR 340- • Accountability No Add a description of the proposed approach to ORSAC would like to local government, a local Mechanisms, pg 26 invoicing and accountability, informed through the see sample invoice government service provider 090- ORSOP survey, to the next draft of the plan. forms included in a or other persons authorized 0810(1)(a) subsequent draft. by a local government to (B) receive payment must follow to invoice the producer responsibility organization for reimbursement of costs or advanced funding. The information provided may include sample forms for reimbursement or advanced funding requests. 4. Methods for calculating and OAR 340- • Transportation No See nested requirement-specific recommendations reimbursing transportation 090-0780 Reimbursements, pg below. costs and 25-30 Methods for advance funding ORS • General Model, pg 27 No The proposed method entails, per pg 28, pre-approval Concerns about and reimbursements to local 459A.875( • Registration of of eligible shipments. This has the potential to slow potential inefficiencies governments, a local 2)(o) Claimants, pg 28 down shipments and disrupt operations, unless CAA in pre-approval were government’s service can guarantee near-instantaneous review and approval voiced by ORRA in provider or other person of requests. 7 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) authorized by the local • Timing of Submissions Describe how the proposed approach will balance the public comment and by government to receive and Reimbursements, need for efficiency with the need for adequate ORSAC. transportation pg 28 oversight. reimbursements. • Claims Submission Content, pg 28 • Timing of Payments, pg 29 A process, including the ORS • Dispute Settlement No CAA indicated on pg 29 that, in the case a CRPF ORRA sought more process timeline, for how the 459A.875( Process, pg 29 rejects a transported load due to contamination, the clarity on load producer responsibility 2)(e) transporter shall incur all costs associated with the rejection. organization will resolve any load, which will not be eligible for reimbursement disputes involving from CAA. compensation of local Provide additional detail here—for example, proposed governments and local standards for load rejection accepted across governments’ service participating CRPFs—to ease local government and providers under ORS service provider concerns with respect to financial 459A.890(2). liabilities due to the risk of load rejection. See comments above related to dispute resolution for system expansion requests – they are also applicable to dispute resolution for transportation reimbursement. Methods for calculating OAR 340- • General Model, pg 27 No CAA proposed to use standardized rates per ton per ORSAC recommends reimbursement amounts for 090- • Establishing Standard mile for these reimbursements. DEQ has concerns weighing the proposed transportation costs in 0780(1) Rates, pg 28 with this approach, which could penalize rural method (standardized accordance with established • Voluntary communities, especially those distant from the major rates per ton per mile) requirements, including: Transportation Option, trucking corridors (I-5 and I-84, Hwy 97). against a zoned pg 29-30 approach with • Opportunities for Indicate how CAA will address possible rural inequity geographic Efficiency and related to transportation reimbursements. differentiation of Effectiveness, pg 30 transportation costs an approach for enabling OAR 340- Establishing Standard No The intent to account for fluctuations in input costs in ORRA and ORSAC are fluctuations in input costs, 090- Rates, pg 28 the reimbursement rates is noted, but the approach to also seeking this detail. such as fuel, to 0780(1)(a) doing so is not described in detail. automatically factor into Provide the calculation methodology, including data the reimbursement sources, and the process/schedule for updating amounts over time; standard rates per mile. 8 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) a voluntary option that OAR 340- Voluntary Transportation Conditionally CAA proposed to provide such an option on pg. 29- allows local governments 090- Option, pg 29-30 30. This content is approvable upon necessary updates or service providers and a 0780(1)(b to other subsections of the Transportation producer responsibility ) Reimbursements section. organization to agree to transfer some or all transportation responsibilities to the producer responsibility organization or coordinating body; a means of accounting for OAR 340- Proposed Method for No A general methodology is laid out in page 27-29 and proximity to an 090- Calculating it accounts for multiple factors (different loads appropriate commingled 0780(1)(c) Transportation Costs, pg including mixed loads, distances), but it is silent on recycling processing 27-30 how CAA will determine whether a closer facility facility or responsible end (that a community bypasses) has “capacity.” market that has capacity to Update this section to explain how facility capacity process or recycle the will be assessed. material and other factors that could affect transportation costs; a description of the OAR 340- Consultation Process, pg No CAA conducted preliminary consultations that mandatory consultations 090- 26 informed its approach, but planned to consult about with local governments 0780(1)(d detailed methods later as part of the ORSOP. and service providers that ) List Local Governments and Service Providers informed the development consulted across the state and describe the feedback of the methods; and received. a description of n/a Material Compaction, pg n/a The section entitled “Material Compaction” on pg 30 ORRA and ORSAC opportunities that were 30 addressed this issue; however, it did not clearly state requested additional identified for increasing what options for compaction will be clarity on this section. efficiency and achieving allowed/disallowed or incentivized/disincentivized. full transport loads (e.g. an Enhance this section with these details. approach for balancing the environmental benefits of transportation efficiency with the environmental impacts of baling) 5. Approaches to Additional ORS Additional No See nested requirement-specific recommendations Reimbursement and Funding 459A.875( Reimbursement and below. for Local Governments 2)(o) 9 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Funding for Local Governments, pg 30-32 Methods for advance funding Contamination Reduction No Break this into two subsections, funding for and reimbursements to local Programming, pg 30-31 contamination evaluation (ORS 459A.890(3)) and governments, a local funding for contamination reduction programming government’s service (ORS 459A.890(4)). Also update the approaches provider or other person proposed to account for rulemaking 2 rules. authorized by the local government to receive funding for contamination reduction. A method for estimating and ORS Ensuring 10% Post- No Provide more detail here on the specific requirements Incentivizing or reimbursing the possible 459A.890( Consumer Content in Roll for local governments to make claims for payment to recommending LG use additional costs of local 6) Carts, pg 32 cover the possible price premium between 10%+ PCR of consistent colors was government compliance with content roll carts and virgin-material carts. recommended by ORS 459A.908 (the ORSAC and Metro. requirement that all roll carts Consider incentivizing local governments’ use of purchased after January 1, consistent container colors (blue for commingled 2026, must contain at least recycling, orange for glass, gray/black for glass, green 10% post-consumer recycled for compost). content). Any additional funding to ORS Measures to Protect No CAA’s proposal on page 33 to provide local local governments or other 459A.875( Ratepayers from governments with an annual summary of RMA measures for the purpose of 2)(k) Increased Costs, pg 32-33 funding in relation to materials collected in their protecting ratepayers from jurisdictions could enable local governments to increased costs. consider the funding when conducting ratepayer reviews. Some local governments have expressed interest in more frequent access to additional information from the PRO, such as monthly transactional data for inbound loads of commingled recyclables received by the processing facilities. Update this section after consultation with local governments about CAA’s potential to provide them more detailed and frequent information. 6. Methods for achieving ORS • Proposed Approach to No DEQI recognizes that CAA’s proposal to fulfill the convenience standards by 459A.875( Achieving convenience standard is not yet fully-developed, supporting and expanding 2)(a)(B), Convenience pending results of outreach to existing depots and existing collection points and 459A.896( Standards, pg 36-42 other potential collaborators through ORSOP. While 1), and DEQ is amenable to finer details of this section 10 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) by creating new collection OAR 340- • Appendix D, awaiting CAA’s third draft submission, DEQ is points, including: 090-0640 Stakeholder concerned with the current proposal’s general Engagement, pg D19- directionality—i.e., CAA is pursuing approaches that 21 may be insufficient to meet the convenience • Appendix F: PRO standards. Depot Lists and Coverage, pg F27-35 In the second draft of the plan, please 1. ensure and communicate a holistic understanding of what is required by the convenience standards, and 2. describe how any proposal for alternative compliance would meet existing and proposed criteria in rule language at OAR 340-090-0640(6). In its third draft of the plan, CAA should reflect the results of its broad outreach through ORSOP, including partnerships that can collectively deliver a program that meets the standards. The updated draft should also reflect comprehensive research of Oregon facilities that may meet the definition of “existing depot,” which can be demonstrated through an updated existing depot list in Appendix F. (With respect to ensuring and communicating an understanding of the requirements) Amend areas of the plan where the convenience standard is mis- or underrepresented, such as: • The infographic and bulleted list on pg 36 is not entirely aligned with OAR 340-090-0640. The convenience standard requires collection points for materials on the “enhanced” list in cities with populations of 4,000 (outside the Metro region) and 8,000 (within the Metro region). • On pg 37 CAA suggests that by offering collection of basic materials at existing depots, it is going beyond the convenience standards. That is not the case – the requirement to contract with existing depots where possible to collect all PRO materials must be met; doing so is not going beyond requirements. 11 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) See further recommendations on nested requirements below with respect to application of the “existing depot” definition, development of collaborations, and alternative compliance. a description of how the ORS Network Analysis and Conditionally CAA noted on pg 37 (last full paragraph, fourth line) ORRA seeks clarity on prospective PRO will uphold Mapping, pg 37-38 that, as a part of the ORSOP work in Apr-Aug 2024, how existing depots are the requirement to contract, 459.875(2 “permitted DEQ facilities and existing local being identified. where possible, with existing )(a)(B) government depots will receive no less than two depots or drop-off centers; and ORS specific and direct requests to consider joining the PRO depot network.” 459A.896 (1)(a) DEQ appreciates CAA’s intent to reach to all existing facilities, including tribal facilities (as noted on pg 116), as part of ORSOP, and considers that general approach to be sound. However, note that there are no “DEQ-operated facilities.” Also, the definition of “existing recycling depot” at OAR 340-090- 0640(1)(a) is broader than facilities permitted by DEQ and existing local government depots, and encompasses some “refuse-related locations” that CAA refers to on pg 38 in paragraph 1 as possible partners to meet convenience standard gaps after all “existing depots” are contracted with. Include all facilities meeting the “existing depot” definition in the gap analysis. Confirm that CAA will follow OAR 340-090- 0640(1)(a) and reach out to all existing recycling depots as defined in rule. Consider adding a bulleted list in the plan’s main body representing a diversity of locations that meet the definition of “existing depot.” Also, provide a comprehensive list of existing depots in an updated Appendix F and indicate which facilities voiced interest in collecting PRO materials. Inclusion of a list of existing ORS Appendix F: PRO Depot n/a Appendix F is difficult to follow. It could be GPI sought more depots, with indication of Lists and Coverage, pg improved by: information on the those that are possible and 459.875(2 F27-35 • Confirming that Tab 1 consists of sites that meet depot system and not possible to contract with; )(a)(B) the “existing depot” definition in rule at OAR proposed locations. 340-090-0640(1), and distinguishing those that 12 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) and ORS are possible to contract with from those that are ORSAC recommended not. updating Appendix F to 459A.896 • Moving events out of Tab 1; they could appear in show which depots (1)(a) a separate Tab. have agreed to • Summarizing results of Tab 1 by city and county collaborate. (number of existing depots that are possible to contract with in each city and county). • Including the summarized results of Tab 1 into the relevant rows of Tabs 2 and 3 (i.e., the numbers of existing depots per county and city), so that the reader sees multi-material collection points required and existing depots in a jurisdiction side by side. Consider highlighting the rows where the required number of multi- material collection points exceeds the quantity of existing depots. Consider deleting the “Meets Base” and “Meets Enhanced” columns. • Clarifying what is represented in the column “Population Covered by Existing Sites” and considering applying this column differently so that it is responding to a specific requirement of the convenience standard (for example, the requirement that 95% of Oregon residents live within 15 miles of a collection point for each material). • Adding a Tab 4 where the plan for addressing those cities and counties that cannot meet the convenience standard through existing depots alone are given further treatment. It should be clear from this table, how CAA is proposing to meet the convenience standard in each of these jurisdictions (i.e., establishment of new depots, return-to-retail for specific materials, collection events or on-route collection to stand in for a certain number of required collection points, etc). Inclusion of tribal depots ORS Appendix F: PRO Depot No On Page 116 in the Equity section, CAA pledged to among the list of “existing Lists and Coverage, pg identify tribal depots and then prioritize working with 459A.875( depots” and pursuit of F27-35 them to collect the PRO acceptance list materials. But 2)(a)(B) 13 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) efforts to contract with and OAR the list of “existing depots” in Appendix F does not those depots.* include any tribal depots. 340-090- 0640(1)(a) Include any depots operated by Tribal Nations and (C) indicate whether or not they intend to collaborate. identification of key n/a • pg 41-42 (subsection is n/a Entities that were engaged with in development of the ORSAC recommends collaborators that the seemingly unnamed) plan are listed in Appendix D; additionally, on pg 41, adding more detail on prospective PRO plans to • Appendix D, CAA lists nine non-profit and/or minority- prospective contract with, including Stakeholder owned/operated organizations that they consulted collaborations with community-based Engagement, pg D19-21 regarding potential collaboration to operate collection local community-based organizations and minority- points. organizations, women owned/operated businesses;* and minority-owned Generally DEQ appreciates CAA’s initiative to businesses and tribal engage CBO and minority-owned/operated nations. businesses. Note that interested parties are paying keen attention to CAA’s consultative process; and ORSAC recommends DEQ recommends CAA only name organizations in asking permission such lists if they have engaged with them very before naming CBO substantively. partners in the plan. Also consider exploring partnerships with retailers to establish return-to-retail sites, including for aerosols and pressurized containers (see relevant recommendations on the performance standards below). plans for providing enhanced OAR 340- Underserved Populations, No CAA noted they will explore the potential of City of Portland convenience to underserved 090- pg 42 enhanced curbside/valet collection for residents that recommends clearly populations;* 0640(2)(h might not be able to access depot points. defining “valet ) This is lacking detail, in that it describes options that services.” CAA “could” undertake without committing CAA to ORSAC’s feedback actually implement any. aligned to DEQ’s. Describe updated, firmer plans to provide enhanced convenience to underserved populations. a description of how the n/a pg 41-42 (subsection is n/a As mentioned above, CAA listed nine prospective prospective PRO will engage seemingly unnamed) CBO/minority-owned or operated partner with local community-based organizations on pg 41 related to staffing and organizations and women and maintaining depots. Collection events are also a key minority-owned businesses to part of CAA’s proposal to meet convenience develop collection points;* standards; on page 39 the possibility of working with 14 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) a partner CBO or local COBID- certified contractor to host or staff collection events is noted. DEQ welcomes more detail on these prospective collaborations. See below DEQ’s feedback regarding the possible use of collection events to meet convenience standards. descriptions of any OAR 340- • Closing Gaps to Meet No CAA signaled on page 38-39 the intent to request To contextualize alternative collection 090- Convenience Standards, alternative compliance (use of on-route collection alternative compliance programs being proposed to 0640(6) pg 38-39 and/or collection events) in some locations “where proposals within substitute for convenience • Running Collection barriers exist in establishing depots.” In Appendix F longer-term vision, City standards, including: Events, pg 39, and on pg 31-32, counties relevant to the prospective of Portland • Requesting Variances, request are indicated with the symbols “@” and “©." recommends discussing pg 39 timelines for moving For DEQ to approve such a request, CAA would need PRO materials to the to enhance this proposal to clarify the specific USCL. request(s) and provide the necessary supporting information per proposed rule OAR 340-090- ORSAC recommended 0640(6)(c)(A)-(D). DEQ would like to further note adding analysis of the that it considers these criteria fairly difficult to meet alternative compliance for a collection-event based approach, which would proposal against the be better suited as a bridge to a fixed location criteria in rule 340-090- approach, not a permanent strategy. 0670(c)(A)-(D). ORSAC also expressed Alternative compliance proposals should also be concerns regarding an situated within the broader context of program goals, exclusively on-route with consideration of longer-term vision for each approach not material. maximizing current infrastructure and not serving houseless and other currently underserved community sectors. an assessment of the OAR 340- No Analysis of how the alternative compliance approach impact on the achievement 090- impacts collection rates is not provided. of collection targets; 0640(6)(c) Such an assessment would be particularly important (A) for alternative compliance proposals that would substitute mobile collection events for fixed locations, or for a proximity exemption variance that would result in a lower quantity of fixed locations. 15 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) an assessment of the OAR 340- No On pg 39 CAA noted that on-route collection service Metro and City of impact on equitable access 090- for PRO materials would be provided at no cost to Portland seek info on to and provision of 0640(6)(c) single family and multifamily properties, suggesting accessibility for recycling across regions (B) equitable access for these generators under an multifamily and and diverse populations;* alternative compliance approach using on-route commercial generators. service. However, CAA did not address access for ORSAC felt that commercial generators or logistical and space information on challenges of offering curbside collection for source- accessibility for segregated materials at multifamily sites. commercial generators Equitable access for all three of these user groups is was lacking. equally important for an alternative compliance proposal that would involve collection events. How would a collection event meet the needs of a commercial generator with considerable quantities of EPS, for example? Describe how an alternative compliance proposal would impact equitable opportunities to provide and access services, i.e., the economic opportunities offered to different prospective partners under a fixed location-based vs an alternative compliance approach. demonstrated support of OAR 340- No This is not included in the plan, but is a gap DEQ relevant local 090- would expect to see filled after the ORSOP work is government(s) for the 0640(6)(c) conducted. proposal and a description (C) of how prior consultation with affected local government(s) was taken into account in planning; and an assessment of OAR 340- Updated proposed rule language requires an environmental outcomes. 090- alternative compliance proposal to assess 0640(6)(c) environmental outcomes of an alternative compliance (D) proposal. Add relevant language to address the suitability of different PRO materials for commingling (if proposed) and for various modes of collection (on- route, event collection, etc) if proposed. (for mobile collection OAR 340- No This was not included in the plan, but is a gap DEQ events being proposed as 090- would expect to see filled after the ORSOP work is an alternative program) conducted. 16 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) the planned frequency of 0640(6)(b these events and how the ) proposed schedule will provide adequate predictability for the public. (for mobile collection OAR 340- No This was not included in the plan, but is a gap DEQ events being proposed as 090- would expect to see filled after the ORSOP work is an alternative program) 0640(6)(b conducted. the plan for sufficiently ) advertising the events (for mobile collection n/a n/a This was not included in the plan, but updated content events being proposed as could be provided in a subsequent draft. an alternative program) how the planned events will uphold best practices for mobile collection events: for example, through pre-event outreach coordinated with relevant local governments, community- based organizations, and service providers; policies and processes to ensure adequate staffing, management of traffic flow, and safety; and contingency plans for responding to larger-than- expected turnout An accompanying OAR 340- No On page 39-40, CAA noted that, in the event a justification if requesting 090- suitable location cannot be identified for a permanent temporary variance from 0640(7) collection location or collection event, CAA will convenience standards. request a proximity exemption variance, with the distance being a “reasonable” 15 miles from the established depot serving as the basis of the proximity exemption to the jurisdiction where the PRO depot location/collection service is lacking. 17 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Except in some rural cases, DEQ is reluctant to consider 15 miles a convenient distance to travel for a depot. For example, in the metro area, if CAA were to establish a collection point at the Metro Central Transfer Station, under this proposal no additional collection points would be required as far away as Parkrose, Lake Oswego, or Beaverton. DEQ does not anticipate granting such a variance for urban areas. DEQ may consider approving 15-mile proximity exemption on a case-by-case basis for certain rural areas with demonstrated local government support. Outlining a plan for depot Start-Up Approach for No On pg 50 CAA noted that the first-phase PRO development that will succeed Establishing the Depot collection points will be open by June 30, 2025, and in meeting collection, Collection System, pg 48- additional sites will be onboarded “over the course of convenience and performance 50 the program plan.” This leaves ambiguity regarding standards by the end of the how many sites would be established prior to first program plan period. December of 2027. Expand the detail and scope of this section. For example, include a schedule for both start-up and the program plan period itself, and include interim benchmarks toward meeting the convenience standard. Confirm that the convenience standard will be met by the end of the first program plan period. Outlining a plan for depot Start-Up Approach for n/a On page 50, CAA indicated that collection points Metro would like to see development start-up Establishing the Depot providing continued opportunity to recycle in Metro the strategy for activities that collection points Collection System, pg 48- areas where items have come off of the local continued collection of have been opened provides 50 government lists will open by June 30, 2025, but a items moving off of continued opportunity to detailed plan of how this will be achieved is not local government recycle in metro areas where included in the first draft. Consider adding this to this collection lists. items formerly on local section. government recycling acceptance lists have moved to Note that some local governments expressed interest the PRO recycling acceptance in off-ramping materials over time rather than list. immediately upon start of the program. A proposed rule included in rulemaking 2 is relevant here. 7. Methods for achievement of OAR 340- Proposed Approach to No performance standards, Addressing 090-0650 including 18 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Performance Standards, pg 42-48 a description of how the PRO OAR 340- • Annual Audits, pg 44 No This requirement was partially addressed through the ORRA considers that will monitor sites and 090- • Audit Criteria, pg 44 proposed approach to site auditing on pg 44, but not sites should receive an services on a regular basis to 0650(1)(a) fully. A mix of on-site and desktop audits is proposed, annual on-site visit. ensure compliance but the plan did not provide any sense of how much of each type will occur. DEQ considers that most, if not ORSAC recommended all, sites should receive an on-site visit as part of the onsite visits with a mid- initial year of auditing. year check-in or desk Consider auditing more frequently than once a year audit. and adding additional components to the auditing process. plans for education and OAR 340- Promotion of the PRO Conditionally This requirement was addressed under the “Promotion outreach regarding the PRO 090- Depot Network, pg 47 of the PRO Depot Network” section (page 47), as well Recycling Acceptance List in 0650(1)(c) as the “Education and Outreach” section beginning on a manner that is clear, page 84, which includes descriptions of promotion on culturally relevant, CAA’s website, customizable collateral made accessible, and available to LGs (via a portal), best messaging understandable to diverse approaches, etc. audiences, including through its website The approach to education was well-described, except for one component. Include a specific approach to educate commercial generators. protocols for minimizing the OAR 340- Contamination Conditionally On pg 44-45, the approach to addressing contamination of materials 090- Management, pg 44-45 contamination broadly fulfills the requirement in rule; delivered to collection points, 0650(1)(e) however, include more detail on “initial sorting,” as it including screening and then has permitting implications – where will the sorting accepting and managing the occur, how will it be done, etc. contamination appropriately, rejecting the contamination, or both, and must also include providing service users with information on proper recycling or disposal options for non-accepted materials. Information on how OAR 340- Block White EPS Foam No CAA noted on page 53 that they intend to work with expanded polystyrene will be 090- Management, pg 45 specific PRO depot locations or partners to house densified before non-thermal foam densifiers for consolidating foam 19 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) transportation of more than 0650(3)(a) from surrounding communities. CAA is exploring 75 miles, including indication (B) placing densifiers and exploring mobile densification of the proposed method(s) to near Grants Pass, Klamath Falls, Burns, Redmond, be used and Ontario, The Dalles and Pendleton. consideration of impacts on yield Add more detail about this proposal and demonstrate consideration of impacts on yield, transport quantities, consideration of impacts and worker safety and exposure. on transport quantities (density) assessment of potential safety and exposure impacts to workers Information on how OAR 340- Pressurized Containers No On pg 45-46 CAA noted they will work with DEQ- Metro seeks edits to convenience and 090-0640 and Aerosols, pg 45-46 permitted facilities that offer HHW collections, as Table 4 on pg 46 in performance standards for and well as reach out to contractors that currently host order to portray the aerosols and pressurized OAR 340- HHW collection events to explore collaboration state’s HHW containers will be met. 090- opportunities. infrastructure (and, 0650(3)(b DEQ cautions that a collection approach for these particularly, its gaps) ) materials that is limited to existing infrastructure more accurately. would fail to meet the convenience standard. The plan noted that 94.6% of the Oregon population has access ORRA recommended to some form of HHW collection; however, that partnership with access is very limited, temporally and geographically, PaintCare for collection for most of those residents, and the access for of aerosols. commercial generators is much more limited than that for residential generators. ORRA sought clarity on who would haul Note that, contrary to paragraph 2 of pg 52 beginning pressurized cylinders with “CAA recognizes,” it is possible to collect this and aerosols. material at PRO- and retailer-operated collection points; rulemaking 1 rules do not require the material to be handled through HHW infrastructure only. Explore return-to-retail options for these materials and revise the next draft with details of retailer partnerships achieved. CAA could also explore partnership with PaintCare for collection of aerosols. 20 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Include in a subsequent draft a check list and screening procedures for collection points that will receive these materials, and information on arrangements made for the hauling and processing of these materials. Other aspects of the plan to set n/a • Compensation, pg 47 n/a up a network of collection points • Reuse, pg 48 for PRO Recycling Acceptance list materials, including: Principles and methods for n/a Compensation, pg 47 n/a CAA was vague regarding this, noting on page 47 that ORSAC requested compensation of collection they propose to contract with each location for wages addition of the point staff;* and and salaries for additional depot employees needed to following details: monitor and maintain PRO materials. anticipated wage scales DEQ welcomes more detail. for staffing compensation, any compensation per amount of materials collected, and overhead. Any plans for n/a Reuse, pg 48 n/a On page 47 CAA noted interest in working with GPI recommended accommodating collection of member producers to collect reusable packaging at incorporating a focus reusable packaging within depot locations, but does not make a concrete on glass into the reuse depots and collection points; proposal. DEQ welcomes more detail. For example, section. does CAA envision separating out reusable from single-use pressurized cylinders and transporting them back to the manufacturer for reuse, something envisioned in the performance standard rules? How would CAA handle reusable wine bottles returned to its depots? 8. Proposed collection target OAR 340- Proposed Depot Conditionally The per-material collection rates of 5.9-15% per and sufficient justification for: 090- Collection Targets, pg material laid out on pg 51-54 are premised upon an 0660(2)(b 50-54 assumption, on pg 50, that 15% of the Oregon ) population will participate in depot and related services. Reconsider this number as it may be a low estimate; recently in Tacoma and Medford, glass depots have collected >75% of the volume expected from on-route collection, suggesting higher rates of participation are possible. A higher estimate of participation would help CAA to meet the statewide plastics recycling goal. 21 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) If CAA views 15% a realistic participation goal, other means of meeting the plastics recycling goal will need to be pursued. steel and aluminum aerosol Steel and Aluminum Conditionally See entry above regarding the plan for meeting the packaging Aerosols, pg 51-52 convenience and performance standards for aerosols. If the 11.6% target collection rate is premised on using existing HHW infrastructure only for collection, it may be low, and should be revised to account for additional collection through return-to-retail (if successfully incorporated into the collection point network). polyethylene film packaging Polyethylene Film Conditionally See note above regarding low targets, of particular Packaging, pg 54 concern with the plastic items since DEQ has flagged that CAA’s estimate of the plastic recycling rate is likely too high and that a plan is needed for additional programming during the first program plan to achieve the 25% statewide plastics recycling goal for 2028. single-use pressurized Single-use Pressurized Conditionally The concerns expressed above regarding management cylinders Cylinders, pg 52 of aerosol packaging exclusively through existing HHW infrastructure apply to pressurized cylinders as well. aluminum foil and pressed Aluminum Foil and Conditionally CAA’s estimate presumes 6,300 total tons of material foil products Pressed Foil Products, pg in the state, which is referred to as an estimate of 52 residential material generated in 2023. Clarify whether or not this estimate accounted for commercial/multifamily generation. block white expanded Block White Expanded Conditionally See concerns about low rates for plastic collection polystyrene Polystyrene, pg 53 indicated above with respect to PE film, also relevant here. polyethylene and PE and PP Lids and Caps Conditionally polypropylene lids and and HDPE Package HDPE package handles Handles, pg 53-54 Plastic buckets, pails and Plastic Buckets, Pails and Conditionally storage containers Storage Containers, pg 54 Glass n/a Glass, pg 54 n/a CAA proposed a collection rate of 53% (the threshold GPI considered the rate of 45% is set in rule under OAR 340-90- 3,100 additional ton 0660(2)(a)), premised upon collecting an additional recovery target low. 3,100 tons of material beyond what is already 22 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) collected by local governments (38,000 tons), for a total of 41,100 tons collected. DEQ seeks more detail about the 3,100 ton estimate. See reference to Tacoma and Medford >75% glass collection rates above, suggesting that 53% could be low. 9. Any proposal to add a new ORS Proposed Additions to No See below recommendations specific to the proposals ORSAC requested covered product to the 459A.914( the USCL, pg 57-62 for PET thermoforms, blue/green PET bottles, and addition of a more Uniform Statewide Collection 4)(b) spiral wound containers. descriptive narrative of List of materials with the OAR 340- Clearly distinguish among onramp proposals and CAA’s vision for the following supporting 090- advance signaling of forthcoming such proposals by on-ramping of new information: 0630(4)(g plan amendment. materials to the USCL ) DEQ encourages use of the program plan for advance in the short- and long- signaling, to prepare interested parties for forthcoming term. changes, but it need not hold up the approval process for this plan (e.g. if CAA is advance signaling rather than proposing on-ramping of PET thermoforms, DEQ need not hold back approval of this section of the plan on the basis that the relevant subsection does not meet all criteria). Also inform this part of the plan with strategic thinking across multiple elements of the plan, including CAA’s proposal to collect items on the PRO Recycling Acceptance list. If there is a long-term vision to on-ramp an item, it may make more sense to do so in the first program plan period rather than to build out collection infrastructure that will be subsequently retired when the material is moved to the USCL. PET Thermoforms (pg 57-59) a detailed analysis of how the OAR 340- Performance Against No CAA’s analysis is insufficient in some areas as noted The City of Portland proposed covered product 090- ORS Criteria, pg 57-59 below. recommends addressing performs against the criteria 0630(4)(g PET Thermoforms in ORS 459A.914(3); ) Note: in the “Material Status” subsection on pg 57, (clamshells) more CAA should represent clearly that thermoformed PET prominently. tubs are already on the USCL, and as such, CAA needs to already begin working with CRPFs to ensure 23 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) passage of the materials to responsible end markets, in addition to the work proposed in paragraph 3 to ensure PET thermoforms collected by specialized subscription-based collectors go to REMs. The stability and maturity No Add detail here. The plan says that investments are APR recommends more of responsible end “growing” and markets are “developing” but lacks focus on end markets in markets; evidence and specificity; the plan also lacks a this section. commitment to specific actions CAA will take to ensure that markets meet the “responsible” standard. Also, update this section to reflect that some PET thermoforms are on the USCL. The accessibility of No In Table 6 on pg 57, CAA “proposed to facilitate . . . responsible end markets markets between Oregon CRPFs and responsible end markets,” but it is unclear what exactly this means. Add clarifying language. The viability of No See “stability and maturity” above (same DEQ responsible end markets recommendation applies). Environmental health and No The plan noted concern with water usage and safety considerations; wastewater management at end markets. CAA proposes to “examine” and “as needed” develop interventions to reduce water consumption and “improve usage of best practices” in wastewater management. These commitments are vague and non- specific, and fail to consider that in some locations, any use of potable water may be unsustainable. Further, directing more material to such reclaimers will, all other things being equal, increase water demand, not reduce it. Also, there is no mention of contamination management (solid waste), and no evidence that CAA has evaluated actual conditions at existing end markets, making it difficult to evaluate which of them do/don’t meet the “responsible” standard. Beef up the analysis and CAA commitments related to environmental health and safety considerations of adding PET thermoforms to the USCL. 24 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) The anticipated yield loss No Support the analysis with data. for the material during the recycling process; The material’s Yes Plan content is acceptable. compatibility with existing recycling infrastructure; The amount of the Yes Plan content is acceptable. material available; The practicalities of No Add specificity regarding the equipment needed at sorting the material; CRPFs and CAA’s plans to invest in such equipment. Contamination; No In Table 6 on pg 58 CAA has stated that it “proposes to develop mechanisms to address and minimize all these challenges.” Describe what those are. In addition, CAA should specifically detail how it will address the problems caused by “lookalike” PVC packaging and steps it will take to ensure that PVC is kept out of, and removed from, the PET thermoform stream. The ability for waste No The plan lacks specifics; see also “Contamination” generators to easily recommendations above. identify and properly prepare the material; Economic factors; No Widespread acceptance of PET thermoform packaging (via USCL onramp) may change economic conditions at CRPFs. Such impacts are not evaluated, and the plan lacks details regarding how CAA will compensate CRPFs for financial impacts. Also, PET thermoform value in the Pacific Northwest is not the same as in California. Environmental factors No No evaluation is provided. from a life cycle perspective; The policy expressed in No Plan is silent on these criteria. ORS 459.015 (2)(a) – (c); 25 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) investments or other actions • Performance Against No The plan largely discussed actions that CAA “could” that the prospective PRO will ORS Criteria, pg 57-59 or “may” take. Actual commitments are limited in take to support the inclusion • Proposed Action Steps both number and potential benefit, and generally lack of a new covered product— and Timeline for specificity. DEQ chose not to include the material in for example, investments in Inclusion on USCL, pg the USCL in the 2023 rulemaking; CAA has not processing equipment or 59 committed to a specific course of action that increases to the processor adequately or sufficiently changes the reasons for commodity risk fee to DEQ’s prior decision. compensate commingled recycling processing facilities for higher costs; and a proposed schedule for Conditionally Two different schedules for on-ramping thermoforms adding the product to the were noted in the plan; July 1 2027 on page 57 and List, allowing adequate time “by 2027” in Table 12 on page 71. for updating education and Update the language to specify which of these two outreach materials to inform dates applies. Either would provide adequate time to the public of the change. update outreach materials, but the plan should clarify the timeline. Transparent Blue and Green PET Bottles (pg 60-61): A detailed analysis of how OAR 340- Performance against ORS Conditionally CAA provided this analysis but there is some lack of ORRA and ORSAC the proposed covered product 090- Criteria, pg 60-61 clarity to be addressed; is there a meaningful seek clarity on what is performs against the criteria 0630(4)(g difference between “lightly pigmented” and “darkly meant by “transparent.” in ORS 459A.914(3); ) pigmented” green and blue? If so, how does CAA propose to mitigate impacts? Otherwise, plan content is largely acceptable. See comments below. The stability and maturity Yes Plan content is acceptable. of responsible end markets; The accessibility of Conditionally CAA could support the analysis with feedback from responsible end markets CRPFs. The viability of No “Yield loss . . . is not significantly different . . . (and) responsible end markets can be minimized by optimizing equipment and processes.” Does CAA intend to help CRPFs and/or reclaimers “optimize equipment and processes”? Unclear. Environmental health and Yes Plan content is acceptable. safety considerations; 26 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) The anticipated yield loss Conditionally CAA could support the analysis with feedback from for the material during the CRPFs. recycling process; The material’s No Add clarity: are there problems with sorting darker compatibility with existing blue/green plastic materials? recycling infrastructure; The amount of the Yes Plan content is acceptable. material available; The practicalities of No The plan needs more information about “darker” blue sorting the material; and green plastic materials. Provide evidence of the statement that “transparent blue and green PET bottles are easily identifiable by waste generators.” Contamination; Yes Plan content is acceptable. The ability for waste No No evaluation was provided. generators to easily identify and properly prepare the material; Economic factors; No No evaluation was provided. Environmental factors No No evaluation was provided. from a life cycle perspective; The policy expressed in No No evaluation was provided. ORS 459.015 (2)(a) – (c); investments or other actions • Material Status, pg 60 Yes None proposed. that the prospective PRO will • Performance Against take to support the inclusion ORS Criteria, pg 60-61 of a new covered product— for example, investments in processing equipment or increases to the processor commodity risk fee to compensate commingled 27 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) recycling processing facilities for higher costs; and a proposed schedule for Yes Proposal was immediate and feasible. adding the product to the List, allowing adequate time for updating education and outreach materials to inform the public of the change. Spiral Wound Containers (pg 61-62): A detailed analysis of how OAR 340- Performance Against No The plan referenced DEQ’s prior analysis and public the proposed covered product 090- ORS Criteria, pg 62 finding that the material satisfies DEQ for most performs against the criteria 0630(4)(g criteria. The two criteria for which there are in ORS 459A.914(3); ) outstanding concerns, end market acceptance and life cycle environmental impacts, were not adequately addressed. See comments specific to those issues below. The stability and maturity Yes N/A (already addressed in DEQ’s prior analysis) of responsible end markets; The accessibility of No See “Environmental factors from a life cycle responsible end markets perspective” below. The viability of Yes N/A (already addressed in DEQ’s prior analysis) responsible end markets Environmental health and Yes N/A (already addressed in DEQ’s prior analysis) safety considerations; The anticipated yield loss Yes N/A (already addressed in DEQ’s prior analysis) for the material during the recycling process; The material’s Yes N/A (already addressed in DEQ’s prior analysis) compatibility with existing recycling infrastructure; The amount of the Yes N/A (already addressed in DEQ’s prior analysis) material available; 28 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) The practicalities of Yes N/A (already addressed in DEQ’s prior analysis) sorting the material; Contamination; Yes N/A (already addressed in DEQ’s prior analysis) The ability for waste Yes N/A (already addressed in DEQ’s prior analysis) generators to easily identify and properly prepare the material; Economic factors; Yes N/A (already addressed in DEQ’s prior analysis) Environmental factors No Without clear acceptance from existing regional end ORSAC requests from a life cycle markets, inclusion of paper cans would force addition of information perspective; Oregon’s steel/tin can bales into much longer on the impacts of transport distances, with resulting impacts in shipping steel can bales emissions. These may override the relatively small containing spiral wound benefits of recycling more steel/tin (net of added containers to markets emissions from burning paper). The plan lacks such outside Oregon. an analysis. Add this analysis to a subsequent draft. Without such an analysis, it is difficult to know if the on-ramping proposal is environmentally desirable. The policy expressed in Yes N/A (already addressed in DEQ’s prior analysis) ORS 459.015 (2)(a) – (c); investments or other actions • Material Status, pg 61 No Requiring the Oregon CRPFs to ship material to Utah that the prospective PRO will • Performance Against or further will increase their costs, but this is not take to support the inclusion ORS Criteria, pg 62 accounted for in the Processor Commodity Risk Fee of a new covered product— • Proposed Action Steps and CAA does not propose to provide compensation. for example, investments in and Timeline for Clarify whether or not CAA proposes to make such processing equipment or Inclusion on USCL, pg investments. increases to the processor 62 commodity risk fee to compensate commingled recycling processing facilities for higher costs; and 29 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) a proposed schedule for Yes The proposal is immediate and feasible. adding the product to the List, allowing adequate time for updating education and outreach materials to inform the public of the change. 10. Efforts proposed to ORS • Specifically Identified No This section must be updated with content addressing CL, FPI, and PI support collection, processing 459A.875( Materials on the DEQ’s expectations for PET thermoforms listed in indicated interest in or responsible recycling of a 2)(g) USCL, pg 62-64 DEQ’s SIM designation in order to meet the collaborating and specifically identified material • Specifically Identified requirement. Otherwise, DEQ conditionally approves sharing existing (SIM), including: Materials on the PRO of (with conditions indicated herein): information with • support for or Recycling Acceptance • CAA’s proposal of specific actions to improve respect to the proposed provision of recycling List, pg 64-66 outcomes for polycoated gable-top and aseptic trials. depot or mobile • Proposal to Trial cartons, nursery packaging, steel and aluminum collection for a SIM; Commingled aerosol containers (DEQ recommends reinforcing • associated education Collection of Non- outreach plans with strategies specific to non- and outreach efforts; USCL Materials, pg residential generators), aluminum foil and pressed • associated investments 66-68 foil products, shredded paper, and glass bottles in processing; and jars, and • associated • CAA’s trial collection proposals for two other development of SIMs (single-use cups and polycoated responsible end paperboard). Conditions for approval are as markets; follows: o Clarify whether or not polycoated paperboard encompasses all or some food serviceware (e.g. cups, paper plates, to-go boxes, etc). o Clarify in the second set of bullets of pg 67 that education efforts will encompass residential and non-residential generators alike. o Incorporate research into the fate of plastic residue at end markets into the project plan. o If the materials will be marketed separately or differently from the reporting categories designated in rule (see proposed rule 340- 090-0670 (6)(c)(B)(i)), propose disposition reporting categories for the materials collected in the trials. 30 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Otherwise, while first draft plan content with respect to the trials is sufficient to conditionally meet the requirement, DEQ recommends that CAA further inform the trial plans through engagement with producers that indicated interest in public comment. With respect to PET thermoforms, the efforts described to support their responsible recycling lack detail (see plan, page 59). For example, how will CAA “facilitate end market demand” and “address design issues that hinder PET thermoform recyclability?” how the proposed approach n/a n/a Evidence of consultation with TRP, NAPCOR, APR, has been informed by Sonoco, and others was provided, with many consultations with interested additional consults proposed. parties; a sequenced approach to n/a n/a CAA proposed a sequenced approach (trial collection, implementing large-scale including design/planning and consultation with improvements if they are relevant partners) for polycoated paper and plastic required to address the cups. CAA also proposed a sequenced approach for problems that spurred the thermoformed PET packaging. Less sequencing is designations of multiple (2+) needed for other materials. materials; and any other efforts to ensure n/a n/a The plan noted collaboration with special recycling successful, environmentally- services to ensure that responsible disposition beneficial and responsible requirements are met for PET thermoforms, but failed recycling of a SIM as to note that all CRPFs will also be managing PET required by ORS thermoforms (due to their limited inclusion in the 459A.896(2). For materials USCL via rule). collected through producer take-back initiatives and special recycling services, this could include collaboration with said services to ensure that responsible disposition requirements are met. 11. Achievement of statewide ORS Initial Plastic Recycling No Update plastic recycling rate projections to render plastic recycling goals: A 459A.875( Rate Projections, pg 68- them more accurate. These updates may result in description of how the PRO 2)(a)(A) 72 indication that the 2028 statewide plastics recycling 31 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) will support the collection and and ORS goal cannot be met through existing plans alone; if so, recycling of covered products 459A.875( CAA should revise Table 12 to incorporate additional as necessary to meet the 2)(f) actions, with additional detail on the new actions statewide plastic recycling provided elsewhere in the plan as well, where goal. This subsection could applicable. include: Recycling rate projections for 459A.875( No Projections were provided but they are not accurate— the first program plan period. 2)(f) for example, the denominator excludes non-covered products and the numerator may include plastics other than packaging and food serviceware. Demonstration that plans are 459A.875( No The actual recovery rate is lower than that shown in adequate to achieve the first 2)(a)(A) Table 11 on page 71. See above. No additional plans (2028) goal. are provided (Table 12 does not contain additional commitments, and does not contain analysis demonstrating that the goal will be met). 12. Ensure that four classes of ORS Ensuring Responsible No covered products, identified in 459a.875( End Markets, pg 72-82 ORS 459A.869(7), and 2)(a)(G)- contaminants collected with (I) and those covered products, are OAR 340- managed and disposed of 090-0670 consistent with the goals, standards and practices required by ORS 459A.860 to 459A.975 and transferred to responsible end markets. Provide examples of end ORS Example End Markets, pg Conditionally Examples are provided as required on page 72-73 of markets, as defined in OAR 459A.875( 72-73 the plan, but they are all in North America, which 340-090-0670(1), that may 2)(a)(H)(i) could give the impression that the responsible end use the material collected market regulation restricts trade of recyclables from covered products in the overseas, which is not the case. manufacturing of new Add an international market or two to dispel this products; impression. Describe how the prospective ORS • Verification of No A key missing piece is a detailed standard with PRO will verify that the 459A.875( REMs, pg 73-75 specific criteria and performance indicators that recycling supply chains up 2)(A)(H) • Tracking Material facilities will be verified against. through and including the and Flows, pg 77 Add one to a subsequent plan draft. end markets are meeting the 32 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) “responsible” standard, OAR 340- including through 090- (Step 1) initial screening 0670(2)- Verification of REMs, pg No Obtaining self-attestations is represented as step 1 of a assessments (self- (3) 73-75 3-step verification approach on pg 73. No plans to use attestations). Regarding specific information to fill out the forms (for example, these, the program plan to fill out the field where CAA indicates any evidence could indicate: that supports the self-attestation) are provided. information that will Consider whether any desktop pre-auditing could be be used to complete undertaken to flesh out this section of the self- the screening attestations, as for some markets the self-attestation assessments; and will be the only assurance of responsibility in place until July 1, 2027 (and this is of concern to some interested parties). plans for Yes On pg 73 CAA indicated that it will work with distribution of self- brokers to obtain self-attestations of overseas markets. attestation forms to supply chain entities; and (Step 2) PRO verifications. Regarding these, the plan could include: Details on the Verification of REMs, pg Conditionally No specific verification bodies to be contracted with Metro stressed the verification 73-75 are indicated, but on pg 73 criteria for their selection importance of adequate body(ies) that will are indicated. The criteria are fairly holistic. oversight over be contracted with. Consider adding a requirement that a verification verification bodies. Criteria for review body employ and retain at least two lead verifiers, and approval of which would be the minimum needed to have one verification bodies verifier conduct an audit and the second conduct and verifiers, such internal review. as accreditation requirements, professional liability insurance requirements, policy requirements for prevention of 33 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) conflict of interest, etc. The approach for • Verification Sampling No Among criteria for selection of verification bodies is ORSAC noted the need verifying that Plan, pg 74-75 “a proposal of standards to use to measure REM for a detailed standard. downstream entities • Specific Verification compliance.” DEQ interprets that, under this proposal, meet the Approach by REM verification bodies would be proposing existing “responsible” Standard, pg 75 standards for use. This is problematic, as an initial standard, including • Tracking Material benchmarking of certifications already in existence in Flows, pg 77-78 the materials and recycling industries and identified no existing certification that adequately covers all elements of the “responsible” standard. Develop or adapt an existing standard as part of program plan development, subject to program plan review. ORS 459A.875(2)(a)(H) requires the PRO to describe in the program plan how it will ensure that materials flow to responsible end markets. The EQC established the framework for the “responsible” standard in rule, but to really apply it in audits, detailed criteria and performance indicators need to be developed on its basis. 1. A description of Verification Sampling Yes CAA noted that all facilities will receive a site visit by Metro and City of how facilities will Plan, pg 74-75 July 1, 2027, and one site visit every five years, with Portland stressed the be selected for site desktop audits conducted in years when site visits do need for on-site visits and/or desktop not occur. Criteria by which facilities are to be verifications. verification prioritized for site visits are listed on pg 75. Overall, (sampling plan) the approach appears sound. 2. How compliance • Specific Verification No CAA described pg 75 the approach to verify this with applicable laws Approach by REM element of the “responsible” standard on by reviewing and treaties will be Standard, pg 75 facility operating permits. Ideally verification would verified (element #1 • Tracking Material encompass a full compliance audit; review of of the “responsible” Flows, pg 77-78 operating permits alone would not allow an auditor to standard). capture many compliance issues. Describe how CAA will address this concern, including by encompassing review of reporting required under applicable permits, associated inspection reports, notices of violation, etc., in the verification process. 34 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) 3. How chain of Conditionally The approach to verifying chain of custody was laid custody out on pg 75, and the approach to tracking material transparency will be flows on pg 77. Having a singular tracking system verified (element #2 across all USCL and PRO acceptance list materials of the “responsible” seems ideal but would require collaboration among standard) different parties. Clarify whether CRPFs handling Oregon commingled materials collected for recycling agreed to collaborate with CAA to track their materials. 4. How No The approach to verifying environmental compliance ORSAC reinforced environmental is noted on pg 75.DEQ prefers this read DEQ’s feedback that soundness will be “environmental soundness,” which is distinct, albeit environmental verified (element #3 overlapping, with environmental compliance. DEQ soundness is distinct of the “responsible” would also not consider environmental soundness to from environmental standard) be fully addressed by looking solely at the presence or compliance. absence and quality of a facility’s environmental management system, although this could be part of the assessment. Include a standard for facility verification that encompasses performance indicators for environmental soundness. CAA’s intent to document plastic leakage during site visits is welcomed by DEQ and should be built into the standard. 5. How adequate No Calculation of yield was indicated on pg 74 as yield will be verified something CAA will focus on as a part of its quarterly (element #4 of the auditing, and on pg 75 as something that verification “responsible” bodies will measure and verify within the material standard), including: flow management system. Add more detail to clarify that the proposed method is suited to the overall objective of the 60% yield threshold—ensuring that minority components in a mixed bale are not being diverted to landfill at an end market. Consider adding visual verification of yield during site visits. 35 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Protocols to be OAR 340- Accounting for Conditionally CAA proposed to use controlled blending and mass applied when 090- Disposition and Yield, pg balance rolling average percentage accounting on reporting 0670(2)(d 78-79 page 78-79. These are both proportional accounting disposition for ) methods that would limit the risk of using flexibility and calculating in accounting to omit a downstream market after yield in recycling materials from Oregon mix with materials from supply chains in elsewhere at a previous supply chain node. The which obligated proposal is in line with proposed rules on disposition Oregon materials reporting. mix with non- obligated Approval is conditional upon: materials, such • Editing Figure 6, which in its current iteration does as material from not convey that the rolling average method entails another state. proportional allocation. It rather shows Oregon materials being unequally attributed among four output bales that are presumably potentially going to four different destinations. Edit this figure to depict proportional allocation for both rolling average and controlled blending methodologies (i.e., Oregon input being divided equally among the four output bales). For controlled blending represent the input as a single batch of mixed origin, whereas for mass balance rolling average represent the input as the quarterly average of material that came in from Oregon vs. other sources. • Clarifying the period over which averages are calculated. Specify that this will occur on a quarterly basis, as that would align with the statutory requirement that disposition be reported on a quarterly basis. Plans to incorporate n/a n/a n/a CAA has indicated outside of the plan that it is community feedback into considering including a channel for whistleblower verifications of markets and feedback as part of the end market pre-verification other downstream entities.* process. DEQ welcomes details on this prospective approach. (Pre-verification requirement ORS n/a n/a No request to send materials to non-mechanical for chemical recycling) For a 459A.875( recycling was made. method other than 36 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) mechanical recycling, an 2)(a)(I)(iv analysis of the environmental ) impacts for the proposed method compared to the environmental impacts of mechanical recycling, incineration and landfill disposal as solid waste. Requests for temporary OAR 340- n/a n/a No request for variance from deadlines was made. variance from the screening 090- and verification deadlines 0670(3)(e) indicated in OAR 340-090- 0670(3)(b), accompanied by justification Requests for temporary OAR 340- Requests for Temporary Conditionally CAA requested three temporary variances from the ORRA and ORSAC variance from the required 090- Variance in Verification, required components of a verification, for: recommended that components of a verification 0670(3)(h pg 76-77 1) markets verified by another PRO under another CAA check alignment accompanied by justification, ) EPR program, of standards used for if such requests are being 2) markets that have obtained a relevant certification, variances 1 & 2 with made. Justification could and REM requirements. consist of criteria for 3) landfills and disposal sites in the US and Canada identifying facilities that (as long as they provide a valid operating permit and would receive more limited no info regarding potential noncompliance is provided verifications on the basis of to CAA). characteristics such as location and role in the With respect to requests 1 & 2, CAA proposed the supply chain, variance be attributed for those elements of the “responsible” standard that were covered by the audits done to separate standards. CAA could thereafter organize for verification against remaining elements. DEQ agrees with the spirit of the proposal but approval is conditional upon: • Providing a benchmarking of CAA’s verification standard against other standards to be used to meet requirements in either a program plan or a plan amendment, and • Inclusion of a spot-checking approach for facilities encompassed under the variances for #1 and #2. 37 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Actions and timeline to ORS • Investigating Non- Conditionally On pg 76, CAA pledged that non-compliance findings investigate if the prospective 459A.875( Compliance, pg 75-76 from verifications will be reviewed with the PRO learns of potential non- 2)(A)(H) • Actions to Address verification body and the entity at the earliest compliance through the and OAR Non-Compliance reasonable date, leading to confirmation of the verification/certification 340-090- entity’s non-compliant status and determination of the process or otherwise; 0670(5) level of severity of the non-compliance (three categories are proposed—minor, major and disqualifying). Thereafter the verification report for the entity in question will be shared with DEQ (presumably in quarterly reporting, as required in rule). Overall, the approach to investigation is suitable, with approval conditional upon clarifying that: • Non-proprietary facility identification information will be transmitted to DEQ in verification reports as part of quarterly reporting. DEQ notes that per pg 75 non-compliance will be communicated by verification bodies to the PRO through an audit report that “will not contain detailed information about the entity for confidentiality purposes,” and in turn these reports will be provided to DEQ. DEQ recommends that CAA review OAR 340- 090-0710(4)(d), which identifies several types of information pertaining to end markets that are not proprietary, including business name and location, and material processed. Clarify that this information would be included in the reports. • Adequate information about facility non- compliance to enable public input will be transmitted to DEQ in the verification reports. DEQ considers that information on non- compliance in the reports needs to be sufficient in order for third parties, such as members of adjacent affected communities, to provide public comment as to problems that may have been missed in verification. • The three classes of non-compliance by providing examples of each. 38 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Steps the PRO will take and • Actions to Address Conditionally On pg 76, CAA indicated that it will classify non- ORSAC and ORRA timelines for action when Non-Compliance, pg compliance into three categories of severity – minor, requested addition of verification, certification, or 76 major, and disqualifying, on the basis of ISO 19011. examples of non- auditing indicates that the A relevant plan excerpt is as follows: “Entities with compliance categories, “responsible” standard is not minor and major non-compliance will have the including for the being met; and opportunity to take corrective action….in a defined scenario of a broker period of time. Entities with disqualification non- shipping to a non-REM. compliance will not have that opportunity. Entities with minor non-compliance could be considered a REM during the time they are taking corrective action.” DEQ considers this an appropriate approach, conditional upon CAA: • specifying the amount of time during which entities with minor and major non-compliances can take corrective actions. How the prospective PRO ORS Tracking Material Flows, Conditionally See response re: chain of custody above, CAA ORSAC requested will track material flows, 459A.875( pg 77-78 proposed developing a holistic material tracking details of how parties enabling required quarterly 2)(A)(H) system; DEQ presumes that this is premised upon will collaborate to disposition reporting per and ORS agreed-upon collaboration with CRPFs to track the enable material ORS 459A.887(6)—for 459A.887( materials that they own, and welcomes confirmation tracking. example, through use of a 6) of that. database, including a description of any plans for cooperative development and use of such a database with commingled recycling processing facilities; Description of how the PRO ORS • Auditing the No Approaches to auditing are laid out on pg 80-81. will audit results across all 459A.875( Verification Program, facility verifications. This 2)(A)(H) pg 79-80 section could include: and • Random Bale Auding, OAR 340- pg 80-81 Details of the approach 090- • Auditing the Conditionally On pg 80, CAA proposed to conduct review of taken toward auditing 0670(4) Verification Program, reporting on a quarterly basis, encompassing spot bale the accuracy, quality, pg 79-80 audits and comparing outbound and inbound and comprehensiveness tonnages. CAA also reserves the right to conduct spot of verifications. check visits during verifications and of verification bodies’ documentation as part of this auditing. DEQ 39 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) considers this appropriate, but proposes the following edits to the plan language: “CAA representatives may will accompany the verification body randomly on site visits or and take other steps to audit the verification process. It may will also spot check certain documents that can be made available to CAA.” Furthermore, indicate the extent of such activities that CAA can commit to. Key contractor(s) or n/a Random Bale Auding, pg n/a No key collaborators for the auditing work were auditors for random bale 80-81 indicated. auditing and information about their qualifications; The sampling methodology ORS No See specific recommendations below. to be used for random bale 459A.875( auditing including 2)(A)(H) Quantity of trackers and No CAA proposed to deploy up to 33 trackers per year, to be deployed. OAR 340- with a breakdown as follows: 090- • One deployed curbside per Oregon CRPF 0670(4) • Up to 20 for mixed paper bales, i.e., one for each potential broker • Up to five for carton bales, i.e., one for each potential broker. Add tracking of mixed plastics outbound from CRPFs. Where and how they No CAA proposes to track materials from curbside as will be placed (in well as place trackers in bales at CRPFs. DEQ bales and/or in recommends that CAA also track materials from other consumer bins, what points of collection as well, e.g. multi-family, ICI type of materials, collection, depots. etc. The approach to Yes On pg 81 CAA indicated it is working with different securing the trackers tracking device providers to select the best device in to the targeted terms of functionality and safety. materials and preventing their early destruction or loss. 40 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Safety considerations. The proposed approach to Yes On page 81 CAA affirmed that DEQ will be informed reporting auditing results to if any loads and bales are not compliant with the the department, such as shipment documents, which fulfills the requirement. through the submission of Note that DEQ may audit CAA’s auditing with its audit reports from the own random bale tracking per OAR 340-090-0670(4). auditor or providing access to a user interface where real-time tracking results are visible; Arrangements the PRO ORS • Supporting Responsible Conditionally On page 81 CAA listed some practicable actions that APR sought further proposes to make with 459A.875( End Markets, pg 81-82 it may undertake of relevance to processors, including clarification on the 3- processors to ensure that 2)(A)(H)( • Responsible End providing technical and brokerage services and/or 5% commodity value covered products identified in v) Market Development information on responsible end markets; and budget for REMs. ORS 459A.914 are recycled Guiding Principles, pg purchasing and reselling materials to responsible end at a responsible end market, 82 markets. APR expressed concern including any investment Add to this list: “Other actions as needed to comply regarding a lowest cost- intended to be made to with Oregon law.” based approach to support processors or other market development. practicable action (as defined Regarding investments in practicable actions more in OAR 340-090-0670(5)) to broadly, CAA proposes to set up a dedicated fund for be undertaken; end market development initiatives equal to 3-5% of expected commodity values. DEQ notes that this is useful info, but also notes that the PRO is obligated to provide responsible disposition if doing so is practicable. CAA could add clarification of how it will respond if needs exceed 3–5% of commodity values. Any equity approaches n/a n/a In the Equity section on page 116, CAA indicates that City of Portland pertaining to practicable for materials that it owns, it will explore options to requested more actions such as provide opportunities to small, veteran-owned, information on what development of new minority-owned, and B-corp businesses, as well as type of opportunities markets.* NGOs. are envisioned, and how DEQ welcomes more details in the second draft of the COBID collaborators plan, including clarification of the term “affirmative would be identified. labor practices.” 41 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) ORRA sought clarity on “affirmative labor practices.” Any other information on ORS Producer Exemptions Yes CAA proposed to collaborate with producers seeking how the organization will 459A.875( Under 869(13) exemptions under ORS 459a.869(13) to ensure that ensure that responsible 2)(a)(G) they are being recycled at REMs. management of covered products is maintained through to final disposition. 13. Upholding Oregon’s ORS Upholding Oregon’s No At the top of pg 83, CAA limited its role in upholding materials management 459A(2)(a Materials Management the hierarchy to determination of recycling pathways, hierarchy: )(H)(3) Hierarchy, pg 83 but CAA also has the ecomodulation lever at hand for encouraging upstream changes (i.e., it could try to encourage transition to reuse for specific materials or packages, for example). Target the work described in this section toward a longer-term vision or goal regarding what US materials and recycling end markets will look like. See additional specific recommendations below. Why the end markets • Material-Specific No This section encompassed material-specific foreseen for obligated Strategies, pg 83 subsections, which DEQ considers a good means of materials represent the • Strategy for Glass, pg organizing this work, but the materials of focus are highest and best use on a 83 limited to those for which DEQ has conducted and material-specific basis. This • Strategy for Cartons, pg published LCAs. There are likely other materials for could include: 83 which different end markets have substantially Focus on particular • Strategy for No different impacts – e.g markets for PE film with materials for which Polystyrene, pg 83 respect to plastic pollution. there are significant Add a strategy or strategies for additional plastics differences in the besides polystyrene and, in doing so, bringing environmental impacts information to bear from CAA’s pre-assessment of of different types of markets and industry sources in describing a strategy. markets, such as glass or cartons. Plans to develop new markets • Strategy for Glass, pg No Clarify that CAA will ground-truth the lack of market City of Portland or undertake other practicable 83 capacity for glass, add development of new markets to recommended assessing actions if the end markets the plan if there is in fact a gap in capacity, and the environmental planned for initial use do not remove from the plan consideration use of glass in benefits and costs of 42 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) represent the highest and best aggregate form (DEQ’s glass LCA shows very little different end uses of use. value in that end market). glass including reuse. 14. An education and outreach ORS Education and Conditionally Conditions for approval relevant to specific plan describing how the 459A.875( Outreach, pg 84-98 requirements are indicated below. prospective PRO will meet 2)(a)(J) obligations and cultivate and OAR widespread customer 340-090- awareness and understanding 0650(1)(c) of the Uniform Statewide Collection List and recycling services provided. Goals for education and ORS Goals for Education and Goals language specific to education appeared on pg ORRA considered that outreach efforts and 459A.875( Outreach, pg 84 84 of the plan. Approval is conditional upon: CAA need not educate information on approach for 2)(a) • Removing goal 1b (we question the idea that the public on SIMs, and measuring progress toward generators need to be aware of SIMs), that info on the USCL the goals. Metrics to evaluate • Amending goal 1d to encompass both the USCL should encompass performance could include and the PRO Recycling Acceptance list with material preparation public awareness, public respect to information on how to properly prepare and common engagement, and materials. contaminants. accessibility. An explanation of how the ORS proposed suite of materials 459A.875( and promotional campaigns 2)(a)(J) will support: widespread awareness Supporting Widespread Yes The plan adequately conveyed intention to connect and understanding for all Awareness and with and educate different user groups customers in Oregon, Understanding, pg 85-90. comprehensively. including residents living in single-family homes and multifamily communities, as well as commercial businesses, institutions, and non- governmental organizations. a phased approach that A Description of the Yes Plans for the statewide campaign encompassed an first builds awareness Statewide Promotional initial awareness phase themed “change is here!” among Oregon residents Campaign, pg 90-92 Thereafter, phase 2 will target specific (frequently, and organizations that infrequently and non-participating) audiences with 43 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) change is coming and the specific messages. DEQ considers this sequencing reason change is needed, reasonable and appreciates that advance surveys of and then provides the Oregon residents will inform campaign design. detailed instructions for customers to participate successfully in the new system (with electronic educational materials underpinning both phases). A description of the ORS Schedule Including Yes CAA will create an online portal that local customizable educational 459A.875( Proposed Timing of Start- governments, their service providers and potentially collateral that will be 2)(a)(J)(i) Up Approach, pg 94-97 commercial businesses can access to find, customize, prepared for local print and mail educational collateral at no cost to governments to communicate them. the Uniform Statewide Four batches of materials to be made available to local Collection List, explain how governments sequentially in 2025 are described on pg items should be prepared for 95-96. Specific collateral will include: recycling, and highlight to • Photos/illustrations of accepted items and the public the importance of photos/icons of key contaminants not placing contaminants in • Sample text for informative, motivational, and commingled recycling instructional messaging collection, including: • Handouts and/or mailers, including postcards, collateral that will be brochures, full-page flyers, door hangers, and made available in magnets electronic format to local • Social media toolkits and digital media materials governments and their • Signage for depots, commercial and multifamily authorized service recycling enclosures providers for • Decals for roll carts customization to local DEQ approves of the proposed materials and conditions; sequencing. collateral that will be printed and then made available for distribution, including but not limited to signage for depots and commercial and multifamily recycling enclosures as well as decals for roll carts; and 44 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) electronic files that will ORS be made directly available 459A.875( to the public, including a 2)(a)(J)(i)- website describing the (ii) and locations and operating OAR 340- hours of collection points 090- for PRO recycling 0650(1)(c) acceptance list items, and how such items should be prepared for drop-off. A description of the ORS A Description of the Yes As referenced above, the plan described a vision for a statewide promotional 459A.875( Statewide Promotional two-phase statewide campaign, with specific target campaigns to supplement the 2)(a)(J)(iii Campaign, pg 90-92 audiences, messaging, and mediums of education and outreach ) communication for each. through the customizable The approach as described is sufficient to meet the materials. This could include requirement. but is not limited to messaging distributed through print publications, radio, television, the Internet, social media, and online streaming services; A schedule for the ORS Schedule Including Conditionally The plan included a schedule for developing the development of educational 459A.875( Proposed Timing of Start- educational program from April 2024 onward, with collateral and implementation 2)(a)(J)(ii) Up Approach, pg 94-97 surveys and analysis, concept preparation, CBO of statewide promotional engagement and more in the initial months. campaigns that ensures a successful program launch Later in 2024 and early 2025, CAA will work with the and leaves adequate time for Recycling Council, conduct test campaigns, engage mandatory consultation on with local governments, and roll out customizable the customizable collateral materials in four batches, with the first batch made with local governments and available to local governments on February 1. their designated service providers, review of the Approval is conditional upon adding a graphic that collateral by the Recycling indicates the components of each batch so that the Council, and review and scheduling/sequencing of materials is conveyed more approval of the collateral by clearly. DEQ. 45 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) A description of how the ORS A Culturally-Responsive Conditionally In the interest of cultural responsiveness, CAA ORSAC recommends prospective PRO will ensure 459A.875( Approach, pg 92-93 proposed to produce ADA-compliant materials that adding detail regarding that educational materials and 2)(a)(J)(i) uphold principles of universal design, collaborate with collaboration with campaigns are culturally and ORS Community-Based Organizations, and to translate and CBOs. responsive to diverse 459A.893( transcreate materials into eight languages. audiences across this state, 3) including people who speak Approval is conditional upon: languages other than English • Inclusion of three additional languages (an and people with disabilities; Indic language, an Afro-Asiatic language, are printed or produced in and Tagalog), languages other than English; • addition of detail regarding collaborations and are accessed easily and at with CBOs, no cost to local governments • clarification as to how the approach will and users of the recycling adapt in response to changing demographics, system. This description and could include practices • clarification regarding the approach to employed to meet these language on decals. requirements, such as*: engagement with local n/a n/a CAA indicated plans to work with CBOs to develop community-based and distribute materials but does not provide details organizations and relevant on who it will work with. DEQ welcomes this members of the public to information. develop and distribute educational materials and campaigns, use of images to convey CAA proposed universal design concepts, including information rather than using imagery, icons and other visuals rather than text, large blocks of text to more quickly and easily communicate information and demonstrate processes. use of imagery and models The intent to be responsive to changing demographics that represent a variety of in educational materials was noted, but plans for how cultures and Oregon’s to do so are not elaborated upon. diverse communities, Add detail. avoidance of small print Universal design concepts, including contrast and text size and reverse type (light for easier reading, were proposed. text on dark background), testing of imagery to Universal design concepts, including accounting for ensure designs are color- color blindness and ensuring legibility when selecting blind friendly, 46 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) color palettes, fonts, text size, and imagery, were proposed. exploration of designs that The plan addressed in-mold labeling and a style guide allow for text in both for terms but does not address the question of Spanish and English in the language with respect to cart labels. DEQ program brochure/mailer, recommends adding detail. printed decals and signage, and in-mold label for roll carts. translation of the materials ORS CAA proposed to translate and transcreate materials ORSAC recommends 459A.893( into Spanish, Simplified Chinese, Traditional Chinese, making additional 3)(b) Korean, Arabic, Russian, Vietnamese and Ukrainian. languages available upon request. Per census data, translate material into the following languages: 1. Spanish 2. Vietnamese 3. Simplified Chinese (incl. Mandarin, Cantonese) 4. Russian 5. Ukrainian 6. Korean 7. Nepali, Marathi, or other Indic languages 8. Tagalog (incl. Filipino) 9. Amharic, Somali, or other Afro-Asiatic languages 10. Arabic These are the top 10 languages spoken by 1,000 or more people over the age of five in Oregon for whom English is not their primary language. Consider providing residents, local governments, and service providers an option to request materials in a language besides these ones (i.e., translation upon request). Plans for an online portal or ORS n/a CAA proposed to create an online portal that local other means to provide local 459A.875( governments, their service providers and potentially governments and their 2)(a)(J)(ii) commercial businesses can access to find, customize, 47 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) designated service providers print and mail educational collateral at no cost to (and any other entities, if them. planned) easy access to Specific collateral will include: educational materials at no • Photos/illustrations of accepted items and cost; photos/icons of key contaminants • Sample text for informative, motivational, and instructional messaging • Handouts and/or mailers, including postcards, brochures, full-page flyers, door hangers, and magnets • Social media toolkits and digital media materials • Signage for depots, commercial and multifamily recycling enclosures • Decals for roll carts The prospective PRO could n/a Relevant Experience, pg n/a The plan outlined the relevant experience of CAA and describe the relevant 97-98 its main educational partner, The Recycling experience of team members Partnership, on page 97 of the plan. that will be developing the USCL educational resources and promotional campaigns or, if contracting with a communications consultant, describe the type of experience that will be sought in the solicitation process. 15. Product Speciation for the ORS Product Speciation for Conditionally The 62-material speciation effectively splits APR recommended Fee Structure 459A.875( the Fee Structure, pg 99- recyclables and non-recyclables from one another and consistent 2)(a)(E) 100 provides adequate granularity to avoid cross categorization of lids and ORS subsidization among materials. among PP and PET, as 459A.875( Approval is conditional upon the following: well as the addition of 2)(h) • Separate PET lids from other PET to categorize transparent blue bottles thermoformed lids consistently for PP and for PET. to the clear PET • Add transparent light blue and green to category. clear/natural PET bottle in anticipation of its addition to the USCL. • Make the following edits to align material categories among California and Oregon, simplifying producer compliance: 48 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) o Remove the category “PET (#1) Thermoformed Tubs,” combining thermoformed and non- thermoformed tubs into a single category, “PET (#1) Tubs” o Remove the language “including containers” from the “Other Rigid Items” categories specific to PET (#1) and HDPE (#2). o Delete the following categories: 1. “PP (#5) Thermoformed lids,” and 2.” PP (#5) Thermoformed Tubs, Nursery (plant) pots and trays.” o Replace the word “Thermoformed” with the words “Other Rigid” in the category “Thermoformed Other Rigid Containers, Cups, Plates, Trays (non-nursery (plant))” 16. Description of how the ORS • Financing (besides No prospective PRO will establish, 459A.875( Product Speciation calculate and charge 2)(a)(E) subsection), pg 100- membership fees to member 114 producers, including • Appendix E, Itemized Budgets by Program Year, pg E22-E26 • Appendix G, Detailed Fee-Setting Methodology, pg G1- G28 the schedule of membership ORS Preliminary Base Fee No A simplified version of a fee schedule with only eight AHAM seeks an fees (base rates), 459A.875( Schedule Ranges, pg 103- material categories was provided as a preliminary updated fee schedule accompanied by rationales 2)(h) 104 schedule. It can be approved (if it meets all relevant with fee amounts for all for: criteria) when updated in a subsequent plan version to 62 reporting categories. reflect the full list of reporting categories and the amounts that will be charged for each. How the schedule ORS • Meeting the Statutory Conditionally The plan outlined an approach, the “discretionary ensures that higher fees 459A.884( Requirement, pg 104- state-adjustment factor,” to ensure that recyclables are are charged for non- 3)(a) 106 charged less than non-recyclables. The approach recyclables than for appears sufficient to deliver the statutory requirement recyclables on a of recyclables being charged, on average, less than non-recyclables. 49 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) weighted-ton average Approval is conditional upon updating the subsection basis; and in a subsequent version of the plan to reflect application of the method to an updated fee schedule. How the schedule ORS • Appendix G, Detailed No DEQ’s recommendations, which pertain particularly ensures, to the extent 459A.884( Fee-Setting to the appendix claimed confidential by CAA, are possible, that materials 3)(b) Methodology, pg G1- located in confidential Appendix B of this document. do not cross-subsidize G28 one another. • Development of the the algorithms by which ORS Base Fee Algorithm, pg No fees will be calculated 459A.875( 100-103 2)(a)(E) any producer fee incentives n/a Producer Fee Incentives n/a CAA characterized lower fees on average for non- other than graduated fee Other than Graduated Fee recyclables as a fee incentive besides graduated fee adjustments that will be Adjustments, pg 104 adjustments. offered; Graduated fee algorithm and ORS Graduated Fee Algorithm No As the requirement to offer fee adjustments to methods, including 459A.875( and Methods, pg 107-112 member producers applies from the date of July 1, 2)(a)(E)- 2025, this requirement is not met (because CAA (F) and describes a vision of initiating fee adjustments in 2027 ORS or 2028). 459A.884( Update this section with a proposal that would, at a 4) minimum, operationalize as early as is feasible the the algorithm for the ORS n/a two bonuses proposed as mandatory offerings from graduated fee approach, 459A.884( the PRO to member producers in the current indicating the criteria 4) and rulemaking (see proposed rule 340-090-0910(3)). and magnitude of ORS modulation; 459A.875( 2)(a)(E) Inclusion of both ORS n/a penalties and rewards in 459A.884( the approach to 4) graduated fees accompanying ORS n/a descriptive text 459A.884( explaining how the 4) & ORS algorithm will deliver 459A.875( continual reductions in 2)(a)(F) the environmental and 50 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) human health impacts of covered products a description of the ORS Methods by which the Consideration of post-consumer recycled content and factors taken into 459A.875( PRO will Accept and recycling rate was demonstrated, but not of the other consideration in 2)(a)(F) Consider Requests for three required factors. development of the and ORS Ecomodulation Credits, Add subsections specific to these factors in a approach, and how their 459A.884( pg 110-112 subsequent iteration of the plan. CAA could also incorporation contributes 4)(a)-(e) include consideration of how these factors could be to continual accounted for through implementation of the two incentivization and bonuses proposed in rule (340-090-0910(3)). disincentivizing of producer choices that actually correlate to meaningful environmental benefit. The following five factors must have been considered according to statute: The post-consumer Consideration of Post- Yes The factor was taken into consideration (its use as an content of the Consumer Recycled attribute for ecomodulation is contemplated). material, if the use of Content for post-consumer Ecomodulation, pg 112 content in the covered product is not prohibited by federal law The product-to- n/a No This factor was not taken into consideration. package ratio The producer’s Conceptual Approach to No CAA expressed aspiration to ecomodulate within choice of material; Determining Graduated material categories, but using material choice as an Fee Structure, pg 110-111 attribute for ecomodulating is not discussed. Life cycle n/a No This factor was not taken into consideration. environmental impacts, as demonstrated by an evaluation performed in accordance with ORS 459A.944; and 51 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) The recycling rate of Consideration of Yes The factor was taken into consideration (its use as an the material relative Recycling Rate as a attribute for ecomodulation is contemplated). to the recycling rate Factor for Ecomodulation, of other covered pg 111-112 products. a description of how the ORS n/a No This was not covered, as no concrete ecomodulation PRO will maintain 459A.875( plan is presented. financial solvency 2)(a)(E) (specifically, how loss of revenue due to ecomodulation rewards will be paid for). Alternative membership fee ORS Alternative Membership No CAA did not to propose an alternative membership structure proposal (if 459A.875( Fee Structure (if fee structure. applicable): Per ORS 2)(a)(E) Applicable), pg 113 459A.884(5), the PRO could and ORS propose an alternative fee 459A.884( structure that does not adhere 5) to the requirements of ORS 459A.884(2)-(4) but still delivers cost-proportional product differentiation and incentivizes less impactful producer behavior. A proposal of an alternative membership fee structure could explain How it will ensure that ORS products don’t cross- 459A.884( subsidize each other. 5) How it will incentivize ORS less impactful producer 459A.884( behavior. 5) How it will not n/a n/a incentivize non- recyclable materials, which DEQ views as an undesirable outcome (although an alternative 52 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) membership fee structure would not be strictly held to charging more on average for non- recyclables than for recyclables, i.e., the requirement imposed by ORS 459A.884(3)). Inclusion in the fees approach ORS Flat Fees, pg 103 Conditionally A flat fee approach was outlined but it does not of uniform membership fees 459A.884( account for cases in which producers have revenue of for members that had a gross 6) less than $10 million but more than 5 tons of supply. revenue of less than $10 Amend the Tiered Flat Fee Structure to account for million for the organization’s such cases. most recent fiscal year, or A fee option that is not tied to reporting of a specific sold in or into Oregon less volume would likely be in line with the intent of the than five metric tons of statute. This would allow producers in this class to covered products for use in avoid unnecessarily calculating their volumes. this state in the most recent Update the fee rates with more accurate data. calendar year. Adequacy of financing: this ORS Adequacy of Financing, No See comments below. subsection could contain: 459A.875( pg 114 demonstration that the 2)(i) Conditionally The program plan demonstrated how the fee schedule membership fees is envisioned to cover all costs, but CAA will update collected will provide its system cost estimates and fee amounts. adequate revenue to fund all costs associated with the producer responsibility program. A fee schedule that does not appear to generate sufficient revenue, meaning that program delivery would depend upon funding from other sources, could be cause for plan rejection. Included in this subsection could be: 53 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) a description of the ORS Program Reserves and No The plan identified a reserve target amount but does prospective PRO’s 459A.875( Contingencies, pg 114 not describe contingencies that the reserves are approach to reserve 2)(m intended to address. funds or other Update this in a subsequent draft. In addition, the contingencies for proposed reserve amount is equal to “six months of responding to variable operating expenses.” Describe whether there financial hardship. should also be reserve funds sufficient to pay for fixed For example, a operating expenses. prospective PRO could set a minimum and a maximum reserve budget, defined as a proportion of the annual operating budget. Itemized system costs for n/a Appendix E, Itemized n/a Provided as ranges. 2025, 2026, and 2027 (for Budgets by Program later years, may be appropriate Year, pg E22-E26 to collapse the itemization or provide ranges), including: Total amount to be spent OAR 340- No Provided as a range. on recycling system 090- expansion. 0790(2)(b ) Amounts to be spent on OAR 340- No Not provided. recycling system expansion 090- per individual local 0790(1)(e) government. Itemized system costs incurred n/a Lumped with 2025. before the start date. Administration and operations n/a Provided as a range. costs of the PRO (aggregated). Forecasted reserve level ORS Yes Provided as a range. amount. 459A.875( 2)(m) Estimated revenues, including: n/a n/a Start-up funding; n/a n/a Not provided, assumed that it will be recouped by member fees in 2025. 54 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Member fees; n/a n/a Provided for eight material categories as a range. Value of print and online n/a n/a Not provided but not required. advertising expected from Clarify whether there is cushion built in to allow for newspaper and magazine newspaper and magazine publishers to choose the publishers in lieu of advertising option? membership fees; and Other revenue n/a n/a None cited. Cost of independent financial n/a n/a Not broken out as a separate budget category but audits presumed included in RPO management and admin budget(?) 17. Plans to advance equity in OAR 340- Equity, pg 115-117 No Ten subcomponents throughout the plan marked by recycling 090- asterisks count toward the Equity component, in 0640(1)(a) addition to the components under which they are (C) nested. Four of these are addressing statutory or rule OAR 340- requirements that must be met before the Equity 090- section can be approved. 0640(2)(h As equity is a priority for the State of Oregon, DEQ ) encourages CAA to go beyond the four requirements OAR 340- and address the guidance elements and relevant 090- ORSAC feedback as well, if feasible. 0640(6)(c) (B) ORS 459A.893( 3) 18. Management and Management and No See recommendations specific to particular Compliance Compliance, pg 118-131 subcomponents below. Description of the program’s n/a Overall Day-to-Day n/a Provided on pg 118. overall day-to-day Management, pg 118 management, including management of contracts, record keeping, reporting, and compliance oversight of service providers. Statement or commitment that n/a Provided on pg 118. the program will be managed to ensure program compliance with all relevant and applicable 55 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) state and federal laws and regulations. Names and contact n/a Provided on pg 118. information for key personnel responsible for running various aspects of the program could be provided, including the authorized representative. Description of how the PRO ORS Communications, pg 119- Yes CAA described a thorough approach at pg 119-121 will communicate and 459A.875( 121 for communicating with key interested parties. coordinate with the 2)(d), department, the Oregon Recycling System Advisory Council, local governments, local governments’ service providers, processors and any other producer responsibility organizations. A description of the n/a Other PROs and Multi- n/a CAA included a short section on this at pg 121. In the prospective PRO’s approach to PRO Coordination, pg absence of multiple prospective PROs, no further the long-term coordination 121 information is desired at this time. process, including plans for ensuring that a coordination plan includes all required components under OAR 340- 090-0680(2)(b). A description of the n/a n/a prospective PRO’s vision for how long-term coordination will ensure that PROs’ collective obligations under provisions ORS 459A.860 to 459A.975 are met, including plans for coordination on specific elements listed under OAR 340-090-0680(2)(c). Description of the process for ORS Managing Compliance, Conditionally On pg 125 it is stated that, after a time frame to be promptly notifying the 459A.875( pg 124-126 specified in the Membership Rules passes, CAA will department, the Oregon 2)(l) notify DEQ of non-compliance by a former or current 56 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) Recycling System Advisory produce member that pertains to payment of fees or Council and producers of reporting of data. potential noncompliance with Specify the time frame and call out relevant the requirements of ORS membership rules. 459A.860 to 459A.975 by a producer or producer DEQ appreciates that CAA will, as noted on pg 126, responsibility organization. inform DEQ of producers that may be obligated and have not joined CAA. EQ also appreciates CAA’s description regarding non-compliance with respect to the large producer disclosure requirement as noted on pg 126. More detail is needed here to assess whether the requirement is met – what are the specific compliance reporting processes and protocols that CAA is proposing? This process could This particular example of a local government encompass plans to issue refusing to implement system expansion was not notifications regarding addressed in the plan. potential noncompliance by other actors that the PRO could be aware of— for example, a local government’s refusal to accept funding and implement system expansion needed to comply with the Opportunity to Recycle Act, per OAR 340-090- 0630(4)(f). Description of a process, ORS Dispute Resolution (Local No CAA acknowledged on pg 127 that the current ORSAC seeks more including the process 459A.875( Governments and version does not address this requirement adequately. details on procedure timeline, for how the 2)(e) CRPFs), pg 127 Consider presenting the information in two and process for the producer responsibility subsections: dispute resolution organization will resolve any OAR 340- 1. the ground rules for dispute resolution that have mechanism. disputes involving 090- been worked out through the ORSOP process thus far compensation of local 0640(1)(b (for example, some principles for what are and are not ORSAC seeks more governments and local )(D) eligible costs, and details on the role of the governments’ service working group. 57 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) providers under ORS 2. Procedural and process details for the mechanism, 459A.890; disputes involving including the timeline for how a dispute resolution commingled recycling process would occur. processing facilities under ORS 459A.920 and 459A.923; and disputes involving contracting with existing depots under ORS 459A.896(a). Policies, procedures, and n/a General Policies, n/a Page 128, Paragraph 2 – referenced state-specific practices for ensuring: Procedures, and Practices, policies, procedures and practices. pg 128-129 Provide more details about what these are in Oregon. Safety and security of staff, n/a n/a A commitment to implement standards pertaining to contractors, and members workplace safety appeared on pg 128. of the public. Compliance by staff and n/a n/a A commitment to comply with all applicable laws contractors with all relevant pertaining to workplace safety appeared on pg 128. As state and federal laws and pertains to collection for the PRO list materials, CAA rules; may wish to expand this commitment toward compliance with land use provisions, environmental laws and labor laws. Successful and timely n/a n/a On pg 129 CAA indicated consideration of how to delivery of project ensure successful and timely delivery of outcomes by outcomes by contractors contract. Protection of confidential n/a n/a On pg 128 CAA pledged to adopt an information information; security plan for protecting against problems with confidential info. Retention of information n/a n/a Per pg 129 CAA will designate a records custodian required for annual reports charged with ensuring records are kept for at least five submitted under ORS years (pursuant to ORS 459A.962) and would be 459A.878 available to DEQ for inspection upon request. Further clarify that the records will be maintained within the state of Oregon. Maintenance of records n/a • Compliance Process, pg n/a See pg 125 -- with respect to producer compliance, necessary to demonstrate 125 CAA will require its producer members to retain compliance. • Retention of records to substantiate and verify the accuracy of the Information, pg 129 info submitted in their reports for a to-be-determined 58 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) period of time, and records will be subject to inspection by CAA. Specify the length of the retention period. Any internal requirements n/a n/a n/a In the Equity section on pg 117, CAA indicated that it City of Portland around engagement of will develop an approach to provide opportunities to suggested the “Certified Firms” when COBID-certified businesses. development of a contracting work out to third DEQ welcomes more details on this approach. COBID engagement parties (“Certified Firm” Consider developing an engagement plan to notify plan and integration means a small business COBID companies of RMA-related opportunities, and with the goals/metrics certified under ORS 200.055 incorporating goals/metrics for the percentage of work of the program overall. by the Oregon Certification or service to be provided by COBID companies into Office for Business Inclusion the program goals. and Diversity (COBID) as a minority-owned business, Additionally, consider describing how CAA will woman-owned business, support smaller producers to comply, and small business that service-disabled service providers to meaningfully participate in veterans own, or emerging Oregon’s recycling system. small business).* Consider describing what jobs will be created and retained in Oregon through the PRO’s long-term role. Description of the closure plan ORS Closure Plan, pg 130-131 No The reserves for the closure plan amount to six to settle the affairs of the 459A.875( months of variable costs, and not variable and fixed PRO if it needs to close, 2)(m) costs. Provide more analysis as to why this amount is ensuring that producers will enough to ensure obligations are met during continue to meet their dissolution. obligations during the The budget in Appendix E included reserve amounts. dissolution process and Provide an example or two of closing at a particular including a protocol for point in time and how the reserves would be adequate notifying the department, the to cover costs during the closing period. Oregon Recycling System Advisory Council and local governments of the dissolution. This section could include: A description of how the ORS No No reference to an insurance policy or other such closure plan will ensure 459A.875( financial mechanism was provided to back up the that there are sufficient 2)(n) stated intent to be able to fund obligations during reserve funds to satisfy all closure. obligations until such DEQ has financial assurance mechanisms for landfills time as producer members in rule at OAR 340-094-0145(6), which CAA could have joined a different 59 Required or Guidance Plan Statute or Plan Section(s) Section(s) DEQ rationale/recommendation Parties that submitted Component Rule approved? similar or related Citation (yes, no, feedback+ conditionally) producer responsibility review to understand what DEQ would consider to be organization. To enable a reliable financial assurance mechanism. this outcome, the plan may include elements such as proof of a closure insurance policy, retention of auxiliary staff through a closure process, and the timing and approach for notification of the public. Other plan subcomponents: Inclusion of a certification n/a Certification and n/a The certification and attestation were included in the and attestation section Attestation, pg 132-133 plan. including contact information, EIN, proof of nonprofit status, and the following signed, certifying statement: “I/We hereby declare under penalty of false swearing (Oregon Revised Statute 162.075 and ORS 162.085) that the above information and all of the statements, documents and attachments submitted with this plan are true and correct.” Inclusion of a definitions n/a Appendix A, Definitions, n/a A definitions section was included in the plan. section. pg A3-A9 Inclusion of an n/a Appendix M, Preliminary n/a This could be displayed alternatively over several implementation timeline Program Implementation pages, as an 11.5 x 17 or with other modifications so Timelines, pg M64 that it’s easily readable. + DEQ evaluated comments received from 19 entities through the ORSAC review and public comment process, and notes in the column “Parties That Submitted Similar or Relevant Feedback” the subset of 70 suggestions from these groups that overlap with DEQ recommendations. Key of organizations with overlapping recommendations: AHAM – Association of Home Appliance Manufacturers APR – Association of Plastic Recyclers 60 CL – Closed Loop Partners FPI – Foodservice Packaging Institute GPI – Glass Packaging Institute Metro – Metro (Metropolitan Planning Organization for the Portland region) ORRA – Oregon Refuse and Recycling Association ORSAC – Oregon Recycling System Advisory Council OWA-OWC-WI – Oregon Winegrowers Association, Oregon Wine Council, and Wine Institute PI – Potential Industries Upstream – Upstream Policy Institute 61, and SPC members can attend the CAA’s session on Oregon EPR at SPC Advance this Fall.

July Packaging Policy Roundup

1. White House Plastics Executive Order

What will this order do?

The order aims to phase out federal procurement of single-use plastics from food service operations, events, and packaging by 2027, and from all federal operations by 2035.

What’s the status of this order?

The executive order, titled “Mobilizing Federal Action on Plastic Pollution,” was issued on July 19, 2024 and outlines actions and funding toward reaching the order’s goals. The White House issued the order as part of a broader effort to address plastic pollution and reinforce U.S. leadership on the issue before the UN global plastics treaty meeting this Fall.

What would this policy look like in action?

The federal government is the largest single purchaser of goods and services globally. If the government achieves goals of the order, it will no longer procure or purchase single-use plastics throughout federal operations by 2035.

The order also outlines key areas that the government will focus on as part of its initiative. The focus areas include:

  • Assessing and reducing pollution from plastic production
  • Innovating materials and product design
  • Decreasing plastic waste generation
  • Improving environmentally sound waste management
  • Informing and conducting capture and removal of plastic pollution
Where can I learn more about this order?

For more details, you can view the full report and order, and you can also check out this Trellis article, “White House order flexes muscle against plastic pollution.”

2. New Jersey Assembly Bill 2775

What will this law do?

This bill, commonly known as a “Truth in Labeling Law,” would prevent the sale of certain products that are labeled as “recyclable,” unless certain recyclability conditions (as determined by the NJDEP) are met.

What’s the status of this legislation?

The bill was introduced earlier this year and hasn’t moved since; however, New Jersey’s Legislative session is on a 2024-2025 biennium, meaning that the Legislature is still active until January 2026.

What would this policy look like in action? 

Similar to California’s SB 343, this New Jersey bill aims to reduce deceptive claims related to recycling. The bill explicitly states that:

“A product or packaging that displays a chasing arrows symbol, a chasing arrows symbol surrounding a resin identification code, or any other symbol or statement indicating the product or packaging is recyclable, or otherwise directing the consumer to recycle the product or packaging, shall be considered a deceptive or misleading claim … unless the product or packaging is considered recyclable in the State.” 

Where can I learn more about this law?

If you’re interested in learning more about the bill, you can read the full text here. If you want to learn more about how SPC and How2Recycle are collaborating to adapt on-pack labels for this and similar legislation, you can read more about our work here.

3. Comment Period: Maine’s Extended Producer Responsibility (EPR) Program for Packaging

What does the comment period cover?

The Maine Department of Environmental Protection (DEP) is defining what materials will be exempt from their packaging stewardship program. The DEP has published its exemption requests for public review and are accepting comments on the requests through August 1, 2024.

What are material exemptions? 

All EPR programs have exemptions (materials that aren’t subject to the EPR legislation) for different types of materials and packaging products. Maine’s law includes exemptions for small producers, as well as packaging for items like architectural paint and bottle bill packaging. A few producers have petitioned for exemptions for products like tobacco products and infant formula.

How can I weigh in?

Written comments on the Packaging Material Exemption Requests are being accepted by the Department and should be sent to: MainePackagingEPR@maine.gov

Where can I learn more about this regulation?

You can read more about the exemption requests on Maine’s EPR website under Exemption Requests. You can also reference the SPC’s covered product E P R F O R PAC K AG I N G I N T H E U N I T E D S TAT E S : C OV E R E D P R O D U C T S A N D E X E M P T I O N S stainable packaging coalition EPR for Packaging in the United States: Covered Products and Exemptions MINI RESOURCE POLICY E P R F O R PAC K AG I N G I N T H E U N I T E D S TAT E S : C OV E R E D P R O D U C T S A N D E X E M P T I O N S E P R F O R PAC K AG I N G I N T H E U N I T E D S TAT E S : C OV E R E D P R O D U C T S A N D E X E M P T I O N S GreenBlue is an environmental nonprofit dedicated to the sustainable use of materials in society. We bring together a diversity of stakeholders to encourage innovation and best practices to promote the creation of a more Introduction sustainable materials economy. Extended Producer Responsibility for packaging and paper products is The Sustainable Packaging Coalition (SPC) is a a policy approach that assigns producers (brands, manufacturers, etc.) membership-based collaborative that believes in responsibility for the end-of-life of their products, whether that be through recycling, composting, or landfilling. The responsibility part the power of industry to make packaging more can be financial, operational, or a combination of both. Essentially, producers are required to provide funding and/or services that assist in sustainable. We are the leading voice on managing covered products after the use phase of a product’s life. sustainable packaging and we are passionate At their foundational level, all Extended Producer Responsibility (EPR) about the creation of packaging that is good for programs have one thing in common: covered products. These products are defined within the EPR proposals and specify the types of people + the environment. Our mission is to bring products that are “covered” or obligated under the program. For packaging sustainability stakeholders together to example, in various state laws within the United States, covered products include paint, electronics, tires, mattresses, and batteries. catalyze actionable improvements to packaging Within the last few years, new EPR for packaging and paper products systems and lend an authoritative voice on issues laws have passed in California, Colorado, Maine, and Oregon. For these kinds of covered products, the “product” is the packaging, rather than related to packaging sustainability. The the object or item (i.e. the plastic bag around the mattress rather than Sustainable Packaging Coalition is a trademark the mattress itself). Each law defines “covered product” a little differently. The definitions typically include format and material type, as project of GreenBlue Org. well as any exemptions. The two tables below go into detail about each state’s covered products by category, as well as explaining the covered product exemptions. Here you can see the similarities and differences between the states, as well as gain a better understanding of where your product fits into each state’s law. Keep in mind that rulemaking, or finalization of the laws by state governments, is still in process for these four states, so these categories and exemptions are subject to change. stainable packaging 2 3 E P R F O R PAC K AG I N G I N T H E U N I T E D S TAT E S : C OV E R E D P R O D U C T S A N D E X E M P T I O N S Covered Products CALIFORNIA COLORADO MAINE OREGON Single-use packaging that is routinely recycled, Packaging material means any material, regardless disposed of, or discarded after its contents have of recyclability, that is intended for single or short- been used or unpackaged, and typically not refilled term use and is used for the containment, or otherwise reused by the producer. protection, handling, or delivery of products to the SINGLE/SHORT- consumer at the point of sale, including through an TERM USE internet transaction. Packaging material includes paper, plastic, glass, metal, cartons, flexible foam, rigid packaging, or other materials or combination of these materials. Plastic single-use food service ware, including, but Packaging material includes products supplied to Food serviceware means paper or plastic plates, not limited to, plastic-coated paper or plastic- or purchased by consumers for the express wraps, cups, bowls, pizza boxes, cutlery, straws, lids, coated paperboard, paper or paperboard with purpose of facilitating food or beverage bags, aluminum foil or clamshells or similar plastic intentionally added during the consumption and that are both: containers that are generally intended for single manufacturing process, and multilayer flexible 1. Ordinarily disposed of after a single or short-term use and are sold to a retailer or a dine-in food FOOD material. “Single-use food service ware” includes use establishment or a take-out food establishment, SERVICEWARE both of the following: regardless of whether the item is used to pre 2. Not designed for reuse or refill 1. Trays, plates, bowls, clamshells, lids, cups, utensils, packaged food for resale, is filled on site for food stirrers, hinged or lidded containers, and straws. ordered by a customer or is resold as is. 2. Wraps or wrappers and bags sold to food service establishments Paper products means paper and other cellulosic Printing and writing paper includes, but is not fibers, whether or not they are used as a medium limited to, newspaper, magazines, flyers, brochures, for text or images, including: flyers, brochures, booklets, catalogs, telephone directories and paper booklets, catalogs, telephone directories, used for copying, writing or other general use. newspapers, magazines, and paper used for PAPER writing or any other purpose. PRODUCTS Packaging material means a discrete type of Packaging means: material, or a category of material that includes 1. Materials used for the containment or protection multiple discrete types of material with similar of products, including but not limited to paper, management requirements and similar commodity plastic, glass or metal or a mixture thereof values, used for the containment, protection, PACKAGING delivery, presentation or distribution of a product, 2. Single-use bags, including but not limited to MATERIAL including a product sold over the Internet, at the shopping bags and time that the product leaves a point of sale with or 3. Nondurable materials used in storage, shipping is received by the consumer of the product. or moving, including but not limited to packing materials, moving boxes, file boxes and folders 5 stainable packaging E P R F O R PAC K AG I N G I N T H E U N I T E D S TAT E S : C OV E R E D P R O D U C T S A N D E X E M P T I O N S Covered Product Exemptions CALIFORNIA COLORADO MAINE OREGON Medical products and products defined as devices or Packaging material used to contain a product that is Packaging and paper products sold or supplied in MEDICAL prescription drugs, as specified in the Federal Food, Drug, regulated as a drug, medical device, or dietary supplement connection with: (i) Prescription drugs as defined in ORS and Cosmetic Act by the Federal Food and Drug Administration under the 689.005; (ii) Nonprescription drugs as defined in ORS PRODUCTS “Federal Food, Drug, and Cosmetic Act” 689.005; (iii) Drugs marketed under a brand name as defined in ORS 689.515 INFANT FORMULA Infant formula, as defined in Section 321(z) of Title 21 of the Packaging material used to contain a product that is Infant formula as defined in 21 U.S.C. 321 United States Code regulated as infant formula, as defined in 21 U.S.C sec. 321 Drugs that are used for animal medicines, including, but Packaging material used to contain a product that is Packaging and paper products sold or supplied in not limited to, parasiticide products for animals. regulated as animal biologics, including vaccines, connection with drugs that are used for animal medicines, Products intended for animals that are regulated as animal bacterins, antisera, diagnostic kits, and other products of including but not limited to parasiticide drugs for animals. drugs, biologics, parasiticides, medical devices, or biological origin under the Federal “Virus-Serum-Toxin ANIMAL DRUGS diagnostics used to treat, or administered to, animals Act”, 21 U.S.C. sec. 151 et seq., as amended; packaging under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. material used to contain a product that is regulated under Sec. 301 et seq.), the Federal Virus-Serum-Toxin Act (21 the Federal Insecticide, Fungicide, and Rodenticide Act U.S.C. Sec. 151 et seq.), or the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.). MEDICAL FOOD Medical food, as defined in section 360ee(b)(3) of title 21 of As a medical food, as defined in 21 U.S.C. sec. 360ee Medical food as defined in 21 U.S.C. 360ee the United States code Fortified oral nutritional supplements used for persons As fortified nutritional supplements used for individuals Fortified oral nutritional supplements used for individuals who require supplemental or sole source nutrition to meet who require supplemental or sole source nutrition to meet who require supplemental or sole source nutrition to meet nutritional needs due to special dietary needs directly nutritional needs due to special dietary needs directly nutritional needs due to special dietary needs directly NUTRITIONAL related to cancer, chronic kidney disease, diabetes, related to cancer, chronic kidney disease, diabetes, related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, as those terms are defined malnutrition, or failure to thrive, as those terms are defined malnutrition, or failure to thrive, as those terms are defined SUPPLEMENTS as by the international classification of diseases, tenth by the world health organization’s “international as by the international classification of diseases, tenth revision, or other medical conditions as determined by the classification of diseases” (tenth revision), as amended or revision, or other medical conditions as determined by the department revised, or any other medical conditions as determined by commission the commission by rule Packaging used to contain products regulated by the Packaging material used to contain a product that is Required under 40 c.f.r. 156.140, or other federal regulation INSECTICIDE, Federal Insecticide, Fungicide, Rodenticide Act regulated under the Federal Insecticide, Fungicide, pertaining to toxic or hazardous materials, to state on the FUNGICIDE, Rodenticide Act label or container that the packaging should not be RODENTICIDE ACT recycled or should be disposed of in a manner other than recycling Plastic packaging containers that are used to contain and Packaging material used to contain a product that is Packaging for products: (i) that are required under 40 c.f.r. ship products that are classified for transportation as required under state law to be sold in packaging material 156.140, or other federal regulation pertaining to toxic or dangerous goods or hazardous materials under part 178 that meets the standards set forth in the “poison hazardous materials, to state on the label or container that (commencing with section 178.0) of subchapter c of prevention packaging act of 1970”, 15 U.S.C. sec. 1471 et the packaging should not be recycled or should be HAZARDOUS chapter i of subtitle b of title 49 of the code of federal seq., as amended. disposed of in a manner other than recycling regulations and packaging used to contain hazardous or flammable products regulated by the 2012 Federal Occupational Safety and Health Administration Hazard Communications Standard (29 c.f.r. 1910.1200). BEVERAGE Beverage containers subject to the California Beverage Beverage containers subject to a returnable container A beverage container, as defined in section 3102, A beverage container, as defined in ors 459a.700 Container Recycling and Litter Reduction Act (division 12.1 deposit, if applicable subsection 2, subject to the requirements of chapter 33 CONTAINERS (commencing with section 14500)). Packaging used for the long-term protection or storage of Packaging materials intended to be used for the long-term Packaging intended to be used for the long-term storage LONG-TERM a product that has a lifespan of not less than five years, as storage or protection of a durable product and that are or protection of a durable product and that can be PACKAGING determined by the department intended to transport, protect, or store the product for at expected to be usable for that purpose for a period of at least five years least 5 years Packaging associated with products covered under the Packaging material used to contain architectural paint A container for architectural paint, as defined in section Packaging related to containers for architectural paint, as architectural paint recovery program established pursuant covered under a paint stewardship program in accordance 2144, subsection 1, paragraph a, as long as a paint defined in ors 459a.822, that has been collected by a to chapter 5 (commencing with section 48700) of part 7. with part 4 of this article 17; stewardship program is in operation, has been approved producer responsibility organization under the program by the department pursuant to section 2144 and the established under ors 459a.820 to 459a.855. stewardship organization operating that program: (a) has ARCHITECTURAL demonstrated to the department’s satisfaction that it recycles at least 90% of the containers of architectural PAINT paint collected under the program; or (b) subject to the approval of the department, if unable to satisfy the requirements of division (a), has demonstrated to the department’s satisfaction that it recycles at least 80% of the containers of architectural paint collected under the program; 7 stainable packaging E P R F O R PAC K AG I N G I N T H E U N I T E D S TAT E S : C OV E R E D P R O D U C T S A N D E X E M P T I O N S Covered Product Exemptions continued... CALIFORNIA COLORADO MAINE OREGON Paper products that, through their use, could become unsafe or Napkins, paper towels or other paper intended to be used for cleaning or the unsanitary to handle absorption of liquids PAPER PRODUCTS Printed paper used to distribute financial statements, billing statements, medical documents, or other vital documents required to be provided in paper form by applicable consumer protections laws or other state or federal laws BOUND BOOKS Bound books Bound books Packaging material used exclusively in industrial or manufacturing Specialty packaging items that are used exclusively in industrial or processes manufacturing processes, including but not limited to: cores and wraps for INDUSTRIAL rolls of packaging sold by a mill to a packaging converter or food processor; PACKAGING and trays, whether designed for a single use or multiple uses, used for the transport of component parts from a parts supplier to a manufacturer that assembles those parts. REFURBISHED Packaging material used to contain a portable electronic device, as defined in section 10-4-1501, that has been repaired and reconditioned to ELECTRONICS be sold as a refurbished product Paper products used for a print publication that primarily includes content NEWS SOURCES derived from primary sources related to news and current events PALLETS AND Rigid pallets used as the structural foundation for transporting goods lifted by a forklift, pallet jack or similar device. PALLET RELATED Pallet wrap or similar packaging used to secure a palletized load if added by a PACKAGING person that is not the producer of the palletized covered products. GAS CANISTER Liquified petroleum gas containers that are designed to be refilled Items sold on a farm or used on a farm, including items used for farm use, as defined in ORS 215.203, or for processing on a farm, provided that an item used on a farm is not subsequently sold at a retail establishment that is not FARMS AND located on a farm PLANTS Items used by a nursery licensed under ORS 571.055 that generates the majority of the nursery’s revenue through the sale of nursery stock, as defined in ORS 571.005, provided that the items are not sold through retail sales WINE AND SPIRITS Wine and spirit containers for which a refund value is established under Oregon law. Covered material for which the producer demonstrates to the Any other material that, based on an analysis by the organization of the department that the covered material meets all of the following operational and financial impacts of the proposed changes and after criteria: consultation with the advisory board, the commission determines by rule (i) the covered material is not collected through a residential recycling to not be a covered material. collection service (ii) the covered material does not undergo separation from other materials at a commingled recycling processing facility STATUTE SET (iii) the covered material is recycled at a responsible end market EXEMPTIONS (iv) the material has demonstrated a recycling rate of 65 percent for three consecutive years prior to January 1, 2027, and on and after that date demonstrates a recycling rate at or over 70 percent annually, as demonstrated to the department every two years. (ii) if only a portion of the covered material sold in or into the state by a producer meets the criteria of clause (i), only the portion of the covered material that meets the criteria of clause (i) is exempt from this chapter and any portion that does not meet the criteria is a covered material for purposes of this chapter Packaging material does not include: 1. Packaging materials used solely in transportation or distribution to nonconsumers NON-CONSUMER 2. Packaging materials used solely in business-to-business transactions PACKAGING where a covered material is not intended to be distributed to the end MATERIALS consumer 3. Packaging materials that are not sold or distributed to covered entities 4. Packaging materials that are used for products sold or distributed outside the state 9 E P R F O R PAC K AG I N G I N T H E U N I T E D S TAT E S : C OV E R E D P R O D U C T S A N D E X E M P T I O N S Conclusion As shown above, there is quite a variety of covered product exemptions and they are very circumstantial to the individual state laws. In the case of EPR for packaging materials and paper products, many of the exemptions fall under categories where the majority of that packaging should not end up in the residential or commercial waste streams, as these materials are already regulated at their end of life or are handled in alternative streams. For example, architectural paint is exempted from all four states as an EPR program already exists for these packages and will be handled through that alternative stream. Another example is products that could become unsanitary after use. Packaging and paper EPR covers all types of paper, but paper towels or napkins are excluded because they’re inherently used for unsanitary purposes, unlike printing or wrapping paper that is generally directed for the recycle bin once used. Covered products and exemptions are the foundation of any EPR program. As such, they are highlighted in the SPC’s Guide to EPR Proposals tool, and further explanation of what products are covered under each state’s bill can be found in the “Covered Products” category. stainable packaging coalition Explore the tool here: https://epr.sustainablepackaging.org/ stainable packaging 10exemption reference sheet for more information on EPR exemptions.

4. California SB 54: CalRecycle Meets Statutory Deadline for Covered Materials List

What is California’s SB 54?

California’s SB 54, or the Plastic Pollution Prevention and Packaging Producer Responsibility Act, is the state’s EPR legislation. The law requires cutting single-use plastics by 25%, recycling 65% of single-use plastics, and ensuring 100% of single-use packaging and plastic food ware are recyclable or compostable.

What’s the latest on California’s SB 54?

The bill text for SB 54 included a deadline to publish the state’s list of covered material categories—materials that are subject to SB 54 regulation —by July 1, 2024. As part of the legislation’s formal rulemaking process, the California Department of Resources Recycling and Recovery has succeeded in publishing a covered materials list on the first of July. This marks an update of the agency’s initial list, which was released in December. CalRecycle made nearly 30 changes between the two iterations.

What materials apply to California’s EPR legislation now?

The covered material category (CMC) list under California’s EPR legislation includes nearly 95 different material types and forms including glasses, plastics, paper and fibers, metals, wood and other organic materials. Starting in 2027, California’s EPR legislation will require producers of these covered materials to fund their collection and recycling.

Where can I learn more about this law?

To read more about California’s EPR covered materials, we recommend checking out this Resource Recycling article or checking out the list on CalRecycle’s website.

5. New Jersey’s S226 Rightsizing Bill

What will this law do?

This bill would prevent retailers from shipping products in cardboard or corrugated boxes that are two times larger (in volume) than the product itself. The bill includes a few exceptions for electronics and any minimum size requirements by the United States Postal Service or other shipping providers.

What’s the status of this legislation?

Introduced in January, the bill passed the State Senate at the end of June in a 21-15 vote. While many state legislatures close sessions during the summer, because New Jersey’s Legislative session is on a 2024-2025 biennium, the Legislature—and the rightsizing bill—are still active until January 2026.

The rightsizing bill is one of many packaging related bills still active in New Jersey, with other legislation covering: EPR, source reduction, bottle deposits, mandated reuse in certain scenarios, and the aforementioned labeling requirements.

What would this policy look like in action? 

New Jersey’s S226 aims to reduce the amount of materials in a package. If passed, no online or other major retailer in the state would be allowed to ship a product to consumers where the container’s volume is more than two times greater than the volume of the product itself.

As the bill stands now, retailers that violate the law would be subject to fines between $250-$500 for each offense.

Where can I learn more about this bill?

To learn more about New Jersey’s rightsizing legislation, you can check out this Packaging Dive article or can read the full bill text here.

SPC’s SMART design principles include “reduction and elimination.” This bill is one example of how those principles could play out in real life through policy and design. You can learn more about our sustainable packaging design principles hereKJALJFLKSTAINABLE LKASDJPACKAGING ADFWEFDCOALITION Definition of Sustainable 5 Principles of Sustainable Packaging Packaging R E S O U R C E PAC KAG I N G D E S I G N T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G GreenBlue is an environmental nonprofit TA B L E O F CO N T E N T S dedicated to the sustainable use of materials in society. We bring together a diversity of A Project of 5 Principles of Sustainable Packaging 4 The Definition of Sustainable stakeholders to encourage innovation and best Packaging 1. Uses SMART Design 6 January 2024 practices to promote the creation of a more 2. Advances the use of recycled materials and/or sustainably-sourced, Version 1.0 sustainable materials economy. renewable feedstocks 8 L E A D AUT H O R 3. Is designed and labeled for reusability, recyclability, or compostability 9 Olga Kachook, Director, SPC 4. Engages with reuse and refill models 10 The Sustainable Packaging Coalition (SPC) is a 5. Invests in the growth of recycling and composting infrastructure, membership-based collaborative that believes collection, and access 11 in the power of industry to make packaging Resources 13 more sustainable. We are the leading voice on Knowledge Library Topics 13 sustainable packaging and we are passionate about the creation of packaging that is good for people + the environment. Our mission is to bring packaging sustainability stakeholders together to catalyze actionable improvements to packaging systems and lend an authoritative voice on issues related to packaging sustainability. The Sustainable Packaging Coalition is a trademark project of GreenBlue Org. 4 5 T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G 5 PR I N C I PL E S O F The following five principles are designed to help the packaging value S U STA I N A B L E PAC KAG I N G chain approach sustainable packaging through a comprehensive, The Sustainable Packaging Coalition considers systems-wide lens, minimizing the negative environmental and sustainable packaging to be an approach to the social impacts of the product-package system while maximizing the design, production, and distribution of packaged performance and purpose of packaging. goods. This approach is guided by comprehensive Sustainable packaging is more than just recyclability - companies principles that consider the impacts of sourcing, should use a holistic approach that follows the EPA’s Waste Hierarchy, manufacturing, and disposing of materials for prioritizing better design through reduction and reuse over better packaging - that is, the entire life cycle of the disposability. package. Packaging refers to materials or containers used Specifically, moving towards sustainable around a product to help identify and differentiate, transport and distribute, store, promote, and use packaging will require designers and the product properly. It is important to note that engineers to incorporate as many of the sustainability for packaging is first and foremost an approach, rather than a descriptor of a specific five principles as possible, and continuously package material or format. There is no such improve and innovate to accomplish more of thing as a perpetually “sustainable package” - the principles. sustainability depends on tradeoffs in the materials, format, and design of a package. Sustainable packaging is packaging that: 1. Uses SMART1 design 2. Advances the use of recycled materials and/or sustainably-sourced, renewable feedstocks 3. Is designed for reusability, recyclability, or compostability and labeled with appropriate end-of-life instructions Companies working on sustainable packaging should also work on ensuring that their product-package system: 4. Engages with reuse and refill models 5. Invests in the growth of recycling and composting infrastructure, collection, and access 1. Sustainable Packaging Coalition, 2023 6 7 T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G The concept of material health - also known as the “safe, then circular” approach to packaging materials - 1. should serve as a guide so that hazardous chemicals are not introduced into recycling and composting streams. Hazardous chemicals should not be used to manufacture a package, since this can have environmental health consequences for workers, communities near production facilities, and consumers. This often requires the packaging value chain to go beyond compliance with chemical safety regulations and perform additional due diligence. Safety must be a priority for each component of the packaging system, including both the primary base material and all additives, adhesives, coatings, and decorative elements. Uses Sustainable design for packaging considers not just environmental impacts but also social implications. The concept of appropriate accessibility refers to packaging that is easy to use and open for all individuals, including those with disabilities, limited mobility, and the aging population, who may experience reduced dexterity, vision, or cognitive abilities. At the same time, certain packaging needs to include seals, child locks, SMART or tamper evidence to limit access to the contents. Strategies to incorporate accessibility into a package may include sensory cues, braille labeling, and easy- to-open mechanisms. Sustainable packaging design should strive to ensure that all individuals can independently and safely access product contents. Sustainable packaging seeks to reduce the amount or number of materials it uses. Over-packaging, or using more packaging than is required to reasonably protect a product, results in the unnecessary use of materials Design and energy. Optimization involves an assessment of the amount of packaging being used to determine if it can be redesigned, or eliminated. Right-sizing, lightweighting, and other design strategies help to ensure efficient distribution and use. For example, using the packaging to prevent damage in transit to the customer can reduce the overall environmental impacts by preventing an item from needing replacement. Finally, sustainable packaging is developed using life-cycle thinking - this means considering all aspects of the life cycle of a package, including material sourcing and extraction, manufacture, distribution, use by a consumer, Sustainable packaging uses SMART design to reduce the negative environmental and social impacts that can and disposal. This approach helps companies to think holistically about the impacts of their packaging and occur across the entire life cycle of a package. SMART stands for: identify areas for improvement. In many cases, the biggest environmental impact from packaging is not during disposal, but rather in the sourcing and manufacturing phases. S Systems approach M Material health A Accessibility SPC Resources on Optimization Food Waste CleanPackage R Reduction and elimination and Food Waste Prevention Guide T Life-cycle thinking Food Waste E-Commerce Life Cycle Packaging & Material Health Knowledge Library Knowledge Library Assessment Sustainability Knowledge Library Knowledge Library Knowledge Library A systems approach to packaging is needed to avoid unintended consequences of design choices. This means considering the environmental footprint of the product itself, with the aim of protecting the product or packaging contents. When a product is damaged or spoiled before it can be used, all of the energy and materials used to produce the product are also wasted. Using a package to prevent the spoilage of perishable products like food or resource-intensive items like electronics ensures that the impacts associated with the product itself are not going to waste, even if there is increased packaging. 8 9 T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G Biobased plastics are wholly or partly derived from For all material types, facilities that produce 2. plants (e.g. corn, wood, sugar cane) or animals (e.g. packaging materials should prioritize low-emissions fish scales and insect exoskeletons). These feedstocks energy from solar, wind, biobased, hydroelectric, or are renewable resources, meaning that they can be geothermal energy production. Companies sourcing regenerated and harvested again with sustainable from manufacturing facilities should verify that local harvesting methods. Biobased materials can be used communities are not harmed by hazardous waste Advances the use of recycled for packaging applications where either recyclability or or emissions from both virgin and recycled material compostability is being pursued. production. materials and/or sustainably- Recycled SPC Resources on Sourcing Sustainably Material Using Recycled Standard Plastics Guide sourced, renewable Bioplastic Fiber Packaging & Verifying the feedstocks Sustainability Responsible Sourcing Knowledge Library Knowledge Library of Fiber Guide Knowledge Library Sustainable packaging aims to minimize the environmental and social impacts from sourcing and manufacturing packaging materials. This involves responsible sourcing practices, which include strategies such as using recycled materials or sustainably-sourced, renewable feedstocks. For most applications, packaging is not sustainable if its production requires depleting or relying on finite resources such as fossil fuels or metals. Instead, using recycled materials can reduce the amount of energy 3. required to produce a package while also reducing the reliance on resource extraction. Using recycled materials also builds important end markets for recyclable packaging, creating market drivers for circularity. For some materials or formats, it is not possible to source recycled materials. In these cases, sustainable Is designed and labeled for packaging can also use renewable feedstocks such as sustainably-sourced wood and non-wood fiber or biobased plastics. Using these materials can help to reduce reliance on non-renewable resources such as fossil fuels. reusability, recyclability, or When sourcing responsibly, companies should understand the landscape where the material is being sourced and any unintended consequences, and work to mitigate potential environmental damage or health impacts, such as the release of air pollutants or hazardous waste. Third-party certifications and auditing programs can compostability help companies protect against environmental and social issues in their supply chain while maintaining or improving the well-being of workers and communities. Sustainable packaging Well-designed sustainable packaging is not destined In order to design for recyclability or compostability, for landfills or incineration: rather, it is designed for companies should refer to industry guidelines (e.g. aims to minimize the recovery through reuse, recycling, or composting in a APR’s Design Guide for plastics, AF&PA for paper, circular economy. The circular economy is an important How2Recycle Guide), applicable reprocessing and environmental and social opportunity for companies to invest in both the repulpability testing standards for paper-based future of the planet and their own supply chains. By packaging (let from Western Michigan University), and impacts from sourcing and designing packaging to be recovered or reused at the third-party certifications from certifying organizations end of its first life, companies may lower procurement (for example, BPI, CMA, or TUV for compostability). manufacturing packaging costs (in the case of reuse), ensuring the availability of Standards and certifications can help processing materials. future recycled material (in the case of recycling), and facilities have greater confidence in the material they supporting regenerative practices and soil health (in are receiving. the case of composting). 1 0 1 1 T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G Sustainable packaging in business-to-consumer Labeling programs such as How2Recycle educate packaging is being reused, refilled, and/or returned should also work to scale the availability of their applications is clearly labeled so that consumers consumers about a package’s components and give multiple times. The lower the return rate, the greater reusable offering across all socioeconomic levels. know which end-of-life stream it has been designed clear instructions for how to prepare materials for the environmental impact of the reusable package. for and belongs to. Labeling packaging with end- recycling. Certifications for compostable packaging Sustainable packaging that is reusable or refillable Reusable and refillable packaging will require of-life instructions gives consumers transparency help ensure it will become valuable finished compost should be part of a system that facilitates high return investments in collection, washing, and refill into the fate of a package. It can also prevent and will not negatively impact soil quality. The or refill rates in practice, rather than simply being infrastructure to create efficiencies in the reverse inaccurate or misleading marketing claims, which distinction between recycling and composting a designed to be durable. logistics. The packaging value chain should also work frustrate consumers and deteriorate trust in brands’ package should be clearly described to reduce towards harmonization of reusable packaging formats, environmental efforts. cross-contamination between these two streams. When designing reusable packaging, companies should so that many brands across a product category can use Standardized labeling schemes for reusable packaging design the reuse offering with equity in mind, by a standardized format to lower costs, pool collection, are still emerging but should be used when they considering the barriers to adoption as a result of any and increase convenience for consumers. Success with become available. higher upfront costs, deposits, or a requirement to use these efforts will require collaboration and alignment technology such as mobile phones or apps. Companies across companies and their supply chains. SPC Resources on Reusability, Reusable How2Compost Reusable Reusable Packaging How2Recycle Recyclability, and Compostability SPC Resources on Reuse & Refill Packaging Packaging Position Guide Guide Statement Reusable Reusable How to know if your Reusable Reusable Packaging Packaging paper packaging is recyclable guide Packaging Packaging Knowledge Library Collaborative Knowledge Library Collaborative Sustainable packaging engages with reuse and refill 4. models such as return on the go, return from home, refill on the go, and refill from home. These models keep packaging materials in use for longer and lower the environmental impacts of a package-product 5. system. Engages with If optimized correctly, the environmental benefits of reusable packaging typically include the reduction of Invests in the growth of recycling single-use packaging waste, lower carbon footprint, reuse and energy savings, and less waste entering material streams. Reusable packaging is durable and can be an and composting infrastructure, end market for recycled materials, closing the loop for refill models materials and facilitating the circular economy. collection, and access Crucial to reusable packaging’s environmental benefit is a high return and refill rate (calculated as the number Companies working on sustainable packaging should Existing recovery infrastructure has challenges of reusable packages returned after use, divided also work on ensuring that their product-package with successfully sorting and capturing value from by the total reusable packages distributed). Return system supports the growth of sortation and lightweight, multimaterial, or complex packages. As a rates that are greater than 80% help ensure that reprocessing infrastructure, such as recycling and result, residential recycling and composting programs composting facilities. This means working to expand are often limited in scope or the materials they are able residential and commercial access to programs that to process. To tackle these challenges, the packaging accept a variety of packaging materials, and to help value chain must work with the recycling and motivate and educate consumers to participate in composting industries to understand their pain points, these collection programs. Effective infrastructure, appropriately design packaging for end-of-life, invest in widespread program access, and consumer new sortation technologies, and support policies that participation are critical to ensuring that packaging is aid the growth of mechanical and chemical recycling recovered. infrastructure. 1 2 1 3 T H E D E F I N I T I O N O F S U S TA I N A B L E PA C KA G I N G On a global scale, sustainable packaging will require made by the producers (typically brands, licensees, investment in collection and infrastructure in countries importers, and/or distributors) in an EPR program can R E S O U R C E S that do not have curbside collection programs or be applied towards a variety of recovery efforts. This Use the following resources to learn about best practices and engage in industry collaboration. processing facilities. Much of the current global waste can include enhanced sortation at material recovery management system relies on waste pickers and others facilities (MRFs), processing equipment at composting • Understanding Compostable Packaging Guide informally employed in the recovery sector. Investing facilities, or reuse and refill infrastructure such as • Compostable Packaging Collaborative in the programs that meet the needs of the individual washing and pooling services, all of which lead to • Organics Facilities Map + Urban Access Tableau Data waste pickers is just as important as investing increased recovery, supported infrastructure, and in advanced sorting technologies for developed more sustainable packaging systems. Beyond recovery • How2Recycle Guide to Recyclability economies. of materials, social and economic equality should • How2Recycle Future Guide be addressed in EPR programs. This can be through Effective Extended Producer Responsibility (EPR) requiring diverse positions on an advisory board or • Flexible Packaging Recovery Collaborative programs will generate much needed financial socially just management through funds or education • Chemical Recycling Collaborative resources from the private sector into recovery programs. infrastructure. The contributions (or payments) • Chemical Recycling Position Statement • Reusable Packaging Guide • Reusable Packaging Collaborative SPC Resources on Recycling Understanding Compostable Compostable • Reusable Packaging Position Statement & Composting Compostable Packaging Packaging Packaging Guide Collaborative Knowledge Library • How to Know if Your Paper Packaging is Recyclable Guide • How2Recycle • How2Compost Organics How2Recycle Facilities & Urban Guide to How2Recycle Recycling Future Guide • Recycled Material Standard (RMS) Access Maps Recyclability Knowledge Library • Using Recycled Plastics Guide • Verifying the Responsible Sourcing of Fiber guide Flexible Chemical Chemical Chemical Packaging Recycling Recovery Recycling Position Recycling Collaborative Collaborative Statement Knowledge Library With the packaging value chain continuously K N OWL E D G E L I B R A RY TO PI CS improving upon the five principles of sustainable The topics available in our knowledge library for a deeper dive into concepts around sustainable packaging. packaging, the industry will be contributing • Recycling • Compostable Packaging towards the goal of a circular economy. • Chemical Recycling • Reuse • Bioplastic • Packaging and Sustainability Projects of STANDARD GreenBlue 1 4 1 5.

June Packaging Policy Roundup

1. A Potential Change to California’s EPR Legislation

What will this law do?

Introduced by Senator Allen, this bill would amend Allen’s previously passed EPR legislation SB 54, or the Plastic Pollution Prevention and Packaging Producer Responsibility Act. The bill would give producers 6 more months to be compliant under the act and permit producers to demonstrate the recyclability and compostability of their materials to CalRecycle

What’s the status of this legislation?

It was referred to the Committee on Natural Resources.

What would this policy look like in action? 

Under SB 54, covered materials are required to be recyclable or compostable by 2032. CalRecycle is authorized to identify materials trending towards the recyclable or compostable requirements, as long as they meet certain criteria. This SB 1231 amendment states that producers would be authorized to petition CalRecycle “to identify material types and forms” that meet designated recyclable criteria and CalRecycle reviews the petitions and data as well as approve or deny the petition. Additionally, the date of compliance is pushed from 18 to 24 months “after the date the department publishes or updates the specified material characterization study.”

Where can I learn more about this law?

If you’re interested in learning more about the bill, you can check out this Resource Recycling update or read the full bill text.

2. Oregon’s EPR Rulemaking Public Comment Period Extended to July 26

What is this comment period?

The Department of Environmental Quality (DEQ)—Oregon’s environmental regulatory agency overseeing the implementation of EPR—is seeking public comment on the rulemaking and implementation of EPR in the state.

What’s the status of this comment period?

The comment period closes on July 26, 2024.

What’s included in this comment period?

The EPR legislation itself requires producers of packaging, paper, and food serviceware to help fund and expand recycling in the state. In this round of rulemaking, DEQ is seeking public comment on topics like: covered product exemptions; environmental impact evaluation standards; recycling facility permits, standards, and fees; living wages and supportive benefits for facility workers; waste prevention and reuse; and more.

Where can I learn more about this comment period?

If you’re interested in learning more about the comment period and the draft rules, you can check out the DEQ’s 2024 rulemaking website.

3. New York’s EPR Bill Failed

What happened with this legislation?

After a second failed attempt, the New York Extended Producer Responsibility (EPR) bill, “Packaging Reduction and Recycling Infrastructure Act” or SB 4246B, did not pass the assembly before the legislature adjourned for the summer.

What’s the status of this bill?

This bill is dead for now, but could come back later in 2024 or next year.

What would this policy look like in action? 

If passed, this bill would enact EPR in New York, making it the sixth state in the country to pass such legislation. Like most EPR legislation, it would set plastic reduction targets, rolled out recycled content requirements, and established a producer responsibility organization to help fund state recycling programs. It also would have banned certain chemicals in packaging materials.

Where can I learn more about this bill?

If you’re interested in learning more about the legislation, you can check out Packaging Dive’s recap from after it failed.

4. California, Colorado, Oregon EPR Deadline

Reminder 

July 1 marks the deadline for producers to  register with Circular Action Alliance (CAA), the Producer Responsibility Organization (PRO) for California, Colorado, and Oregon. Producers that knowingly qualify for an exemption and producers that intend to submit an individual compliance plan are exempt from the deadline.

Learn More

To learn more about registration, tips, and producer definitions, you can visit CAA’s website on producer sign up.

May Packaging Policy Roundup

1. Minnesota’s EPR Bill

What will this law do?

Minnesota’s Extended Producer Responsibility (EPR) legislation requires producers to pay half of the state’s recycling costs by 2029, increasing their share to 90% by 2031.

What’s the status of this legislation?

Gov. Tim Walz signed the legislation, the Packaging Waste and Cost Reduction Act, into law on May 22, 2024. The Act was a part of a larger environmental budget and policy bill. Minnesota is the fifth state to pass EPR legislation.

What would these policies look like in action?

The shared responsibility model, which requires producers to pay half of recycling cost by 2029 and 90% by 2031, is similar to the Oregon EPR legislation in that producers alone will not fund the system.

The final law requires that Producers register with the PRO by July 1, 2026. From there, the initial needs assessment is due at the end of 2026 and the PRO’s stewardship plan is set for October, 2028.

Notably, the final draft doesn’t set performance targets. Instead, it calls for a future needs assessment before setting recycling, composting, waste reduction, reuse and return rates, and post consumer recycled content targets.

Where can I learn more about this law?

For more information on Minnesota’s EPR bill, timeline, and final text, you can check out this Waste Dive article.

2: New York’s Packaging Reduction and Recycling Infrastructure Act

What would these bills do?

These two companion bills (AB 5322 and SB 4246) would introduce Extended Producer Responsibility for packaging materials in New York. They would also advance various reduction, recycling and recycled content targets.

What’s the status of these bills?

These bills are in Committee Assembly and Senate Finance Committee, respectively.

What would these policies look like in action?

These bills use Packaging Reduction and Recycling Organization (PRRO) as opposed to the traditional term Producer Responsibility Organization (PRO). The PRRO, a registered 501(c)(3), works under contract with the Department of Environmental Conservation.

The PRRO collects producer fees, assists producers with compliance, implements the program, and essentially functions as the PRO, but is not technically referred to as a Producer Responsibility Organization. This means that producers would still need to register with the PRRO like they do in the other 4 states that have passed EPR laws (California, Colorado, Maine, and Oregon).

Where can I learn more about these bills?

For more information on New York’s Packaging Reduction and Recycling Infrastructure Act, you can check out this Resource Recycling article.

3: New Jersey Senate Bill 208

What would this bill do?

This bill—first introduced in 2022 and reintroduced in 2024—would require producers of packaging materials to operate packaging stewardship plans individually, or as a group of producers (a PRO). It also requires producers to include in their plans goals for:

  • Minimum post-consumer recycled material content rates
  • And minimum recycling rates for packaging products
What’s the status of this bill?

The bill was heard in the Senate Environment and Energy Committee hearing on May 13th.

What would this policy look like in action?

If passed, producers would need to comply within 18 months after the bill’s effective date.

Producers would be prohibited from selling, offering for sale, importing, or distributing any packaging product in New Jersey unless they’ve engaged in the implementation of, or they’ve fully implemented, a packaging product stewardship plan that aligns with the bill.

Where can I learn more about this bill?

To get a deeper understanding of this bill, you can check out our EPR tool or read the bill online here.

4: Colorado’s Producer Responsibility Program For Recycling

What would this bill do?

This bill (Colorado’s HB 1355) will create a state-wide producer responsibility program to provide recycling services for all residents, public places, small businesses, schools, hospitality locations, and state and local government buildings.

It also advances a needs assessment and requires the PRO to submit a program plan by February 1, 2025.

What’s the status of this bill?

It’s been passed and is currently being implemented.

What would this policy look like in action?

Implementation of this bill involves advisory board meetings with the Colorado Department of Public Health & Environment (CDPHE), the public, the Circular Action Alliance (CAA, which acts as the Producer Responsibility Organization), and the advisory council.

Recent meetings have covered plans to increase targets and producer compliance while also analyzing reimbursement rate models from Canadian provinces. The advisory board is engaging in ongoing discussions and iterative feedback processes, while CAA (the PRO) develops the program plan in Colorado.

Feedback from the public is welcomed and every meeting has time for public comment.

Where can I learn more about this bill?

You can check out all of CDPHE’s meeting recordings, slides, and registration links on their website.

5: California, Colorado, Oregon EPR Deadline

Reminder

July 1 marks the deadline for producers to register with Circular Action Alliance (CAA), the Producer Responsibility Organization (PRO) for California, Colorado, and Oregon. Producers that knowingly qualify for an exemption and producers that intend to submit an individual compliance plan are exempt from the deadline.

Learn More

To learn more about registration, tips, and producer definitions, you can visit CAA’s website on producer sign up.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistribute or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

Stay Ahead of Changes

Don't Wait. Stay Informed.

The world and your industry are changing too fast. You need to know what's happening, and our Legislation Monitor can help. It's a critical resource for anyone who wants to stay ahead of regulatory and legal challenges. Then, discover the other ways that Industry Intelligence Inc. can help your business.

Cookie Preferences

This website uses cookies to enhance your browsing experience, analyze site performance, and deliver personalized content. We use a minimal cookie to remember your preferences. For detailed information about our cookie usage, please review our Privacy Policy.