Stewardship Program for Packaging

FAQ

How does this program work?

The program shifts the cost of managing packaging waste from taxpayers to the producers of packaging materials.  Producer fees are based on the amount of packaging sold in or into Maine and whether the material is readily recyclable.  This structure encourages producers to reduce unnecessary packaging and use materials that are easier to recycle.  The fees are also structured to incentivize environmentally preferable packaging attributes, including the use of post-consumer recycled content, reduced toxicity, litter reduction measures, and accurate labeling.

Reimbursements to participating municipalities are based on the median cost of managing packaging materials rather than a straight reimbursement of actual costs, creating an incentive for efficient waste management practices on the part of the municipality.

Funds in the Packaging Stewardship Fund that are not used for municipal reimbursements or program administration are invested in recycling infrastructure, waste reduction initiatives, and public education in Maine, consistent with Maine’s Solid Waste Hierarchy.

The program does not ban packaging materials or establish packaging design standards.  Producers may continue using packaging of their choice that meets product performance and regulatory requirements.  However, packaging that is less recyclable or contains toxic materials may result in higher payments than other packaging that is considered more recyclable or less toxic.

The program also provides ongoing opportunities for municipalities, producers, recyclers, and other interested parties to participate in recurring decision-making related to investments, Alternative Collection Programs, and determinations of readily recyclable materials.

What packaging material is excluded?

The law excludes: packaging material that is intended for the long-term storage or protection of a durable product; packaging material that is defined as a beverage container in 33 M.R.S. § 3102 (Maine's "Bottle Bill"); and packaging material that contains architectural paint, as defined by 38 M.R.S. § 2144, if at least 80 or 90% of containers collected through a stewardship program are demonstrated to be recycled. 

How will cost to manage packaging material be determined?

The SO will work with several participating municipalities each year to conduct studies that determine the cost to recycle packaging material.  These studies will identify municipal costs associated with labor, equipment, facilities, and energy, and will determine the portion of those costs attributable to packaging material.

Cost studies will also account for contractor overhead or profit paid by municipalities for recycling packaging material, as well as any revenue municipalities receive from the sale of recyclable commodities containing packaging material.  All of these factors will be considered when calculating a municipality’s total packaging recycling costs.

After reviewing the costs reported by participating municipalities, a median cost will be established for each group of similar municipalities.  This median cost will then be used to calculate reimbursement amounts.  As a result, municipalities that manage packaging material at costs below the median for their category may receive reimbursements that exceed their actual costs.

How much money can a participating municipality expect to receive?

It is reasonable to expect that municipal recycling streams consist largely of materials used to package consumer goods.  The cost of recycling these materials varies among municipalities based on the recycling systems they use and changing market conditions.  To help mitigate this variability, the program provides participating municipalities with reimbursement for costs incurred for recycling packaging material. Reimbursement to municipalities will be based on the median price per ton to recycle packaging material for similar municipalities, utilizing data provided by municipalities and cost studies completed by the SO.

Eligible costs may include labor, equipment, transportation, contractor services, and fees required for recycling facilities to accept materials.  These costs will be incorporated into the median cost-per-ton calculation used to determine reimbursements for participating municipalities.

Although estimated reimbursement amounts are not yet available, municipalities that currently incur costs to operate recycling programs can expect a portion of those expenses to be eligible for reimbursement.

Because reimbursements are based on the median cost per ton for similar municipalities, outcomes may vary among participants.  A participating municipality with recycling costs below the median for its category may receive reimbursement amounts that exceed its actual costs.  Conversely, a municipality with costs above the median may receive reimbursement amounts that are lower than its actual costs.

This reimbursement structure is intended to encourage efficient recycling operations.  Since reimbursements are tied to the median cost for similar municipalities, a participating municipality that improves operational efficiency will not necessarily see a reduction in reimbursement.

It should be noted that participating municipalities may receive reimbursement for all packaging material they send for recycling, regardless of whether those materials are designated as readily recyclable.

Who is a producer, and how are producers affected by this program?

Producers are required to register with the SO, report the amount of packaging material associated with products sold in or into Maine, and pay fees based on the tons of packaging material supplied.  Producer fees include an annual registration fee, material-specific fees, and incentive fees that encourage the use of recycled content, reduced toxicity, litter reduction measures, and accurate labeling.

Low-volume producers—defined as producers that supply less than 15 tons of packaging material in or into Maine annually—may use a simplified reporting process and pay a flat fee of $500 per ton of packaging material.

Producers may participate in rulemaking processes, Alternative Collection Programs, and annual program reviews, including reviews of packaging material descriptions and readily recyclable designations.  Producers may also provide input on, and potentially receive funding for, investments in infrastructure and public education initiatives for the management of packaging material.

The program does not ban packaging material types or establish packaging design standards.  Producers may continue to package products in ways that meet product performance needs and other regulatory requirements.  However, producers may reduce their fees by decreasing the amount of packaging material produced, selecting readily recyclable materials or readily recyclable materials with lesser management costs, or participating in an Alternative Collection Program.

What producers are exempt?

The law provides exemptions for: producers with less than $2,000,000 in gross annual revenue for the first three years after the effective date of the contract between the SO and the Department; producers with less than $5,000,000 in gross annual revenue from program year four onwards; producers whose Maine sales were packaged in less than one ton of packaging material; and producers that realized more than 50% of their total gross revenue from the sale of goods acquired through insurance salvages, closeouts, bankruptcies, and liquidations.

A producer is exempt for the first 15 tons of packaging material used to contain, protect, deliver, present or distribute perishable food products that were sold, offered for sale or distributed for sale in or into the State during the prior calendar year.

I'm a municipality, what does this mean for me?

A municipality that chooses to participate in the program may receive reimbursement for the tons of packaging material it recycles.  To participate, a municipality – defined as a city, town, county, township, village or plantation; a refuse disposal district, or a regional association – must collect and recycle at least one material that is designated readily recyclable and comply with annual data reporting requirements.  These requirements include reporting recycling tonnage data to the State through the Municipal Recycling Report and reporting recycling costs to the SO following completion of a cost study and receipt of a cost reporting plan.

Municipalities may also participate in several aspects of program development and implementation.  Opportunities for involvement include participating in rulemaking processes, Alternative Collection Programs, and annual program reviews, including reviews of packaging material descriptions and readily recyclable designations.  Municipalities may also provide input on proposals for investments in recycling infrastructure and education and may receive funding for approved infrastructure and education projects.

I'm a retailer, what does this mean for me?

Any retailer that meets the definition of a producer has the same obligations under the program as any producer would.  A retailer that does not meet the definition of a producer does not have obligations under the program.  Producer Guidance will provide more information and is under development.

A retailer that meets the definition of a producer may apply to establish and operate, or participate in, an Alternative Collection Program to offset program fees for itself and potentially other producers.

Municipalities contract with me for recycling services, what does this mean to me?

To determine municipal reimbursements, the SO must conduct cost studies of participating municipalities and representative audits of material streams and commodities sent to market.  If a participating municipality contracts for recycling services, the cost study process may require participation from the contractor.

A recycling contractor can generally expect to participate in a cost study approximately once every 10 years, as the results of a single study may be used to inform cost determinations for other participating municipalities that use the same contractor.

If a contractor changes their sets of accepted materials or their commodities managed, the SO may require the contractor to participate in a follow-up study to ensure cost and material data remain accurate and representative.

I am a resident of Maine, what does this mean to me?

Maine residents are encouraged to recycle through their municipalities and once established, to participate in approved Alternative Collection Programs.  If a municipality is not currently recycling packaging materials, residents are encouraged to suggest that the municipality consult with the Department regarding program participation and available investment funding for recycling education or to develop and improve their recycling infrastructure.

Funding for recycling and waste management improvements will be available through the Stewardship Program for Packaging and is also currently available through the Waste Diversion Grant Program.  Because participating municipalities are reimbursed based on the tons of packaging material they recycle, municipalities that recycle greater amounts of packaging material may receive greater reimbursement.

Maine residents are also encouraged to support the goals of the program by purchasing products packaged in materials designated as readily recyclable and recycle that packaging through their municipality to maximize their municipality’s reimbursement and save local taxpayer money.

What is the purpose of the Packaging Material Types List?

The Packaging Material Types List describes packaging materials, categorizes them into types, and includes readily recyclable designations, as applicable.  This list serves multiple purposes:

• A producer uses the list to annually report to the SO on the tons of packaging material by type used to contain, protect, deliver, present, or distribute a product it sent in or within the State.
• A municipality participating in the program must provide for the collection and recycling of at least one packaging material type designated readily recyclable.
  

  Note: This does not require the municipality to separate packaging material from the material streams it manages or separate packaging material by packaging material type.  The SO will characterize material streams by percent of packaging material and packaging material by type as part of its cost studies.

• The SO will conduct material and cost audits of material streams based on the packaging material types designated readily recyclable on the list to determine packaging material type fees.

What materials are designated readily recyclable?

For the full list of packaging material types, descriptions, and designations see Appendix A of Ch. 428.

Base material	Material Type
Glass	Clear glass bottles, jugs, and jars Colored glass bottles, jugs, and jars
Metal	Aluminum foil and molded containers Aluminum rigid containers and lids greater than 2 inches Tin/steel rigid containers and lids greater than 2 inches Empty aluminum aerosol containers Empty tin/steel aerosol containers
Paper	All uncoated paper and paper coated on one side only, including cardboard and paperboard Aseptic and gable-top cartons
PET (#1)	PET (#1) clear bottles, jugs, and jars PET (#1) clear other rigids, such as thermoforms and flatpacks
HDPE (#2)	HDPE (#2) natural bottles, jugs, and jars HDPE (#2) colored bottles, jugs, and jars HDPE (#2) other rigids less than 5 gallons HDPE (#2) bulky rigids 5 gallons or greater
PP (#5)	PP (#5) bottles, jugs, and jars PP (#5) other rigids less than 5 gallons