Stewardship Program for Packaging

This program shifts the cost of managing packaging material from taxpayers to producers. Because producer payments are based on the amount of packaging material sold in or into Maine and adjusted to incentivize environmentally preferable attributes, such as lower toxicity and higher recyclability, this program provides incentives for producers to choose more readily recyclable packaging and use less packaging.

Reimbursements to participating municipalities reinforce Maine’s Solid Waste Hierarchy and reflect the median cost of managing packaging material, thereby providing incentive for improved efficiency.

Funds paid into the packaging stewardship fund that are not used for municipal reimbursements or program administration are used to improve recycling infrastructure and education in Maine.

The program allows for participation by municipalities, producers, recyclers, and other interested parties.

This program does not ban or create construction standards for packaging material. A producer can continue to package its products in ways that align with product needs and other regulatory requirements. However, some packaging material – due to its volume, toxicity, or lack of recyclability – will require higher payments into the packaging stewardship fund.

Municipalities are not required to participate in this program.

The law defines a producer of packaging material as the brand owner of the packaged product or, if the brand owner has no U.S. presence, the producer can be a sole importer of the product into Maine.

A producer is required to report to the SO on the packaging material associated with its products sold in or into Maine and pay into the packaging stewardship fund. A low-volume producer, defined as a producer sending less than 15 tons of packaging material in or into Maine on an annual basis, has the option of reporting in a simplified manner and paying a flat fee of $500 per ton of packaging material produced.

Producers are encouraged to participate. Producers can participate in the rulemaking processes, participate in alternative collection programs, provide input on proposals for investment in infrastructure and education, receive funding for investments in infrastructure and education, and participate in the program’s annual process, such as designating material as readily recyclable.

A producer or group of producers may choose to establish an alternative collection program to collect and manage packaging material. An alternative collection program must be approved by the Department. A producer that manages a type of packaging material through an alternative collection program may wholly or partially offset its payment obligation with respect to that same type of packaging material.

Producers do not need to change their packaging material, however, a producer can reduce its payment obligation by reducing its packaging material, increasing the recyclability of its packaging material, or participating in an alternative collection program.

This program does not require municipalities to participate. However, municipalities that do participate receive reimbursement for packaging material management costs based on the median per ton cost of managing packaging material by similar municipalities. 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 all materials designated readily recyclable and annually report the information necessary to determine costs and tons of material managed. The SO assists participating municipalities in meeting their reporting requirements.

There are several ways municipalities may provide input and be involved in the program. Municipalities can participate in the rulemaking processes, participate in alternative collection programs, provide input on proposals for investment in infrastructure and education, receive funding for investments in infrastructure and education, and participate in the program’s annual process, such as designating material as readily recyclable.

A participating municipality may increase its reimbursement by recycling more and otherwise moving waste up the State’s solid waste management hierarchy. Because participating municipalities will be reimbursed for recycling packaging material based on the median per ton cost to similar municipalities, management improvements that increase efficiency will not decrease the reimbursement a participating municipality receives from the program.

A retailer who meets the definition of a producer has the same obligations as a producer for the packaging material it produced and sold in or into Maine.

Retailers who do not meet the definition of a producer do not have any obligations under this program.

To meet their reporting obligations, participating municipalities require information from contractors, including information obtained through program audits. Improvements to the efficiency and effectiveness of recycling operations will positively affect the municipalities that partner with a recycler.

Recyclers can provide input and be involved in the program. Recyclers can participate in the rulemaking process, participate in alternative collection programs, provide input on proposed investments in infrastructure and education, receive funding for investments in infrastructure and education, and provide input to decisions regarding the list of readily recyclable materials.

Maine residents are indirectly affected in a few ways. Waste management of packaging material, previously funded through municipal taxes and fees, has a new source of funding. Municipal recycling programs may begin to accept more materials. Recycling infrastructure should improve, making recycling easier. As a result of the producer payment structure, the packaging material seen on store shelves should become more recyclable. Citizens are encouraged to take advantage of recycling opportunities and support products with readily recyclable packaging material through their consumption choices.

The law provides exemptions for producers as well as exemptions for the packaging material associated with certain products. Producers with less than $2,000,000 in gross annual revenue are exempt; producers whose Maine sales were packaged in less than 1 ton of packaging are exempt; producers that realized more than 50% of their total gross revenue from the sale of goods acquired through insurance salvages, closeouts, bankruptcies, and liquidations are exempt; and producers of perishable food selling products with less than 15 tons of total packaging material are exempt.

In addition to the producer exemptions, the law exempts some packaging material, specifically. The following packaging material is exempt: packaging that is intended for the long-term storage or protection of a durable product; packaging that is defined as a beverage container in 33 MRS §3102 (Maine's "Bottle Bill"); and packaging the 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 recycled.

In addition, 38 M.R.S. § 2146 requires that the Department review packaging material associated with certain federally-regulated products to determine whether any of that packaging material should be exempt from financial obligation.

Please email MainePackagineEPR@maine.gov with questions on this program or to receive updates on opportunities for involvement.