SWEEP Newsletter #28: EPR Bills Come Due as Markets and Capacity Shift

Packaging EPR is now a line item: AutoZone reports paying a combined $575,000 in Colorado EPR fees, and producers are back in court in Oregon and Colorado. At the same time, cardboard prices are well above last year while plastics stay soft, a key food waste digester has paused intake, and processors are using AI to measure what they lose to landfill. For local governments, each of these shifts shows up in contracts, budgets and program plans.


The big picture

This Week in Waste

Policy

Producers Take EPR Fees Back to Court in Oregon and Colorado

The National Association of Wholesaler-Distributors (NAW) asked a federal court on Oct. 19 to pause Oregon’s packaging EPR fees for its members while it appeals an August ruling that upheld the law. Circular Action Alliance (CAA) sends its next invoices in January 2027, and Oregon DEQ can impose civil penalties of up to $25,000 per day. In Colorado, the Auto Care Association moved on Oct. 16 to join NAW’s suit, saying members are billed by two producer responsibility organizations for the same product: CAA for the cardboard shipper and the Lubricants Packaging Management Association for the plastic jug inside it. AutoZone reports paying $575,000 to the two groups in Colorado.

Key takeaway: Both laws remain in force while appeals proceed, but overlapping fee systems and litigation show program rules are still settling.

Sources: Resource Recycling Policy Now · Packaging Dive

Industry

Fiber Prices Lift Recycling Revenue While Plastics and Diesel Weigh on Margins

The national average price for old corrugated cardboard (OCC) held at $91 per ton in October, up from $50 to $55 a year earlier, while post-consumer PET slipped to 2.53 cents per pound from 4.50 cents a year ago. Natural HDPE rose to 40.25 cents per pound from 36.50 cents in September, and PP rose to 7.19 cents. Waste Connections’ third-quarter recycling revenue rose 12% on higher OCC values, offset by weak plastics, and a late-quarter diesel price spike cut its EBITDA margin by about 30 basis points. The company has added fuel and material surcharges, which its CFO said some competitors have not.

Key takeaway: Commodity revenue shares swing with fiber prices, and fuel surcharge clauses are spreading. Local governments renewing collection or processing contracts should review how commodity and fuel risk is shared.

Sources: Resource Recycling · Waste Dive

Industry

AI Tools and EPR Funding Reshape Where Recyclables Get Sorted

In Sarasota, Florida, Circular Services installed an AI-enabled robot from Glacier on its residue line to pull aluminum cans and HDPE that would otherwise be landfilled, with an upstream AI scanner measuring how much recyclable material remains in the residue. The facility processes 50 tons per hour of single-stream material. In Oregon, the packaging EPR program is opening RecycleOn drop-off centers, with a goal of 144 by 2027. In Genesee County, Michigan, commissioners are looking for a new MRF site after residents raised concerns about lack of consultation and choosing a site near the river and a cemetery. The project has already $1.5 million in design and site preparation fees.

Key takeaway: Measuring what is lost in MRF residue turns a disposal cost into performance data. As EPR raises reporting expectations, local governments can ask their processors for residue composition data.

Sources: Waste Dive

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