2024 House Bill 5902

Mackinac Center Analysis

The bill mandates a reduction in packaging materials for products sold in Michigan. The bill establishes the Packaging Reduction and Recycling Program and requires that producers register with a Packaging Reduction Organization. The state government will sign an exclusive 10-year contract with a non-profit organization to manage the program. Producers must reduce packaging weight for their products by arbitrary amounts and on an arbitrary schedule. They must begin reducing packaging weight within two years of registering—10% reduction within two years, escalating to a 50% reduction within ten years. They must regularly report the weight of packaging materials used and pay fees to the Program and Organization based on the weight of that packaging. Fees are intended to pay for the collection, transportation, and management of packaging materials, as well as the program's administration. The bill prohibits certain toxic substances in packaging and requires an arbitrary increase of 10 new banned substances in packaging materials every three years. There is also an increasing recycling rate target imposed over time. The bill establishes a Packaging Reduction Fund, financed by producer payments and non-compliance fines. The fund will pay local governments and private companies to implement packaging reduction, reuse, and recycling programs and to produce "public education" to market the program. At least 25% of the funds must benefit "environmental justice communities." EGLE must conduct a statewide needs assessment within 180 days of the bill's enactment and then every five years to identify barriers and opportunities for improving packaging reduction and recycling. EGLE must also create rules to implement the program, regulate contracting with the Packaging Reduction Organization, assess fees, and determine what constitutes recyclable materials The bill also creates an Office of Inspector General within EGLE to evaluate the program's effectiveness and ensure compliance. The bill takes effect on January 1, 2025.