As the head of the Retail Association of Maine, I represent businesses of all sizes, from multi-state retailers to small family-owned shops that have served our communities for generations. While we fully support the goal of reducing waste and protecting Maine’s environment, Maine’s extended producer responsibility (EPR) law for packaging has left many retailers deeply concerned about its complexity, timing and potential costs.
Passed in 2021, the EPR law promises relief for municipalities by shifting waste management costs to producers. While this is an admirable goal, it overlooks a crucial fact: compliance with the complex bureaucracy that this law creates will ultimately fall on Maine’s producers and retailers. Many retailers in Maine, particularly small and mid-sized businesses, are already operating on razor-thin margins complicated by the rising costs of inflation. The uncertain financial implications of this law could push some to the brink.
Adding to this challenge is the rollout process. After three years of development, the Department of Environmental Protection released updated rules just days before Thanksgiving – a time when retailers are already stretched thin preparing for the critical holiday shopping season. This timing leaves little opportunity for retailers to review and understand the 64 pages of regulations, let alone provide meaningful feedback before the Maine Board of Environmental Protection meets on Dec. 5 to consider the rules.
We understand the urgency of implementing this program, but it’s unfair to expect retailers to absorb these changes without clear guidance or adequate time to prepare. Even after three years, the financial costs remain a major unknown. For small retailers, these could be devastating. Even for larger businesses, navigating the complex compliance requirements will mean higher administrative costs, costs that are likely to be passed on to consumers.
Proponents of the law argue that the program will encourage producers to adopt more sustainable packaging with no noticeable effect on prices. Yet, after three years, the rules do not detail which packaging material is preferred, nor the potential cost of different materials. Even if a business wanted to start making a change now, it still can’t determine which material to shift to nor begin estimating how much it will need to pay into Maine’s program. Packaging choices are often dictated by supply chain constraints and cost-effectiveness, especially for smaller retailers who don’t have the purchasing power of national brands. Transitioning to compliant packaging could involve significant upfront investment, raising costs for businesses and, ultimately, for consumers.
Maine’s retail sector is the backbone of our economy, providing more than 80,000 jobs and critical goods to communities across the state. This law risks burdening retailers with new costs and regulatory complexities at a time when many are still recovering from the challenges of the pandemic and grappling with shifts in consumer behavior driven by inflation and online competition.
We do not oppose the goals of the law. Reducing packaging waste and improving recycling are causes we support. However, we urge policymakers to consider the practical realities faced by retailers.
We need transparency on costs. Retailers deserve to know the financial implications of this program before it is implemented. Businesses cannot plan effectively when the price tag of compliance remains a mystery.
We need adequate time for review and implementation. Updated rules released at the last minute, during the busiest season for retailers, do not provide sufficient time for meaningful input or thoughtful preparation.
Small retailers need technical and financial assistance to navigate the complexities of the law. Without support, the law risks widening the gap between large corporations and local businesses.
As retailers, we care deeply about Maine’s environment. Many of us have already taken steps to reduce waste and embrace sustainable practices. We want to be part of the solution, but we need policies that balance environmental goals with economic realities.
Rather than rushing implementation, let’s take the time to craft a program that works for all Mainers – one that helps our environment without jeopardizing the small businesses that are the heart of our communities. We urge the Board of Environmental Protection to be more deliberative, and truly take time to understand the practical implications of these rules. Maine deserves regulations that are fair, transparent and practical for businesses of all sizes.
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