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T H E V O I C E O F T H E P L A S T I C S I N D U S T RY I N T H E W E S T

W W W. W E S T E R N P L A S T I C S . O R G D E C E M B E R 2 0 1 3

T H E N E W S L E T T E R O F T H E W E S T E R N P L A S T I C S A S S O C I AT I O NWPA TODAY

F E AT U R E :

WPA SUPPORTS OPERATIONCLEAN SWEEPBY JOHN P ICC IU TO , WPA P R ES I D ENT

Our industry is too often plagued

by images of plastic waste littered

on local beaches. While there is

some debate over the ultimate

responsibility for much of this

waste, there is one aspect of

marine debris that we are respon -

sible to manage, that being

plastic pellets. Plastic pellets

that have spilled at manufactur-

ing facilities or in transit can be

washed down storm drains and

end up on our beaches, in our

oceans and waterways. Although

we have made progress dealing

with this issue, it is a bigger

problem than many realize and

the solution rests solely with us.

To this end, the WPA has recently

signed on as a supporting mem-

ber of Operation Clean Sweep

(OCS) to give our members the

tools to keep resin pellets out

of the environment.

Operation Clean Sweep is an

international program designed

to empower and aid employees

of the plastics industry to keep

resin pellets out of the marine

environment. OCS was created

with the many levels of the resin

plastic business in mind, includ-

ing resin manufacturers, plastic

processors, trucking and rail

companies transporting the pel-

lets, and the plastic machinery

and equipment companies that

use the resin pellets. Operation

Clean Sweep is a simple step to

help strengthen your company’s

sustainability initiatives, safety

record, financial bottom line and

reputation in the community.

Becoming a member of OCS is

simple. Visit www.opclean-

sweep.org and sign the pledge.

You will immediately be able to

take advantage of all of the OCS

tools posted online. These include

customizable checklists for both

employees and managers to con-

duct site and equipment audits.

Also included are posters to hang

around the work place to help

encourage everyone to help

reduce pellet waste. You will

receive an OCS flag, a certificate

of participation and an OCS logo

to highlight your company’s

commitment to sustainability.

WPA is committed to a sustain-

able future. With the involvement

of companies such as yours, we

can keep resin pellets where

they belong: in our plastic

products, not in the ocean.

What are you waiting for? Take

the OCS pledge! •

I N T H I S I S S U E :

Feature Article 1

Operation Clean Sweep 2

Bag Bans 4

Canada 7

Insurance Issues 10

Biodegradability 12

Recycling 16

Sustainability 24

Legislative Issues 29

Member Press Releases 34

Voter Initiative 43

N E X T W PA M E E T I N G :J A N U A RY 7

Resin Forecast 2014

SOCAL MEETING

SEE DETAILS, PAGE 3

Sponsor: Westlake Chemical

John Picciuto, President of the Western Plastics Association

http://www.westernplastics.org/

2


O P E R AT I O N C L E A N S W E E P :

PAC WELCOMED AS F IRST SUPPORTER MEMBER OFOPERATION CLEAN SWEEPBY PAC , THE PACKAG ING ASSOC IAT ION

The board of directors of the

Packaging Association (PAC) and

the leaders of their PAC NEXT

initiative announced today the

signing of an Memorandum of

Understanding to begin promot-

ing Operation Clean Sweep®

(OCS) to resin pellet handling

operations within their member-

ship. Originated by the Society of

Plastics Inc. (SPI) more than 25

years ago, OCS is now a joint

program of SPI and the American

Chemistry Council (ACC) and is

licensed to the Canadian Plastics

Industry Association (CPIA) to

administer and promote in

Canada. OCS is an environmental

stewardship program that has

been implemented by almost 200

U.S. companies, 70 Canadian

companies, and close to a dozen

international plastics organiza-

tions around the world including

the CPIA.

The global plastics industry is

committed to its role as an envi-

ronmental steward. Ensuring that

spilled resin pellets—the raw

material from which plastic prod-

ucts are made—do not make

their way into local waterways,

lakes or oceans is a priority.

Resin pellet loss can occur in

manufacturing plants where

pellets may be inadvertently

washed down drains or lost

during transportation. The goal

of OCS is to help resin pellet

handlers implement systematic

housekeeping and pellet contain-

ment practices towards achieving

zero pellet loss.

“We’re excited to be working with

SPI, ACC and CPIA to help promote

the OCS program and to ensure

our members engaged in resin

pellet handling sign onto the OCS

program” said James Downham,

PAC President and CEO. “PAC and

PAC NEXT urge all of their mem-

bers who handle resin pellets to

take the OCS pledge to prevent

the loss of resin pellets into the

environment. We all agree that

plastic pellets don’t belong in the

environment, and this program

can help us practice better pellet

stewardship across our industry.”

SPI President and CEO Bill

Carteaux added, “Our organiza-

tion is pleased to have PAC and

PAC NEXT as a supporter to

promote OCS among its member-

ship. Protecting the environment

takes industry cooperation, and

we are delighted to share a pro-

gram that has helped hundreds

of other companies keep resin

pellets out of waterways and

pursue zero waste.”

CPIA President and CEO Carol

Hochu said, “CPIA is delighted

with the support from PAC and

PAC NEXT and looks forward to

working together, building and

expanding upon our current

efforts to enlist more and more

companies into the OCS program.

ACC’s Vice President of Plastics

Steve Russell added, “Industry

collaboration is essential in tack-

ling marine debris, both at home

and globally. PAC’s support of

OCS helps further unite the value

chain on essential best practices

for keeping pellets out of our

waterways.”

The OCS program and manual

contain guidelines to help plant

operations managers reduce

pellet loss to the environment.

The OCS manual and customiz-

able implementation tools are

available online at no cost to

companies wishing to implement

the OCS program. Learn more

about the program and sign

onto the OCS program at

www.opcleansweep.org for

plants operating in the U.S.

and through the CPIA website

www.plastics.ca/ocs for plants

operating in Canada. •Reprinted from the PAC press

release, December 9, 2013.

CA L I FORN IA W I L L HAVEENOUGH DATATO E XAM INE THE P E R ENN IA LARGUMENTS . .

U P C O M I N G W PA P R O G R A M : S O C A L M E E T I N G

JANUARY 7, 2014VIRGIN AND RECYCLED RESIN FORECAST 2014:• Forecast of resin prices and demand with a focus on the North American plastic manufacturing market

• Review of supply/demand and cost trends

• Discussion of how these issues will impact resin pricing

Guest Speakers: Joel Morales from IHS and Kathy Hall from PetroChem Wire

Joel Morales joined IHS in March 2013 as Director of Polyolefins for North America. Prior to joining IHS, Joel managed resin procurementfor Silgan Plastics, a major, blow-molding plastics converter. He brings a processor’s perspective to the organization and will take an activerole in the continued development of the company’s global plastics services. Joel brings a wealth of industry knowledge to IHS through multi-ple stints along the plastics’ value chain. He began his career with polyethylene manufacturer, Solvay Polymers, which later became Ineos, intechnical services supporting Mexico and Latin America before he was moved into field sales. After 5 years at Solvay Polymers, Joel movedinto resin distribution sales as a Product Manager where he managed and sold polyethylene and polypropylene resins into various customersegments. Joel graduated from the Massachusetts Institute of Technology with a B.S. in Chemical Engineering.

Kathy Hall is the Executive Editor of PetroChem Wire, a daily newsletter she created in 2007 to serve the U.S. olefins and polymers marketsby providing useful and clear information about commodity chemical pricing and operations. The company has grown from a staff of oneproducing a single daily report to a staff of nearly 10 who produce three daily reports and several monthly reports. The PetroChem Wireserves as an industry benchmark for U.S. ethylene, propylene, polyethylene and polypropylene and is used by the NYMEX/CME Clearportcontracts for these products.

THANK YOU TO MEETING SPONSOR: WESTLAKE CHEMICALWestlake Chemical Corporation is a manufacturer and supplier of petrochemicals, polymers and building products with headquarters inHouston, Texas. The company’s range of products includes ethylene, polyethylene, styrene, propylene, caustic, VCM, PVC resin and PVCbuilding products, including pipe and specialty components, windows and fence. For more information, visit www.westlake.com.

.

WHEN:Tuesday, January 7, 2014 5:30 PM Registration & Networking 6:30 PM Program & Dinner

WHERE:Doubletree Hotel13111 Sycamore Drive, Norwalk, CATel: 562.483.2705

* If you require a hotel room for this meeting, contact Doubletree Hotel directly.

COST:RSVP by January 3, 2014WPA Member: $70 / Member Guest: $85First-time Attendee: $85Non-WPA Member: $135

RSVP after January 3, 2014WPA Member: $95 / Member Guest: $105First-time Attendee: $105Non-WPA Member: $150

Walk-ins at the event: Add $10.Cancellation Policy: Cancellations must be made 48 hoursprior to the event. Registration is non-transferable to anotherevent; send a substitute if you are unable to attend. No-showswill be billed.

RSVP today: [email protected]

EVENT SPONSORSHIP:Sponsoring an upcoming WPA program is a great way to increaseyour firm’s visibility to hundreds of decision-makers within our industry.

WPA would like to add your com-pany's name to our prestigious list of supporters! There’s a sponsorshipoption for every need and everybudget.

Contact Laurie Hansen for details onhow your company can market its services and products to key industryprofessionals.

916.930.1938 or [email protected]

Virgin & Recycled Resin

4


B A G B A N S :

A CHANCE TO SETTLE THE PLASTIC BAG BAN DEBATEBY L . A . T IMES ED I TOR IA L BOARD

As it does each year, a bill to ban

plastic bags in California will

almost certainly come before the

Legislature in the next session.

Each year, under heavy lobbying

by the makers of such bags—

who say the bill will kill jobs and

wreak other forms of havoc—the

Legislature has folded. State

Sen. Alex Padilla (D-Pacoima),

whose bill in the most recent

session failed by a narrow

margin, has indicated that he

plans to try again.

California has a chance to do

things differently this time, with-

out the endless back and forth

about whether the bans effec-

tively reduce the trash that finds

its way into giant patches of

floating plastic in the oceans,

and without disputed claims that

California companies will go

under. Because this time, it has

the opportunity to replace con-

jecture with facts.

Close to 90 cities and counties in

California have passed bans on

plastic bags. Once the ban takes

effect in the city of Los Angeles,

at the start of the new year, such

bans will cover a third of the

state’s population. Usually, the

bans allow customers to purchase

a paper bag for 10 cents or so;

Padilla’s bill would have done

that as well. This means that

there is now enough information

to study, in robust and real-life

ways, whether fewer bags are

found on the beaches, an indica-

tor of how many make their way

into the ocean. Have cities and

counties lost any jobs as a result

of bag bans? How many?

We actually prefer fees on both

plastic and paper bags. They

have proved effective where they

have been tried—there’s simply a

mental barrier to paying a nickel

for a bag—and they give con-

sumers more convenience and

choice. But a ban on plastic

bags appears to be the next best

choice. It has been our belief that

banning the flimsy carryout bags

with handles will reduce the

environmental toll on the ocean

without significantly harming

employment. (Other plastic bags,

such as those used for produce

or the ones that protect news -

papers from rain, would not be

affected.)

But we are willing to be per-

suaded otherwise by conclusive

data that show plastic bag bans

do more harm than good. So

should industry. Most important,

so should lawmakers in

Sacramento. •Reprinted from the L.A. Times,

November 27, 2013.

CA L I FORN IA W I L L HAVEENOUGH DATATO E XAM INE THE P E R ENN IA LARGUMENTS .

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B A G B A N S :

TOP 8 WAYS GROCERS CAN SURVIVE PLASTIC BAG BANSBY P E T E GRANDE , COMMAND PACKAG ING

All over the country, plastic shop-

ping bags are being outlawed in

grocery stores and other retail

outlets. Fees are being imposed

on all shoppers who do not bring

their own bags. Plastic is no

longer an available option at

the checkout counter except at

stores that carry thicker, certifi-

able reusable plastic bags.

It’s a steep adjustment period for

shoppers when they hit the

checkout line, so here are a few

ways grocers can survive the

switch away from t-shirt style

plastic bags:

1) Have a plan on how to prepare

your customer for this change.

Post signs and counter toppers

that provide your customer with

a clear set of choices for their

carry bags options.

2) Know that initially most

customers will not be happy.

Many of your customers will be

confused by this new policy and

will want to know why.

3) Brief your staff on how to

respond to customers. Create

concise scripts so employees

will know how to best respond.

4) When asked what is the ‘best

choice’ be prepared to answer

with confidence:

a. Paper or Plastic? At the cost

of $0.10 there are only two

choices—one is single-use

and one is reusable.

5) Have a strategy to encourage

reuse and recycling. Showing

your understanding and support

for the ordinance will help put

your customers at ease.

6) Provide your customers fun

strategies to remind them to

bring in their bags. Encourage

customers to keep bags in their

car, by the front door or near

their car keys as a good visual

reminder to take them with them

to your store.

7) Don’t put meat or liquid in

reusable woven or sewn bags.

The reason, the pores in these

bags hold bacteria easily. Gener-

ally, people don’t wash woven

bags, which is why they have

been proven to spread the flu

and other illnesses.

8) Encourage recycling of bags

when they reach the end of their

use. This will help create a

closed-loop system similar to

Europe where as much as 90

percent of all plastic is recycled

and is not buried in a landfill ,

putting you at the center of the

solution as it well positions

your brand.

Bag bans are intended to force

shoppers to change some of

their habits, which puts you and

your business in the cross hairs

of frustration. Using these tips

will hopefully make life easier for

you but especially your customer

—by keeping in mind that not all

bags are created equal. Being a

part of the smarter solution

benefits your business in good-

will and loyalty from your

customers. •Pete Grande is CEO of Command

Packaging and Encore Recycling,

a new venture in Salinas, Calif.,

that will remove 100 million lbs.

of Ag plastic from landfills

annually to create bag ban

compliant plastic bags. More

info at www.smarterbags.com.

BE ING A PARTOF THE SMART E RSO LUT ION BENEF I T S YOURBUS INESS .

6


B A G B A N S :

COMMISSION PROPOSES TO REDUCE PLASTIC BAGS USEBY EUROPEAN COMMISS ION

Today the European Commission

adopted a proposal that requires

Member States to reduce their

use of lightweight plastic carrier

bags. Member States can choose

the measures they find most

appropriate, including charges,

national reduction targets or a

ban under certain conditions.

Lightweight plastic bags are

often used only once, but can

persist in the environment for

hundreds of years, often as

harmful microscopic particles

that are known to be dangerous

to marine life in particular.

Environment Commissioner

Janez Potocnik said: “We’re

taking action to solve a very

serious and highly visible envi-

ronmental problem. Every year,

more than 8 billion plastic bags

end up as litter in Europe, caus-

ing enormous environmental

damage. Some Member States

have already achieved great

results in terms of reducing

their use of plastic bags. If

others followed suit we could

reduce today's overall con-

sumption in the European Union

by as much as 80%.”

Technically, the proposal amends

the Packaging and Packaging

Waste Directive with two main

elements. First, Member States

are required to adopt measures

to reduce the consumption of

plastic carrier bags with a thick-

ness below 50 microns, as these

are less frequently reused than

thicker ones, and often end up

as litter. Second, these measures

may include the use of economic

instruments, such as charges,

national reduction targets, and

marketing restrictions (subject to

the internal market rules of the

Treaty on the Functioning of the

EU). The high reduction rates

achieved in some EU Member

States, through the introduction

of charges and other measures,

show that results can be achieved

through effective action.

The proposal follows on from

measures taken by individual

Member States and from calls by

EU Environment Ministers on the

Commission to assess the scope

for action at EU level. It comes

after extensive public consulta-

tions that found broad support

for an EU-wide initiative in this

area.

BackgroundThe properties that make plastic

bags commercially successful—

low weight and resistance to

degradation—have also con-

tributed to their proliferation in

the environment. They escape

waste management streams and

accumulate in our environment,

especially in the form of marine

litter. Once discarded, plastic

carrier bags can last for hundreds

of years. Marine littering is

increasingly recognized to be a

major global challenge posing a

threat to marine eco-systems and

animals such as fish and birds.

There is also evidence indicating

large accumulation of litter in

European seas.

In 2010, an estimated 98.6 billion

plastic carrier bags were placed

on the EU market, which amounts

to every EU citizen using 198

plastic carrier bags per year. Out

of these almost 100 billion bags,

the vast majority are lightweight

bags, which are less frequently

re-used than thicker ones. Con-

sumption figures vary greatly

between Member States, with

annual use per capita of light-

weight plastic carrier bags rang-

ing between an estimated 4 bags

in Denmark and Finland and 466

bags in Poland, Portugal and

Slovakia.

For more information:

Click here to link to the draft

proposal and to the study. •Reprinted from European Com-

mission press release, Brussels,

November 4, 2013.

IN 2010 AN ES T IMATED 98 .6B I L L ION P LAS T ICCARR I E R BAGSWERE P LACEDON THE EU MARKE T.

http://ec.europa.eu/environment/waste/packaging/legis.htm#plastic_bags

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C A N A D A :

PACKAGING & PRINTED PAPERPROGRAMS ACROSS CANADA:LOOK BACK & LOOK FORWARDBY CANAD IAN S T EWARDSH I P S E RV ICES A L L I ANCE

Businesses participating in Pack-

aging and Printed Paper (PPP)

programs across Canada (also

known as “Blue Box” programs)

have been advocating for a

simpler way to interact with

stewardship programs for the

better part of a decade.

As provincial governments regu-

lated new PPP programs in differ-

ent provinces the business

community responded by creat-

ing a number of stand-alone

provincial stewardship organiza-

tions (SO (Ontario)—2003; EEQ

(Quebec)—2005; MMSM (Mani-

toba)—2010) resulting in

duplication of administrative

investments and a lack of coordi-

nation and sharing of best

practices across provincial juris-

dictions. The fragmentation of

data and management systems

also interfered with the ability to

systematically identify cost driv-

ers and scale up efforts to man-

age or oversee reverse supply

chains for PPP consistently over

a broader geography. Ultimately,

this arrangement has led to

higher costs and a fragmented

experience for Canadian con-

sumers whose recycling services

differ markedly from one province

to another and from one munici-

pality to another.

In the fall of 2012, Canadian

Stewardship Services Alliance

(CSSA) was formed to begin

the process of harmonizing PPP

programs across the country and

to arrest the development of new

stand-alone organizations in

provinces that were at the early

stages of issuing regulations.

CSSA is a national, non-profit

organization, founded by leading

retailers and manufacturers,

bringing together key players to

achieve better recycling perform-

ance. We’re industry-led and

industry-funded, working on

behalf of Canadian businesses

that participate in stewardship

programs, as well as partnering

with provincial stewardship

organizations, provincial govern-

ments, local governments and

waste management companies

to provide recycling and waste

management services, and lead-

ing expertise to nearly 20 million

Canadians. We are proud to

include the following members of

our family of recycling organiza-

tions managed under one admin-

istrative umbrella.

We expect this family to grow as

other provinces such as Alberta

and Nova Scotia (together with

the other Atlantic provinces)

begin to consider new extended

producer responsibility regula-

tory frameworks for packaging

and printed paper.

For our stewards (sometimes

known as “producers”) CSSA

aims to deliver a seamless,

administratively harmonized

service to make it easy and

convenient to discharge your

PPP obligations regardless of

how many provinces you do

business in.

2013 marked the first step in the

journey to deliver a One Window

approach to registration and

reporting for stewards. CSSA

assumed responsibility for the

WeRecycle portal and enabled it

for use by stewards reporting for

MMBC. 2014 will see the further

enhancement of this single sys-

tem to incorporate SO, MMSM,

and MMSW registration, report-

ing and invoice payment. The

fragmentation of data and man-

agement systems was success-

fully arrested. Our national

stewardship services centre

stands ready to assist you with

any question you may have

regarding any of the PPP pro-

grams we administer.

We are also standardizing a

number of stewardship program

features providing for a common

definition of who is an obligated

party, a national list of PPP

(Continued, see page 8)

CSSA WASFORMED TOBEG IN THEP ROCESS OFHARMONIZ INGPP P P ROGRAMSACROSS THECOUNTRY.

8


CSSA D I SCUSS ION PAPE R [CONT ’D ]

materials, consistent reporting,

invoicing and audit processes. By

introducing national standards

and developing national bench-

marks to measure program per-

formance, we will be in a better

position to control steward fees

and costs into the future.

Completing the administrative

harmonization process will take

time and there are a number of

areas where we see opportuni-

ties for future improvement. We

look forward to engaging with

stewards and learning more

from you about what makes

an optimal stewardship services

experience.

On the legislative and regulatory

front—harmonization is more

complex and, arguably, a bigger

prize to achieving some of the

results we seek. We will work

with provincial governments to

ensure that regulatory frame-

works are harmonized to the

greatest extent possible and

we will advocate for core issues

in all legislative frameworks.

Provincial and local governments

can be confident that we will

develop program plans that are

consistent across the country in

order to promote predictability

and stability for all our stewards,

consumers and government

stakeholders. As a national

organization with a perspective

that spans provincial borders,

CSSA aspires to stimulate a

different dialogue, and offer

non-partisan, evidence-based

perspectives on the design of

programs, the nature and scope

of regulatory incentives to deliver

desired policy outcomes, and the

best ways for engaging the con-

sumer to maximize participation

and support. •Reprinted from Part 1, CSSA’s

Annual Steward Meeting,

October 31, 2013. Click here

to view the full report.

CSSA AS P I R E S TO S T IMU LAT E A D I F F E R ENT D I A LOGUE ANDOFFE R NON -PART I SAN P E RS P ECT I V ES .

http://www.cssalliance.ca/wp-content/uploads/2013/11/CSSA-Discussion-Paper-for-Annual-Steward-Meeting-October-31-2013.pdf

http://www.reifenhauserinc.com/

9


C A N A D A :

BRIT ISH COLUMBIA EPR FEES 3.5TIMES HIGHER THAN ONTARIOBY ENV I RONMENTA L PACKAG ING INTE RNAT IONA L

Multi Material British Columbia

(MMBC) last week announced

the 2014 fees for its residential

stewardship plan for packaging

and printed paper that are an

average of 3.5 times higher than

Ontario’s—with some signifi-

cantly higher, most notably:

• “steel packaging,” which is

5.06 cents/kg in Ontario com-

pared to 52 cents/kg in British

Columbia

• “other aluminum packaging,”

which is 6.57 cents/kg in Ontario

and 45 cents/kg in British

Columbia

MMBC cited several reasons for

the higher fees:

• British Columbia is a full EPR

program (stewards pay 100% of

the costs) with a much higher

target recycling rate (75%) com-

pared to Ontario (50% and 60%,

respectively)

• The program has higher supply

chain costs due to a number of

factors, including geography,

population density and carbon

taxes

• An existing comprehensive

deposit system for beverage

packaging that runs parallel

to the packaging and printed

paper program, resulting in a

loss of aluminum and PET

revenues

Comparative material fees by

province are available online:

Click to view the report. •Reprinted from EPI News Alert,

October 31, 2013.B LUE BOX F E ESAVERAGE 3 .5T IMES H IGHERIN B R I T I SH COLUMB IA THANIN ONTAR IO .

https://www.swiftpage4.com/speasapage.aspx?X=2W160NXBI9FW7AQ800ZHWA

10


I N S U R A N C E I S S U E S :

DO YOU KNOW YOUR EQUIPMENT RISKS?BY TODD S INCOCK , HUB INTE RNAT IONA L

Since your business depends on

equipment to function properly,

to keep it going and to maintain

a revenue stream, a breakdown

could create a potentially devas-

tating financial impact.

Due to sophisticated and rapidly

changing technology, virtually all

of today’s business equipment

contains sensitive and fragile

components that are very sus-

ceptible to damage. The total

cost of a breakdown—the equip-

ment itself, consequential dam-

age, business interruption, and

resulting lost income and cus-

tomers—can be tremendous.

Unfortunately, a standard prop-

erty insurance policy will not

cover these types of losses.

Add it all up and you begin to

see why Equipment Breakdown

coverage makes perfect sense.

Equipment Breakdown coverage

pays for the loss that results

when equipment is damaged by

mechanical breakdown, power

surges, electrical short circuits,

overload, electrical arcing, motor

burnout or centrifugal force—

even if caused by operator error.

What Are the Most Common

Equipment Breakdowns?

Common breakdowns include

production machinery, electrical

systems, air conditioning and

refrigeration, computers and

communication equipment,

boilers, and mechanical

equipment.

Know your coverage, know

your risk. •

THE TOTA L COSTOF EQU I PMENTBREAKDOWNSCAN BE T R EMENDOUS .

11


http://www.hubinternational.com/

12


B I O D E G R A D A B I L I T Y :

FEDERAL TRADE COMMISSIONPROTECTING AMERICA’S CONSUMERSBY M I TCHE L L J . KATZ , OF F ICE OF PUB L IC A F FA I R S

The Federal Trade Commission

today announced six enforce-

ment actions, including one that

imposes a $450,000 civil penalty

and five that for the first time

address biodegradable plastic

claims, as part of the agency’s

ongoing crackdown on false

and misleading environmental

claims.

The plastic cases include a com-

plaint against a company that

markets an additive it claims

makes plastic products

biodegradable and four com-

plaints and proposed consent

orders against companies that

marketed various plastics with

allegedly false and unsupported

claims that their products were

biodegradable. In the civil penalty

case, the FTC filed a complaint

and consent order against a

company for violating a 1994

FTC order that prohibited it from

making unsupported green

claims for its paper plates

and bags.

All of these cases are part of the

FTC’s program to ensure compli-

ance with the agency’s recently

revised Green Guides. The Com-

mission publishes the Guides

to help businesses market their

products accurately, providing

guidance as to what constitutes

deceptive and non-deceptive

environmental claims.

“It’s no secret that consumers

want products that are environ-

mentally friendly, and that com-

panies are trying to meet that

need,” said Jessica Rich, Director

of the Federal Trade Commis-

sion’s Bureau of Consumer

Protection. “But companies that

don’t have evidence to support

the environmental claims they

make about their products erode

consumer confidence and under-

mine those companies that are

playing by the rules.”

Each of the FTC’s plastics matters

and, where appropriate, the

proposed consent order, and

the paper products civil penalty

settlement are detailed below.

ECM Biofilms, Inc. is based in

Ohio and markets its additives

(which allegedly make plastic

products biodegradable) under

the trade name MasterBatch

Pellets. It advertises its additives

on its website and through mar-

keting materials, such as fliers

and brochures that are available

to distributors and manufacturers

that incorporate ECM additives

into their products. According to

the complaint, ECM also issues

its own “Certificates of Biode -

gradability of Plastic Products,”

which ECM allegedly uses to

convince its customers and end-

use consumers that its additive

makes plastic products

biodegradable.

ECM allegedly claimed, for exam-

ple, that “plastic products made

with [its] additives will break

down in approximately nine

months to five years in nearly all

landfills or wherever else they

may end up.” The complaint

alleges that these purportedly

biodegradable plastics do not in

fact biodegrade within a reason-

ably short period of time after

disposal in a landfill. Moreover,

the complaint alleges that ECM

has no substantiation to support

its claims that its additive makes

plastic biodegradable.

The Commission complaint

charges ECM with violating the

FTC Act by misrepresenting that:

1) ECM plastics (plastics made

with ECM additives) are biode -

gradable and will completely

break down within a reasonably

short period of time after cus-

tomary disposal; 2) ECM plastics

are biodegradable in a landfill;

3) ECM plastics are biodegrad-

able in a stated qualified time-

frame; and 4) that various

scientific tests prove ECM’s

biodegradability claims. Finally,

the complaint charges ECM with

providing its customer and inde-

pendent distributors—through

the distribution of its promo-

tional materials—with the means

to deceive consumers. The notice

order attached to the complaint


F TC CRACKSDOWN ON M I S L EAD INGENV I RONMENTA LMARKE T INGCLA IMS .

13


would, among other things,

prohibit ECM from engaging in

each violation alleged in the

complaint.

The FTC’s complaints against the

following companies charge

them with misrepresenting that

plastics treated with additives

are biodegradable, biodegrad-

able in a landfill, biodegradable

in a certain timeframe, or shown

to be biodegradable in a landfill

or that various scientific tests

prove their biodegradability

claims. The FTC also alleges that

the companies lacked reliable

scientific tests to back up these

claims.

American Plastic Manufacturing

is based in Seattle, Washington,

and was an ECM customer until

at least December 2012. The FTC

alleges that APM advertised its

plastic shopping bags on its web-

site as biodegradable, and sold

them to distributors nationwide.

APM’s marketing materials

claimed that its products were

biodegradable based on the use

of the additives sold by ECM.

CHAMP, located in Marlborough,

Massachusetts, also was an ECM

customer and advertised on its

website that its plastic golf tees

were biodegradable. CHAMP sold

the tees both online and in brick

and mortar stores throughout

the United States. The company’s

marketing materials claimed that

the ECM additive made its prod-

ucts biodegradable.

Clear Choice Housewares, Inc.

based in Leominster, Massachu-

setts, was a customer of an addi-

tive manufacturer called Bio-Tec

Environmental. Clear Choice sold

what it claims are biodegradable,

reusable plastic food storage

containers on its website, as well

as in retail stores nationwide.

Clear Choice’s marketing materi-

als claimed its products were

biodegradable based on the

application of a Bio-Tec product

called Eco Pure. The FTC alleges

that Clear Choice made false and

unsubstantiated claims that Eco

Pure made its products “quickly

biodegradable in landfills.”

Carnie Cap, Inc., based in East

Moline, Illinois, incorporated

Eco-One, an additive manufac-

tured and marketed by Ecologic,

into its plastic rebar cap covers.

Carnie Cap advertised the caps

on its website and sold them

through various distributors

nationwide. It claimed, with no

qualification, that the Eco-One

product makes it plastic rebar

cap covers “100 % biodegrad-

able.”

The proposed consent orders

settling the FTC’s complaints are

essentially the same. They pro-

hibit the four companies from

making biodegradability claims

unless the representations are

true and supported by compe-

tent and reliable scientific

evidence. Consistent with the

Green Guides, the companies

must have evidence that the

entire plastic product will com-

pletely decompose into elements

found in nature within one year

after customary disposal

(defined as disposal in a landfill,

incinerator, or recycling facility)

before making any unqualified

biodegradable claim.

For qualified claims, the compa-

nies must state the time required

for compete biodegradation in

a landfill or the time to degrade

in a disposal environment near

where consumers who buy the

product live. Alternatively, the

companies may state the rate

and extent of degradation in a

landfill or other disposal facility

accompanied by an additional

disclosure that the stated rate

and extent do not mean that

the product will continue to

decompose.

The proposed consent orders

also make it clear that ASTM

D5511 (a test standard commonly

used in the additive industry)

cannot substantiate unqualified

biodegradable claims or claims

beyond the results and parame-

ters of the test, and that any test-

ing protocol used to substantiate

degradable claims must simulate

the conditions found in the

stated disposal environment.

AJM Packaging Corporation

manufactures paper products,

including paper plates, cups,

bowls, napkins, and bags, for

sale throughout the United

States. Based in Bloomfield Hills,

Michigan, the company touts it-

self as a “leading manufacturer

of these products,” and refers to

its lunch bags and Green Label

paper plates as national brand

leaders.

According to the FTC, through its

recent marketing practices, AJM

violated a July 19, 1994, Commis-

sion consent order that barred

it from representing that any

product or package is degrad-

able, biodegradable, or photo -

degradable unless it had

competent and reliable scientific

evidence to substantiate the


F TC CHA L L ENGES DECEP T I V E B IODEGRADAB L E C LA IMS [CONT ’D ]

THE F TC WORKSFOR CONSUMERSTO P R EVENTF RAUDU L ENT, D ECEP T I V E ANDUNFA I R BUS INESSP RACT ICES .

14


claims. The order defines the

terms “competent and reliable

scientific evidence,” as well

as what constitutes a “product

or package,” including plates

and bags.

Despite the terms of the order,

AJM began making new environ-

mental claims for a number of its

papers products, including

claims that they were “biode -

gradable,” “compostable” or

both. AJM made these claims for

some of its most popular prod-

ucts, including Nature’s Own

Green Label and Gold Label

papers plates, AJM lunch bags,

AJM grocery bags, and Bio-Save

Lawn & Leaf Bags. The packaging

for AJM’s paper plates also

prominently stated that they are

“recyclable.”

Based on this conduct, the FTC’s

complaint charges AJM with vio-

lating the 1994 order by failing

to have competent and reliable

evidence to substantiate claims

that: its products will biode-

grade within one year when dis-

posed in a landfill; its products

will compost in a safe and timely

manner in a home composting

pile; and its paper plates are

recyclable.

In settling the FTC’s current com-

plaint, AJM agrees to vacate the

prior Commission order and

enter into a new order that con-

tains new language and defini-

tions that reflect updates to the

Green Guides that were finalized

last year. Specifically, the up-

dated order bars AJM from mak-

ing unsubstantiated claims that a

product or package is biodegrad-

able, compostable, recyclable, or

offers an environmental benefit

and requires AJM to disclose

information needed to qualify

certain green claims to avoid

deception.

The court order also requires AJM

to pay a $450,000 civil penalty

for violating the 1994 order and

enjoins AJM from violating the

new order. The FTC can seek

additional penalties if AJM vio-

lates the new order in the future.

Green Marketing Consumerand Business EducationThe FTC recently released several

business and consumer educa-

tion resources designed to help

users understand its Green

Guides and environmental mar-

keting in general. These include:

1) “Environmental Claims – Sum-

mary of Green Guides,” a four-

page summary of the changes

in the Guides; 2) “The Green

Guides,” a video explaining high-

lights of the changes; 3) a new

page on the FTC Business Center,

with links to legal documents,

the Guides and other “green”

content; 4) a Business Center

blog post; and 5) related con-

sumer information.

In addition, the FTC today posted

a new blog for consumers to help

them understand the issues sur-

rounding biodegradable plastics

claims in order to make informed

purchasing decisions. The post,

“Green Claim Check,” can be

found on the FTC’s website. The

Commission also has new infor-

mation for businesses, “Grading

your degradability claims: The

latest for green marketers.”

The Commission VotesThe Commission vote to issue

the administrative complaint

against ECM Biofilms was 4-0.

The case will be heard before an

administrative law judge at the

FTC, with the proceeding sched-

uled to begin on June 18, 2014.

The Commission vote to accept

the consent agreement packages

containing the proposed consent

orders for public comment in

each of the four biodegradable

plastics cases was 4-0. The FTC

will publish a description of the

consent agreement packages in

the Federal Register shortly. The

agreements will be subject to

public comment for 30 days,

beginning today and continuing

through November 29, 2013,

after which the Commission

will decide whether to make the

proposed consent orders final.

Interested parties can submit

written comments electronically

or in paper form by following the

instructions in the “Invitation to

Comment” part of the “Supple-

mentary Information” section.

Comments in paper form should

be mailed or delivered to: Fed-

eral Trade Commission, Office of

the Secretary, Room H-11, and

600 Pennsylvania Avenue, N.W.,

Washington, DC 20580. Com-

ments also can be filed electroni-

cally: Click here to access the

links from FTC website.

The Commission vote approving

the complaint against AJM was

5-0, with former Chairman Jon

Leibowitz and former Commis-

sioner J. Thomas Rosh participat-

ing. The vote to approve the

stipulated final order was 4-0.

The complaint was referred to

the Department of Justice and

then back to the FTC. The FTC

filed the complaint and stipu-

lated order in the U.S. District

Court for the District of Columbia

on October 1, 2013.

NOTE: The Commission author-

izes the filing of a complaint

when it has “reason to believe”

that the law has been or is being

violated, and it appears to the

Commission that a proceeding

is in the public interest.

NOTE: The Commission refers

a complaint to the DOJ for filing

when it has “reason to believe”

that the law has been or is being

violated and it appears to the

Commission that a proceeding

is in the public interest. The

order has the force of law when

approved and signed by the

district court judge.

The Federal Trade Commission

works for consumers to prevent

fraudulent, deceptive, and unfair

business practices and to pro-

vide information to help spot,

stop, and avoid them. To file a

complaint in English or Spanish,

visit the FTC’s online Complaint

Assistant or call 1-877-FTC-HELP

(1-877-382-4357). The FTC enters

complaints into Consumer Sen-

tinel, a secure, online database

available to more than 2,000 civil

and criminal law enforcement

agencies in the U.S. and abroad.

The FTC’s website provides free

information on a variety of con-

sumer topics. Like the FTC on

Facebook, follow us on Twitter,

and subscribe to press releases

for the latest FTC news and

resources. •Reprinted from FTC press release,

October 29, 2013. Click here to

view the online report.

F TC CHA L L ENGES DECEP T I V E B IODEGRADAB L E C LA IMS [CONT ’D ]

http://www.ftc.gov/news-events/press-releases/2013/10/ftc-cracks-down-misleading-unsubstantiated-environmental

15


B I O D E G R A D A B I L I T Y :

FTC CRACKS DOWN ONBIODEGRADABIL ITY CLAIMSBY J E R EMY CARRO L L , P L AS T ICS NEWS

The U.S. Federal Trade Commis-

sion has taken aim at five plastics

companies, alleging they used

false or misleading claims of

biodegradability. But one of

those companies plans to fight

the charges, saying it will win in

the long run.

In an announcement of the

action, the FTC said ECM

BioFilms Inc., American Plastic

Manufacturing, CHAMP, Clear

Choice Housewares Inc. and

Carnie Cap Inc. all made claims of

their plastic being biodegradable

which were unsupported, the

agency said. All but ECM

BioFilms have agreed to a

consent agreement.

ECM BioFilms, based in

Painesville, Ohio, claims that

plastic products manufactured

with the company’s additives will

biodegrade in biologically active

environments after more than a

year. The company uses an aster-

isk on its marketing materials

when using the word “biodegrad-

able,” pointing to the fact that it

will take longer than a year for

the material to biodegrade in

landfills.

According to FTC's latest Green

Guides, a company is allowed to

market a product as biodegrad-

able without a qualifier if the

product breaks down in less than

a year. FTC does not have guide-

lines on how to market products

with a qualifier, the company

alleges.

“We believe fully that we’re going

to win in the long run,” ECM

BioFilms President Robert

Sinclair said in an interview

with Plastics News.

He said the company has inde-

pendent tests that show the

products biodegrade in atmos-

pheres that mimic landfills. A

previous notice on its products

said it would biodegrade in nine

months to five years.

“[The FTC] can’t get themselves

around it. They are going against

the science,” Sinclair said.

The FTC alleges that the company

misrepresents that plastics made

from the additives are biodegrad-

able and will completely break

down “within a reasonably short

period of time,” that the plastics

will biodegrade in a landfill and

that scientific tests prove ECM’s

claims.

The complaint says ECM should

be prohibited from making the

claims.

Two of the other companies

named by FTC, American Plastic

Manufacturing and CHAMP, are

customers of ECM. American

Plastic Manufacturing sold

plastic shopping bags that were

marketed as biodegradable and

CHAMP sold plastic golf tees

marketed as biodegradable,

FTC alleges.

Clear Choice Housewares and

Carnie Cap are facing similar

allegations. FTC said Clear Choice

Housewares was a customer of

another additive manufacturer,

Bio-Tec Environmental, and mar-

keted “biodegradable” plastic

food storage containers. Carnie

Cap used an additive manufac-

tured and marketed by Ecologic

for its plastic rebar cap covers,

which claimed was “100 percent

biodegradable,” FTC alleged.

All of the companies are not

facing a financial penalty,

but agreed to stop using the

marketing.

FTC said the action is to ensure

compliance with the agency’s

Green Guides.

“It’s no secret that consumers

want products that are environ-

mentally friendly, and that com-

panies are trying to meet that

need,” said Jessica Rich, director

of the FTC’s Bureau of Consumer

Protection, in a statement. “But

companies that don’t have evi-

dence to support the environ-

mental claims they make about

their products erode consumer

confidence and undermine those

companies that are playing by

the rules.”

FTC has scheduled a hearing for

ECM in June. •Copyright © 1995-2013 Crain

Communications Inc. All Rights

Reserved.

F TC CRACKSDOWN ON M I S L EAD INGENV I RONMENTA LMARKE T INGCLA IMS .

16


R E C Y C L I N G

RECYCLING OF HDPE BOTTLESTOPS 1 BILL ION POUNDS IN2012BY J ENN I F E R K I L L INGER , AMER ICAN CHEM I S T RY COUNC I L

Plastic bottle recycling by con-

sumers increased 161 million

pounds in 2012, edging up 6.2

percent, to reach nearly 2.8 bil-

lion pounds for the year, accord-

ing to figures released jointly

today by the Association of Post-

consumer Plastic Recyclers (APR)

and the American Chemistry

Council (ACC). The recycling rate

for all plastic bottles rose 1.6 per-

cent to 30.5 percent for the year.

The 23rd annual National Post-

Consumer Plastics Bottle Recy-

cling Report marks the twenty-

third consecutive year that Amer-

icans have increased the pounds

of plastic bottles returned for

recycling. The number of pounds

of used bottles collected in the

United States has grown each

year since the industry survey

began in 1990.

During 2012, the collection of

high-density polyethylene

(HDPE, #2) bottles—a category

that includes milk jugs and bot-

tles for household cleaners and

detergents—rose 45.3 million

pounds to top 1 billion pounds

for the first time, helping to

boost the recycling rate for HDPE

bottles from 29.9 to 31.6 percent.

“We are very encouraged by the

steady growth in plastic bottle

recycling,” said Steve Alexander,

executive director of APR. “Used

plastics are valuable materials,

and recyclers rely on all of us to

make sure these resources make

it into a recycling bin.”

“Thanks to increased consumer

access to recycling programs and

growth in single-stream collec-

tion—whereby consumers place

all recycled materials into a single

bin—plastics recycling is one of

the easiest things we can do to

benefit the planet,” added Steve

Russell, vice president of plastics

for American Chemistry Council.

“In the United States, we have

the capacity to recycle more used

plastics than we are currently

collecting, and innovative manu-

facturers are using these materi-

als in new and exciting ways.

Each of us can help by doing our

part to get more used plastics

into a recycling bin,” Russell

said.

Alexander and Russell offered

three simple tips to help con-

sumers recycle more of their

plastic bottles:

• Bring it back. If you empty a

plastic bottle on-the-go, bring it

back to a bin.

• Recycle all plastic bottles.

Today, recyclers collect all types

of plastic bottles, regardless of

the number, or resin identifica-

tion code, printed on the bottom.

• Don’t forget about caps! Recy-

clers want both caps and bottles,

so please remember to twist

caps back on bottles after use.

This year’s survey of plastic bot-

tle recycling also found that the

collection of polypropylene (PP,

#5) bottles rose to nearly 47 mil-

lion pounds, an annual increase

of 7.2 percent, with 73 percent of

that material processed domesti-

cally as PP, rather than mixed

with other resins. Domestic

processing of postconsumer PP

bottles increased 14 percent to

reach 43.5 million pounds. Al-

though PP caps and non-bottle

containers are widely collected

for recycling in the United States,

these data are released in a

separate report on recycling non-

bottle rigid plastics, which will be

released in the coming weeks.

Together, polyethylene tereph-

thalate (PET, #1) and HDPE bot-

tles continue to make up over 96

percent of the U.S. market for

plastic bottles with polypropy-

lene bottles comprising half of

the remaining 4 percent.

Exports of HDPE bottles rose 30

million pounds to 201 million

pounds in 2012, while imports of

postconsumer HDPE decreased

by 35 percent to 33.1 million

pounds, which, combined with

increased collection and exports,

resulted in slightly lower pur-

chases for U.S. reclamation

plants.

(Continued, see Rates, page 18)

THE R ECYC L INGRATE FOR A L LP L AS T IC BOT T L E SROSE 1 .6 P E R -CENT TO 30 .5P E RCENT FORTHE Y EAR .

17


R E C Y C L I N G

BEVERAGE CONTAINER RECYCLINGSTRUGGLES TO GAIN GROUNDBY BOBBY E L L IO T T, R E SOURCE R ECYC L ING

A new study on beverage con-

tainer recycling in the U.S. indi-

cates sales of beverage containers

continued to ascend between

2000 and 2010, but recycling rates

barely budged during the decade.

The solution? A national deposit

program, says the Container Recy-

cling Institute (CRI), which pre-

pared the report and cited the

effectiveness of 11 statewide

programs (this includes Delaware,

which no longer has a redemption

program, but did in 2010) in aiding

otherwise disappointing recycling

figures.

Released late last week, “Bottled

Up: Beverage Container Recycling

Stagnates (2000 – 2010)” states

that in 2010 our “national wasting

rate” reached 63.1 percent.

According to the study, approxi-

mately 153 billion of the 243

billion beverage containers sold

during the year were either “land-

filled, littered or incinerated.”

Accordingly, the recycling rate in

2010 was 36.9 percent, up from

2000’s rate of roughly 33 percent.

Those figures represent both

traditional and non-traditional

containers. Non-traditional

containers are defined by CRI

as including gable-top cartons,

aseptic drink boxes and foil

pouches. Traditional containers

include refillable and one-way

glass bottles, PET and HDPE

plastic bottles and steel and

aluminum cans.

The recycling rate of traditional

containers was 39.6 percent in

2010, increasing less than one per-

centage point from the 2000 rate.

While a CRI press release infers

that, between 2000 and 2010,

“the rate at which we recycled the

empty containers declined,” it is

worth noting that the national

recycling rate declined only when

compared with recycling rates dur-

ing the 1990s. During that decade,

container recycling rates were con-

sistently higher than current levels

and hit an all-time high of roughly

54 percent in 1992. Between 2000

and 2010, recycling rates, though

leaving much to be desired, in-

creased incrementally.

As the study points out, relatively

unchanged recycling behavior

over the period coincided, some-

what paradoxically, with increased

access to curbside recycling pro-

grams championed by the bever-

age industry and a vigorous

nationwide campaign to increase

recycling awareness. Recycling

rates for the containers, after inch-

ing above the 50 percent mark in

the early 1990s, dropped between

1995 and 2004, while a period of

slight growth occurred between

2005 and 2010.

According to the report, several

obstacles have stood in the way

of increasing recycling sufficiently,

including a major industry switch

from aluminum cans to PET con-

tainers, which have a significantly

lower recycling rate. The study

also points to the rise of out-of-

home consumption and the lack

of substantial legislation as major

hindrances to upping recycling

activity.

“Recycling rates have stagnated in

large part due to a dramatic in-

crease in consumption of these

beverages, especially at busi-

nesses and in public spaces where

recycling bins are scarce,” CRI

president Susan Collins said in the

press release. “Another key factor

in the decline in recycling rates is

the unwillingness of state legisla-

tures to enact effective recycling

policies, especially new or ex-

panded container deposit laws.”

On an economic level, the scrap

value of beverage containers

entering the waste stream in 2010

was an estimated $3.8 billion. Just

$1.6 billion worth of the material

was recycled – about 42.1 percent

of the possible value of the scrap

material.

Sales of traditional bottles and

cans grew by 22 percent between

2000 and 2010 “partly due to U.S.

population growth of 9.6 percent

during the period,” the study

states. Americans consumed a

whopping 784 beverage contain-

ers per person in 2010, easily

surpassing 2000's average of 629

beverage containers per capita.

Sales of plastic bottles led the

charge, with sales of those

(Continued, see Bottle, page 18)

DUR ING THE’90S CONTA INERR ECYC L INGRATES WERECONS I S T ENT LYH IGHER THANCURRENT L E V E L S .

18


BOTT L E R ECYC L ING [CONT ’D ]

products increasing from 8.4

billion units sold in 2000 to 42.6

billion in 2010.

According to the study, container

recycling during the decade did

see a positive impact from the 11

deposit programs in place by the

end of 2010. Those programs

reported recycling rates for con-

tainers covered under law of 66

to 96 percent, outperforming the

rest of the country’s rate (roughly

30 percent). In addition, deposit

program states accounted for 46

percent of all recycling in 2010,

despite accounting for just 28

percent of the U.S. population.

Arguing that “beverage container

recycling must dramatically in-

crease across the country,” the

study proposes a national deposit

program modeled after the

statewide programs. The study

notes that “if a very modest 5-cent

deposit were placed on all carbon-

ated and non-carbonated bever-

ages throughout the U.S., a 75

percent recycling rate would be

achieved across the board.”

“Several states are interested in

introducing legislation for a con-

tainer deposit system,” Collins

told Resource Recycling. “Of

course, a national container

deposit system would have supe-

rior environmental benefits, and

would also create a more uniform

system for consumers.” •Reprinted from www.resource-re-

cycling.com, November 7, 2013.

The full 2021 report National

Post-Consumer Plastics Bottle

Recycling Report is available on

the “Reports and Publications”

section of ACC’s website

(www.americanchemistry.com)

and on APR’s website

(www.plasticsrecycling.org).

Data on PET recycling referenced

in the report were separately

funded and published by APR

and the National Association for

PET Container Resources (NAP-

COR). A separate report, entitled

2012 Report on Post-Consumer

PET Container Recycling Activity,

is available on APR’s website.

The survey of reclaimers in the

study was conducted by Moore

Recycling Associates, Inc.

Resources for municipal

recyclers are available at:

www.allplasticbottles.org and

www.recycleyourplastics.org. •Reprinted with permission.

R ECYC L ING RAT ES [CONT ’D ]

CALRECYCLE F ILM RECYCLINGThe California agency in charge

of overseeing a state law requir-

ing retailers to collect plastic

bags and film for recycling says

it has no funds to properly track

the impact of the law.

Despite the abundance of raw

data available to the agency, Cal-

Recycle has not been able to an-

alyze the information since

2009, when the recycling rate of

plastics bags reached 3 percent.

“Work on the program at this

point consists of a few weeks of

data entry by entry-level staffers

when the reports come in during

the spring,” CalRecycle

spokesman Mark Oldfield told

the Associated Press.

Last year lawmakers renewed

the program through 2020, but

did not provide Oldfield’s team

with additional funding to help

with data analysis.

Each year retailers in the state

are required to provide CalRecy-

cle with data, including how

many pounds of plastics bags

were purchased during the year

and how many pounds of bags

were returned for recycling.

According to information

obtained by the AP, California

retailers purchased 62.3 million

pounds of bags in 2012, down

from 107.4 million pounds in

2008. In addition, a total of 4

million pounds of bags and 27

million pounds of mixed bags

and plastic film were reportedly

returned for recycling in 2012.

Without proper follow-up on the

data, however, a 2012 recycling

rate for plastic bags cannot be

generated, leaving the state with

little sense of whether the ex-

tended program is working.

Even without recycling rates,

Mark Murray, executive director

of Californians Against Waste,

told the AP there wasn’t much

reason to believe plastic bag

recycling had increased signifi-

cantly. “I’m not sure having state

bean-counters counting recy-

cling that’s not happening is all

that useful,” he said.

As local bag bans have gained

steam throughout the state, a

potential statewide ban on plas-

tic bags could be taken up as a

viable alternative to the current

program, which does not require

state retailers to charge con-

sumers for plastic bags.

In August, CalRecycle forecasted

that its beverage counter recy-

cling program, hampered by out-

of-state fraud and high recycling

rates, would be insolvent by

March 2015. •Reprinted from www.resource-

recycling.com, November 1,

2013.

19


CALRECYCLE GRAPPLES WITH CASHSHORTFALLThe beverage container recycling

program in America’s most pop-

ulous state is running an operat-

ing deficit of about $100 million,

and state officials are looking

at a number of ways to balance

the books.

CalRecycle is undertaking a wide

range of regulatory and pro-

grammatic changes to address

the deficit, reports Jose Ortiz,

the agency’s deputy director. For

one, the agency eliminated the

payment system for commingled

loads of materials delivered to

redemption centers. Also, as a

result of a variety of enforcement

efforts, the volume of containers

coming into California by truck

from out of state has dropped

dramatically, CalRecycle says.

However, the agency says it is

looking into other fraud avenues

—the possibility of containers

being railroaded into the state,

for instance, or coming via rural

side roads. According to some

estimates, eliminating program

fraud would balance the

agency’s books.

Tentative projections suggest

CalRecycle will likely run out of

cash in 2015. If that occurs, state

officials will reduce programs.

One idea is to have all programs

take a proportional reduction,

while another plan calls for

specific programs to be targeted

for budget cutbacks. “It’s hard

to make these decisions,” says

Ortiz. “It’s a bit of a Rubik’s

Cube.” •Reprinted from www.resource-

recycling.com, November 7,

2013.

http://www.ngr-usa.com/

20


R E C Y C L I N G

‘T IS THE SEASON FOR HOLIDAYWASTE REDUCTION TIPSBY ME L INDA BE E R , CA L R ECYC L E

It’s the most wonderful time of

the year, but the weeks between

Thanksgiving and New Year’s Day

are notorious for high volumes of

waste. More than 1 million tons

of additional waste is generated

each week nationwide during

this period.

“There are many festive ways to

reduce, reuse, and recycle during

the holiday season without cutting

back on the good cheer,” CalRecy-

cle Director Caroll Mortensen said.

“CalRecycle proposes some new

traditions to reduce holiday waste

that will help protect the planet

and save money, while teaching

our kids about environmental

stewardship.”

If you dream of a green Christmas,

celebrate using the following tips:

• Precycle and freecycle before

you hit the mall. Take an inventory

of things you no longer use, and

donate those old toys and clothing

to a thrift store. Even if the clothes

can no longer be worn, thrift

stores will generally sell them to

textile recyclers. Only got $20 in

your pocket? A thrift shop is also a

great place to find fantastic and

unique Christmas gifts on the

cheap. Frugal shopper Max Wong

provides some great gift ideas.

• Remember to bring reusable

bags on your shopping trips.

• Consider gift bags or baskets,

which can be used year after year,

or a reusable bag instead of wrap-

ping paper. Feeling crafty?

Earth911 has 11 clever, creative,

and cheap ideas to make your

gifts shine.

• Rechargeable batteries are truly

a gift that keeps on giving to run

those holiday toys and gadgets.

They greatly reduce the amount of

hazardous waste that harms the

environment when thrown away,

which is not only naughty, but

illegal. Visit CalRecycle for more

information, including how to

safely dispose of batteries.

• If Santa deemed you nice and

you scored a new flat-screen,

tablet, smart phone, or other

electronic gadget, make sure to

responsibly e-cycle your old tech-

nology. Many nonprofits will

accept working cell phones and

computers. If they don’t work, be

sure to dispose of them safely,

and remember it is illegal to throw

them in the trash due to the toxic

materials they contain. Check out

eRecycle.org for reuse and recy-

cling drop-off locations for cell

phones, e-waste, and batteries.

• Rather than mailing paper

holiday cards, consider sending

e-cards or an e-newsletter. CalRe-

cycle really likes the social options

that Mashable offers in its “four

ways to replace Christmas cards

with social media.”

• Food for thought: Thirteen per-

cent of landfill waste is food and

an estimated 36 million tons of

food waste went to U.S. landfills

in 2011. Err on the side of Scrooge

when crafting your menus—it’s

good for the waist, and preventing

waste. Also, remember that food

scraps can go into green waste

bins and will be composted or

transformed into energy sources

instead of ending up in landfills,

creating methane and carbon

dioxide gases.

• Remember to treecycle! Christ-

mas trees are commonly turned

into mulch, or chipped and used

for playground material, hiking

trails, paths, and walkways. They

can also be used for beachfront

erosion prevention, lake and river

shoreline stabilization, and fish

and wildlife habitat. Ask your local

Christmas tree grower about

programs near you, check out

CalRecycle’s page, or visit Earth

911 for additional information on

Christmas tree recycling programs.

• Make your New Year’s resolution

to practice the “three Rs” every

day: Reduce, reuse, and recycle!

For more ideas, please see CalRe-

cycle’s Holiday Waste Reduction

page. •Reprinted from Cal Recycle press

release: www.calrecycle. ca.gov,

December 10, 2013.

THER E A R E MANYFES T I V E WAYS TOREDUCE , R EUSEAND R ECYC L EDUR ING THEHOL IDAYS .

http://earth911.com/art-entertainment/buy-or-diy-eco-friendly-gift-wrap/

http://mashable.com/2013/11/20/christmas-cards-social-media/

21


R E C Y C L I N G

WPA MEMBER OFFERED REDUCEDPRICE ON RECYCLING REPORTBY P LAS T ICS NEWS

A new analysis of the North

American plastics recycling

market by Plastics News can help

guide business decisions in 2014.

The report, titled “Plastic Recy-

cling Market Review and Outlook

2014 – North America – Post-

Consumer and Post-Industrial,”

offers an in-depth analysis of the

plastics recycling market for

North America, including discus-

sions of market conditions,

opportunities, threats and strate-

gies implemented by leading

post-consumer and post-indus-

trial material recyclers.

The report uses charts and

graphs to provide insight into key

market indicators, including:

• Resin pricing trends over five

years for both virgin and recycled

material.

• Resin production trends over

five years for post-consumer and

post-industrial waste.

• The impact of crude oil prices

on recycled resin.

• Recycled rates for U.S., Europe,

Latin America and Asia.

The 43-page report, in easy-to-

use PDF format, reviews 26 lead-

ing recyclers and 15 equipment

manufacturers, assessing their

business strategies, challenges

and production outlook.

Experts also provide perspectives

from industry thought leaders

regarding their views on industry

trends, supply and demand out-

look and global growth initia-

tives. These Q&A interviews

include:

• Dr. Mike Biddle, founder and

president, MBA Polymers Inc.

• Scott Mouw, director, North

Carolina Division of Environmen-

tal Assistance and Outreach

• Doug Ritchie, owner, Star

Plastics

The report contains information

on companies that prospered in

2013 as well as some that were

not so successful.

There is also an update on

changes to the chasing arrows

recycling symbol that some

believe will cost them money

when molds have to be changed.

Plastics recycling markets are

complex and this report can help

leaders understand the trends

and make the best decisions for

their businesses.

The report regularly sells for

$499, but Western Plastics Asso-

ciation members can take advan-

tage of a discounted price of

$349 by ordering through this

special URL available only to WPA

members: www.plasticsnews.

com/recyclingreport-wpa.

Need more details about the

report? Visit www.plasticsnews.

com/section/store. •

WPA MEMBERSCAN TAKE ADVANTAGE OFA D I SCOUNTEDPR ICE OF $ 349 .

http://www.plasticsnews.com/recyclingreport-wpa

http://www.plasticsnews.com/section/store

22


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23


http://www.erema.net/

24


S U S TA I N A B I L I T Y :

SC JOHNSON RELEASES 2013SUSTAINABIL ITY REPORT, HIGHLIGHTS PROGRESS ON ENVIRONMENTAL IMPACT BY SC JOHNSON

SC Johnson released its 2013

annual public sustainability

report today. The report shares

the latest information on the

company’s ongoing work to

achieve its 2016 environmental

goals by using more renewable

energy, cutting greenhouse gas

emissions, minimizing landfill

waste and developing innovative

products that use fewer resources

and require less packaging. SC

Johnson has reduced its global

manufacturing waste by 62 per-

cent and increased its use of re-

newable energy to 30 percent in

pursuit of these goals*.

“This report showcases our com-

mitment to sustainable develop-

ment and to serving the greater

good,” said Fisk Johnson, Chair-

man and CEO of SC Johnson. “As

a family company that has been

around for 127 years, we have

always believed that we have

both an opportunity and an obli-

gation to better the communities

in which we operate. We are con-

stantly challenging ourselves to

find ways to reduce our environ-

mental footprint while continuing

to produce the high-quality prod-

ucts that consumers expect and

deserve.”

SC Johnson’s commitment to

sustainability is shared across all

divisions of the company—it is

focused on making a positive

impact at every stage of product

development. This starts with

responsible supply chain decisions

and continues long after the

purchase date since many of its

products feature recyclable pack-

aging. The company’s investment

in helping consumers make

green choices through continu-

ous education and authentic

engagement brings this commit-

ment full circle.

Sustainability Initiatives Show-

case Commitment to People,

Planet and Products

Starting with its supply chain, SC

Johnson renewed its investment

in 2013 with the U.S. Agency for

International Development

(USAID) and the Norman Borlaug

Institute for International Agricul-

ture at Texas A&M University.

Together, SC Johnson and its

partners hope to strengthen and

expand the capacity of local

farming cooperative organiza-

tions in Rwanda and to further

increase production and quality

of the pyrethrum (py) they farm—

a natural insecticide used in well-

known products such as Raid®

and Baygon®.

Through Green Choices and

@GreenChoices—SC Johnson’s

website and Twitter account that

provide eco-friendly tips and

resources—the company engages

with consumers on how to

increase sustainable behaviors

such as recycling and saving

energy. SC Johnson launched

several products on the Green

Choices Marketplace this past

year that offer consumers easy

ways to reduce their environmen-

tal impact. Products include the

Smart Twist® cleaning system,

a refillable system for concen-

trated cleaners, and Ziploc®

Brand Compostable Bags for

use in commercial composting

programs.

SC Johnson recognizes the impor-

tant role that companies play

both individually and with indus-

try partners in advancing sustain-

able development. The company

sponsored the Regeneration

Roadmap, an initiative by Globe -

Scan and SustainAbility, to create

an integrated and comprehensive

plan for sustainable develop-

ment for the next generation.

The Roadmap focuses on the

ways that the private sector can

improve its overall sustainability

strategy, increase its credibility

and deliver results at greater

speed and scale.

In its efforts to serve the greater

good, the company invests in

disease prevention programs in

Southeast Asia and Africa and

(Continued, see page 25 )

FOR MORE THAN20 YEARS , SCJOHNSON HASSE T F I V E - Y EARGOALS TOGU IDE I T S A P P ROACH TOSUSTA INAB I L I T Y.

25


provides ongoing support to

local residents. In 2012/2013, SC

Johnson launched a comprehen-

sive campaign in Kuala Lumpur,

Malaysia, that included a Face-

book alert campaign, an educa-

tion competition for 100 schools

and a community dialogue with

expert panelists. The company

was able to reach thousands of

families and leveraged influential

media outlets to amplify the

dengue prevention dialogue. SC

Johnson also collaborates with

the Bill & Melinda Gates Founda-

tion in the fight against malaria.

SC Johnson continues to make

life better for communities

around the world through its

many philanthropic contribu-

tions. It has donated $3 million

in product donations to those in

need, including victims of Hurri-

cane Sandy. The company is also

committed to expanding the arts,

and it pledged $5 million to the

Smithsonian’s National Museum

of American History in Washing-

ton, D.C. to assist in the develop-

ment of the “American Enter prise”

exhibition as well as a state-of-

the-art conference center. The

center will serve as a venue for

educational outreach.

2013 SC Johnson Sustainability

Report Highlights

For more than 20 years, SC

Johnson has set five-year goals

to guide its approach to sustain-

ability, and it shares progress

and results on a regular basis.

Highlights include:

Smaller Footprint: SC Johnson

has invested in 10 major renew-

able energy initiatives around the

world over the last decade. With

the installation of two new 415-

foot-tall wind turbines at its

largest global manufacturing

facility, the company cuts 6,000

metric tons of greenhouse gas

emissions annually.

Less Waste: SC Johnson has recy-

cled roughly 8.5 million pounds

of waste at its largest global

manufacturing facility in Mt.

Pleasant, Wis., and seven SC

Johnson sites are now zero

landfill**.

Better Lives: For years, SC John-

son has educated Filipinos about

fighting dengue with its Baygon®

and OFF! ® products. Through its

work, the company has reached

1.65 million households, visited

more than 4,000 communities

and conducted more than 1,500

dengue educational caravans

in the Philippines.

Winning Products: SC Johnson’s

newest concentrated cleaners—

also available on the Green

Choices Marketplace—feature a

63 percent reduction in plastic

compared to a standard spray

bottle. The company has also

saved 900,000 pounds of resin

globally by using new Mr

Muscle® bottles.

To minimize waste, SC Johnson

encourages readers to view the

2013 sustainability report at

www.scjohnson.com/report. •*Global waste reduction is meas-

ured against a 2000 baseline,

and renewable energy is meas-

ured against a 2011 baseline.

**SC Johnson defines zero land-

fill as elimination of materials

sent to landfill through reuse and

recycling and, ultimately, without

the use of incineration.

ENV I RONMENTA L IMPACT [CONT ’D ]

http://www.scjohnson.com/en/commitment/report.aspx

26


S U S TA I N A B I L I T Y :

THE COCA-COLA COMPANY ANDFORD UNVEIL FORD FUSION ENERGI WITH PLANTBOTTLETECHNOLOGY INTERIOR • PlantBottle Technology™ from

The Coca-Cola Company is

applied for the first time beyond

PET packaging as part of the

interior fabric of a Ford Fusion

Energi plug-in hybrid research

vehicle

• The Fusion Energi research

vehicle uses PlantBottle

Technology for seat cushions,

seat backs, head restraints, door

panel inserts and headliners

• Fabric made from PlantBottle

Technology consists of up to 30

percent plant-based materials,

showing the broad potential of

two global consumer icons to

leverage renewable materials to

help replace petroleum and other

fossil fuels used for traditional

PET fabric

The Coca-Cola Company and Ford

Motor Company are fueling more

sustainable design by collaborat-

ing on a first-ever interior fabric

made from the same renewable

material used to produce Coca-

Cola’s PlantBottle Technology™

packaging.

The two companies today

unveiled a Ford Fusion Energi

plug-in hybrid vehicle with Coca-

Cola PlantBottle Technology

interior fabric surfaces covering

seat cushions, seat backs, head

restraints, door panel inserts and

headliners. The research vehicle

marks the first time PlantBottle

Technology is applied beyond

packaging, and affirms a joint

commitment by two global

consumer icons to develop inno-

vative new products produced

from renewable materials.

“By using PlantBottle Technology

in a plug-in hybrid, Ford and

Coca-Cola are showing the broad

potential to leverage renewable

materials that help replace petro-

leum and other fossil fuels, re-

ducing the overall environmental

impact of future vehicles,” said

John Viera, global director of

sustainability and vehicle

environmental matters at Ford.

The collaboration also demon-

strates the positive influence

that comes from combining two

of the most recognizable and

respected brands in the world.

The Cola-Cola Company and Ford

Motor Company together reach

billions of consumers in more

than 200 countries on six

continents.

The Ford Fusion Energi research

vehicle will be on display later

this month at the Los Angeles

Auto Show.

The idea behind the vehicle was

launched last year when Ford

and Coca-Cola research teams

came together to explore innova-

tion opportunities in more

sustainable products. Both

companies use PET, a durable,

lightweight plastic also known

as polyethylene terephthalate, in

a variety of products including

plastic bottles, fabrics and car-

pets. This provided a natural

opportunity to bring together

both recyclable and renewable

technologies.

Since The Coca-Cola Company in-

troduced PlantBottle Technology

to the market in 2009 as the first-

ever recyclable PET plastic bottle

made partially from plants, more

than 18 billion PlantBottle pack-

ages have been distributed in 28

countries resulting in more than

400,000 barrels of oil saved. If

PlantBottle interior fabrics were

migrated across the majority of

U.S. Ford models, it would dis-

place nearly 4 million pounds of

petroleum-derived materials, as

well as save the equivalent of

295,000 gallons of gasoline and

6,000 barrels of oil.

“This collaboration with Ford

demonstrates that PlantBottle

Technology can be applied any-

where PET plastic is traditionally

used, but with a lighter footprint

on the planet,” said Scott Vitters,

general manager, PlantBottle

packaging platform, The Coca-

Cola Company. “We are pleased

to share this technology with


FORD MOTORCOMPANY ANDCOCA -COLACOMPANY AREFUE L ING MORESUSTA INAB L E DES IGN.

27


Ford, and look forward to contin-

uing to expand the application of

PlantBottle Technology.”

The PlantBottle-Fusion Energi

initiative is also encouraged by

the World Wildlife Fund, which

advises companies to look for

alternatives to fossil fuels.

“The Coca-Cola Company and

Ford Motor Company partnership

is a great example of how collab-

orations can help scale up posi-

tive changes to benefit the

environment,” said Erin Simon,

manager, business and industry,

packaging and material science,

World Wildlife Fund. “This atypi-

cal partnership is a great model

for other businesses to follow,

and can have a measurable

impact on critical environmental

issues.”

Building upon the success of

PlantBottle Technology, Ford has

been able to produce the first-

ever fiber that can be woven into

durable, automotive-grade PET

fabric from PlantBottle material.

Fusion Energi, a plug-in hybrid

version of Ford’s global midsize

car, was determined to be the

perfect vehicle on which to test

out the material.

Fusion Energi is Ford’s most fuel-

efficient sedan. It boasts an EPA-

rated total range of up to 620

miles and can drive up to 21

miles in electric-only mode—

which could help save customers

an estimated $6,850 in fuel costs

compared with an average new

car over the course of five years.

It offers the latest generation of

SmartGauge® with EcoGuide,

designed to monitor and influ-

ence driving behavior to improve

vehicle efficiency and help drivers

get the most from their car.

PlantBottle Technology material

integration builds on the current

2014 Ford Fusion’s environmental

innovations—innovations that

showcase a variety of more

sustainable materials throughout

the car, including:

• Sound-absorbing denim mate-

rial equivalent to more than two

average-sized pairs of blue jeans

in the car’s carpet liner

• Material equivalent to 38.9

clear-plastic 16-ounce recycled

bottles in select cloth-seat

Fusion models

• About 31,250 soybeans in the

foam found in Fusion seat cush-

ions. Today, Ford uses soy foam

in every vehicle built in North

America. Since its first applica-

tion in 2007, the use of soy foam

by Ford has reduced petroleum

production by more than 5 mil-

lion pounds and carbon dioxide

emissions by 20 million pounds

annually. •

SUS TA INAB L E DES IGN COL LABORAT ION [CONT ’D ]

TH I S ATY P ICA LPARTNERSH I P I SA GREAT MODE LFOR OTHER BUS INESSES TO FO L LOW.

28


http://whcorp.com/

29


L E G I S L AT I V E I S S U E S :

“BIODEGRADABLE” LABELING IN CALIFORNIABY CA L I FORN IANS AGA INST WASTE

As BPI members know, California

state law (Senate Bill 567, Public

Resources Code Sections 42355-

42358) limits “compostable”

claims to products that are BPI

certified or products which meet

ASTM D6400/D6868 Standard

Specifications. The same law pro-

hibits the term “biodegradable”

on plastic products and their

associated marketing material,

regardless of whether or not they

have BPI certification or meet

ASTM D6400/D6868.

It’s important to distinguish

between the two popular market-

ing terms—“biodegradable” and

“compostable.” “Compostable”

claims can be verified by ASTM

standard specifications that are

tied to pass-fail standards. Other

ASTM standards exist but are

Guidance documents or Test

Methods rather than Standard

Specifications, and provide no

pass/fail criteria. As an example,

ASTM D5511 is frequently refer-

enced on products and/or mar-

keting material. ASTM D5511 is

a Test Method for determining

anaerobic biodegradation of

plastic materials under high-

solids Anaerobic Digestion condi-

tions. This tells one how to run

the test but not anything else.

Through SB 567, the California

state legislature has ruled that

“biodegradable” claims are

inherently misleading—if given

enough time essentially every-

thing will break down. The term

“biodegradable” on its own is

vague and can be seen as disin-

genuous as it includes no param-

eters, particularly if there is no

reference to a timeframe or con-

ditions/environment (compost,

marine, soil). An ACC-funded

study by the APCO Insights

research firm indicated that con-

sumers believe “biodegradable”

to mean something will harm-

lessly and fully degrade in any

environment within 12 months.

Thus the Federal Trade Commis-

sion recently revised its Green

Guidelines (US Code Regula-

tions, Section 260.8 (c)) to state:

It is deceptive to make an un-

qualified degradable claim for

items entering the solid waste

stream if the items do not com-

pletely decompose within one

year after customary disposal.

Unqualified degradable claims

for items that are customarily

disposed in landfills, incinera-

tors, and recycling facilities are

deceptive because these loca-

tions do not present conditions

in which complete decomposi-

tion will occur within one year.

California’s plastics environmen-

tal labeling law protects con-

sumers from false end-of-life

claims in the market, while also

helping keep contaminants out

of the recycling and compost

streams. Californians Against

Waste (CAW) sponsored the

state’s labeling law and is help-

ing with its enforcement.

In 2011, and using CAW’s infor-

mation, the state Attorney General

sued three companies, Enso,

Aquamantra, and Balanced Water

for false biodegradability and

recyclability claims. By early

2013, all three parties had

reached settlements with the

Attorney General’s office by pay-

ing fines and agreeing to remove

wrongfully labeled products.

They also agreed to provide

notices of the lawsuit to cus-

tomers, with Balance stating

that it “is not able to substantiate

its claims that the bottles…are

biodegradable.” Aquamantra and

Balance are no longer producing

water bottles from Enso resin, an

additive-based plastic manufac-

turer. In this case, the enforce-

ment efforts originated from the

office of the state Attorney Gen-

eral, but enforcement of the

labeling law can also come from

local District Attorneys (DAs) in

California.

As a reminder, even products

which have BPI certification or

meet ASTM D6400/D6868 are

subject to this law. You can

reduce your chances of being

sued by the CA Attorney

General’s office or local DAs

by omitting claims of biodegrad-

ability on your products and

marketing material. •Reprinted from BPI/CAW press

release.

THE CA L I FORN IAL EG I S LATURE HAS RU L ED‘ B IODEGRADAB L E ’C LA IMS ARE INHERENT LY M IS L EAD ING.

30



CALIFORNIA SALES TAX EXEMPTION UPDATEBY DOROTHY ROTHROCK , CA L I FORN IA MANUFACTURE RSAND T ECHNOLOGY ASSOC IAT ION

The second discussion paper on

the proposed sales and use tax

exemption (STE) regulation has

been released by the California

Board of Equalization (BOE).

Click here for the analysis and

other general information.

The purpose of this regulation is

to implement and explain the

new STE created by AB 93 (Stats.

2013, Ch. 69) and SB 90 (Stats.

2013, Ch. 70), which provides for

a partial exemption from sales

and use tax on certain manufac-

turing and research & develop-

ment equipment sales and

purchases. The partial exemption

applies to qualifying sales and

purchases made on or after July

1, 2014 and before July 1, 2022

up to $200 million a year per

company.

BOE staff recommendations for

this second draft include the

following:

• Expand the definitions provided

in RTC section 6377.1 to include,

where appropriate, definitions

from Sales and Use Tax Regula-

tion 1525.2, Manufacturing

Equipment, and Franchise and

Income Tax Regulations 17053.49

et seq. regarding the Manufactur-

ers’ Investment Credit (MIC).

• Define “primarily engaged” to

mean 50 percent or more of

gross revenues are derived from

qualifying manufacturing or

research and development

activities in the preceding finan-

cial year.

• Clarify that sales and purchases

of quality assurance testing

equipment and manufacturing

aids may qualify for the partial

exemption.

• Allow for the issuance of a

blanket partial exemption

certificate.

• Provide a separate partial

exemption certificate for con-

struction contractors to provide

to suppliers.

• Clarify that the $200 million

cap is not pro-rated for the

period July 1, 2014 to December

31, 2014, or for the period Janu-

ary 1, 2022 to June 30, 2022.

BOE staff will present a final ver-

sion of the regulation to the BOE

Business Taxes Committee on

April 22, 2014. In preparation,

they continue to meet with

“interested parties” to discuss

needed changes to or suggestions

for the regulation. The comment

period for this second draft ends

Thursday, December 19th. Any

manufacturer that has concerns

with the proposed language

should share their thoughts

with the BOE staff.

CMTA remains fully engaged

as an interested party in this

process and is taking the lead

on behalf of manufacturers

statewide.

GO-Biz workshops on CACompetes Tax CreditLast July, the Governor’s package

for economic development was

passed during budget negotia-

tions that established not only

the sales tax exemption for

manufacturing equipment and a

hiring credit, but also the “Cali-

fornia Competes Tax Credit,” The

CA Competes Credit is an income

tax credit available to businesses

that want to expand, relocate or

stay and grow in California.

The California Manufacturers &

Technology Association worked

closely with Go-Biz (one of

CMTA’s manufacturing champi-

ons) and the legislature to enact

this package to make California

more competitive for new manu-

facturing growth.


CMTA I S TAK INGTHE L EAD ON BEHA L F OF MANUFACTURE RSS TAT EW IDE .

http://www.boe.ca.gov/meetings/pdf/1525-4SDPweb.pdf

31


The Governor’s Office of Business

and Economic Development (GO-

Biz) will negotiate agreements

for the credit with approval

coming from a newly created

“California Competes Tax Credit

Committee,” consisting of the

State Treasurer, the Director

of the Department of Finance,

the Director of GO-Biz, one

appointee from the Senate,

and one appointee from the

Assembly.

The tentative amount of credits

that can be allocated by GO-Biz

in fiscal year 2013-2014 is $30

million. In 2014-15 this jumps to

$150 million and in 2015-16

through 2017/18 it is $200

million in each fiscal year.

GO-Biz anticipates beginning to

accept applications during the

first quarter of 2014. In prepara-

tion, they will hold public work-

shops to provide an overview

of the enacting legislation to

discuss the draft regulations

and receive feedback from the

community.

About CMTA:

The California Manufacturers &

Technology Association (formerly

the California Manufacturers

Association) works to improve

and enhance a strong business

climate for California’s 30,000

manufacturing, processing and

technology based companies.

Since 1918, CMTA has worked

with state government to develop

balanced laws, effective regula-

tions and sound public policies

to stimulate economic growth

and create new jobs while safe-

guarding the state's environmen-

tal resources. CMTA represents

600 businesses from the entire

manufacturing community—an

economic sector that generates

more than $200 billion every

year and employs more than 1.2

million Californians. •Reprinted with permission.

SA L ES TAX U PDATE [CONT ’D ]

GO -B I Z W I L LHOLD PUB L ICWORKSHOPS TO P ROV IDE ANOVERV I EW OFTHE ENACT INGLEG I S LAT ION.

SAVE THE DATE: SOCAL MEETING

MARCH 18—NORWALK DOUBLETREEENERGY: what you need to know about new prices, increased efficiencies, and global warming

32


Laurie Hansen, Executive and Legislative Director forWestern Plastics Association

THE NEX T L EG I S LAT I V E S ESS ION WI L LB EG IN ON J ANUARY 6 .


CALIFORNIA LEGISLATURE WILLBE BACK IN SESSIONBY LAUR I E HANSEN , WPA L EG I S LAT I V E D I R ECTOR

The annual session of the Califor-

nia Legislature will begin January

6, 2014 and all bills that didn’t

make it through the process in

2013 could be up for considera-

tion in early January. This in-

cludes several bills that would

affect WPA member companies.

For example, SB 405 by Senator

Alex Padilla would ban plastic

carryout bags, and require a fee

on paper carryout bags. This bill

failed to pass the Senate floor

last year, and is eligible for

“reconsideration.” This means

the bill can be brought up on the

Senate floor, reconsideration can

be granted, and the bill in its

current form can be voted out of

the Senate. Then the bill would

go over to the Assembly and

continue through the legislative

process. We don’t know at this

time what the outcome will be,

but Senator Padilla has until the

end of January to bring this bill

up on the Senate floor for recon-

sideration.

Other bills of extreme interest

include EPR (Extended Producer

Responsibility) legislation deal-

ing with plastics and marine

debris, AB 521 by Assemblyman

Mark Stone. This topic has been

heard in several interim hearings

that Stone has convened during

the legislative recess.

In addition, SB 529 by Senator

Mark Leno, which would require

that all fast food packaging and

bags be either recyclable or

compostable, will also be back

for consideration.

With the Legislature continuing

to focus energy on issues dealing

with plastics, we also expect

many new bills that will be intro-

duced and considered between

now and next September, when

the Legislature again adjourns

for the year.

WPA will update you on existing

bills and new bills as they are

introduced during 2014. See WPA

Bill Watch List for the bills that

“carry over” to 2014, page 33. •

2013 END OF SESSION BILL S IGNINGThe following story was taken

from the Sacramento Bee back

in October when Governor Jerry

Brown was in the process of

signing bills that the Legislature

passed during 2013. It offers

an interesting perspective and

insight into California’s Governor

and the way he addresses public

policy. [Click here for the full

story.]

From Sacramento Bee: Gov.

Jerry Brown was reviewing bills

in the courtyard outside his

Capitol office one day this

month when, during a break, he

lamented the time required by

“these damn bills” and sug-

gested his inclination to sign

many more of them was waning.

The economy, global warming

and water and high-speed rail

infrastructure all demanded his

attention, he said.

“Those are all big issues,” Brown

said, “and then on top of that

you have the endless desire of

the Legislature for more and

more activities or interventions

or spending or law.”

As Brown looked over to a table

where a stack of bills and his

advisers were waiting, he remarked

on the Legislature’s “pent-up

desire” and said, “Going forward,

there could be more ‘No’s.’”

In the following days the Demo-

cratic governor would veto legis-

lation to ban the sale of certain

semi-automatic weapons and to

make some drug crimes “wob-

blers.” He vetoed 12 bills on

Saturday, including a measure to

extend the statute of limitations

for some sex abuse victims, and

on Sunday he vetoed 18 more.

But for all his complaints about

the deluge of legislation, by the

time Brown finished acting on

this year’s legislation, he had

accommodated the Democratic-

controlled Legislature on all but

about 11 percent of the bills it

sent him.

The final count for the year,

according to the Governor’s

office: 800 regular session bills

signed, 96 rejected.

Over the course of his career,

the third-term governor has now

signed more than 13,500 regular

session bills.

After the final bills were

dispatched on Sunday, Brown’s

press office posted a photo-

graph on Twitter of Brown’s

desk. The chair was empty, a

pen left behind.

“Festina Lente,” the tweet said,

or “make haste slowly.” •

http://blogs.sacbee.com/capitolalertlatest/2013/10/jerry-brown-finishes-bills-for-the-year-signing-nearly-9-in-10.html#storylink=cpy

33


WPA BILL WATCH L ISTBAGS

AB 158 (Levine) Solid Waste: Single-use Carry Out Bags. Two Year Bill – will be considered in January 2014

The bill would, on and after July 1, 2016, ban single use plastic bags.

SB 405 (Padilla) Solid Waste: Single-use Carry Out Bags. Two Year Bill – will be considered in January 2014

Bans single use plastic bags.

SB 700 (Wolk) Natural Resources: Parks: Carryout Bags. Two Year Bill – will be considered in January 2014

Would require a retail establishment, as defined, to collect a charge of $.05 for each single-use carryout bag provided to a customer. The bill

would require the retail establishment to retain $.005 of that charge and would allow a retail establishment to retain an additional $.005 if

the retail establishment credits the consumer no less than $.05 for each carryout bag provided by the consumer for packaging his or her

purchases, and meets other requirements. This bill contains other related provisions and other existing laws.

MARINE DEBRIS

SB 529 (Leno) Recycling: Fast Food Facilities. Two Year Bill – will be considered in January 2014

This bill would enact the Plastic and Marine Pollution Reduction, Recycling, and Composting Act and would define terms for the purposes of

that act. This bill contains other related provisions.

AB 521 (Stone) Extended Producer Responsibility: marine plastic pollution. Two Year Bill – will be considered in January 2014

Would require the Department of Resources Recycling and Recovery, by June 1, 2014, in coordination with the Ocean Protection Council and

the State Water Resources Control Board, to adopt regulations to implement the bill. The department would be required, by July 1, 2014, in

consultation with the council and the state water board, to adopt a list that specifies those items, or categories of items, that the department

finds are the major sources of marine plastic pollution and, therefore, would be a covered item for purposes of the bill, and to revise the list,

as specified. This bill contains other related provisions and other existing laws.

SALES TAX EXEMPTIONS

AB 1021 (Eggman) Alternative Energy: Recycled Feedstock. Two Year Bill - will be considered in January 2014

Would expand projects eligible for the sales and use tax exclusion to include projects that process or utilize recycled feedstock, as defined,

that is intended to be reused in the production of another product or soil amendment, but would not include a project that processes or uti-

lizes recycled feedstock in a manner that constitutes disposal, as defined.

34


M E M B E R P R E S S R E L E A S E :

BASF AND HERITAGE PLASTICSFORM STRATEGIC PARTNERSHIPBASF announced today that it

has formed a strategic manufac-

turing partnership with Heritage

Plastics, Inc. to produce ecovio®

certified compostable products

in North America.

The partnership enables BASF

to begin manufacturing ecovio

biopolymers outside of Europe

to better serve its customers

and to further focus on growth

in the rapidly developing North

American market.

Production of ecovio will begin

September 2013 at the Heritage

facility in Picayune, Mississippi.

BASF’s ecovio products represent

a broad range of compounded

polymer solutions with biobased

content, which offer excellent

processability and physical

properties along with worldwide

certified compostability.

“At BASF, we strive to find new

ways to offer our customers the

best solutions for their evolving

needs,” said Juergen Keck, Vice

President Global Business Man-

agement Biopolymers. “Our part-

nership with Heritage Plastics

allows us to respond efficiently

to a growing market and pass

along numerous benefits to our

customers in North America.”

Through the partnership, BASF

will draw upon years of com-

pound manufacturing experience

at Heritage Plastics, marrying

that with the innovative chem-

istry of ecovio. ecovio will be

exclusively marketed and avail-

able for purchase from BASF,

while maintaining a production

partnership with Heritage.

“Combining our experience and

expertise with BASF’s to broaden

the production of ecovio prod-

ucts was a natural fit,” said Paul

Lewis, President of Heritage

Plastics. “Both companies are

focused on helping customers

achieve success by providing

them the best in product quality,

as well as exemplary service and

support on a global scale.”

By expanding manufacturing of

ecovio products in North America,

BASF will supply the highest

quality, premium compostable

products while also improving

delivery flexibility, increasing

reaction speed to market needs,

enhancing product availability

and providing more customiza-

tion for new applications. ecovio

products have been available

commercially in the United States,

Canada and Mexico since 2007,

with production taking place in

Germany.

Learn more about ecovio® from

BASF, at www.ecovio.com. •P RODUCT ION OF ECOV IO W I L L B EG IN INSE P T EMBER ATTHE HER I TAGEFAC I L I T Y IN M I SS I S S I P P I .

35



EMERALD PACKAGING MARKS50TH YEAR IN BUSINESS WITHEXPANSION OF MANUFACTURINGFACIL IT IESEmerald Packaging, one of the

largest flexible packaging manu-

facturers on the West Coast and

one of the biggest suppliers of

produce packaging in the country,

today announces the purchase of

a 120,000 square foot building

adjacent to its existing facility.

This addition will facilitate the

creation of a 270,000 square

foot Emerald campus enabling

expanded production, including

increased lamination capacity, a

third laser perforation/scoring

unit, pouch-making equipment

and new printing capacity, and

both digital and traditional

flexography.

“This expansion opens up many

exciting possibilities including a

move into pouch making and

digital printing, a process that

allows us to go from computer

to press without printing plates.

This significantly increases speed

to market and flexibility,” says

Kevin Kelly, Chief Executive

Officer of Emerald.

“Emerald continues to invest in

innovation, our employees and

the infrastructure needed to

ensure we remain a leader in the

flexible packaging industry with

unique products that meet the

changing needs of our cus-

tomers. This investment and

expansion in our manufacturing

footprint is our largest yet and

will result in the addition of

approximately 20 jobs in the

next year. We are proud to be

contributing to the growth of

Union City,” continues Kelly.

Work on the new facility has

begun with production expected

to ramp up in the first quarter

of 2014. •

TH I S E X PANS IONOPENS UP MANYEXC I T ING POSS I B I L I T I E S .

36



MIREX MT TECHNOLOGY TRANSFERS PRECISION TO POLISHING STACKS

Inspired by the precision and

high level of automation of mod-

ern CNC machine tools, Reifen-

häuser Cast Sheet Coating has

developed the MIREX MT, a new

polishing stack technology that

outperforms by far all state-of-

the-art polishing stacks with

regard to reproducibility and sus-

tainability. The new patent pend-

ing polishing stack technology is

the first and only system in the

market that combines modern

digital technique with sophisti-

cated mechanical engineering

The MIREX MT product range

allows film producers to adjust

the polishing nip more precisely

by a factor of 10. In contrast to

other polishing stacks, nip

adjustment of the MIREX MT can

be adjusted fully automatically,

even during running production.

In the past, the line had to be

stopped for manual adjustment

of the correct nip on a trial and

error basis. MIREX MT works at

the push of a button and the set

data is 100% reproducible.

The high level of automation has

a positive effect both on the film

quality and production cost. Due

to the uniform thickness profile

over large web widths, producers

are able to obtain film of consid-

erably improved precision while

saving raw material. Thanks to

the automatic adjustment, set-up

times are only a quarter of the

time needed in the past. The

amount of waste can be reduced

by 75%, depending on the

production conditions.

When it comes to sustainability,

the new MIREX MT technology

outperforms all other polishing

stacks available in the market.

Hydraulic systems are completely

dispensed with so that the pol-

ishing stack developed by Reifen-

häuser Cast Sheet Coating is

suited for clean room production.

Film producers can benefit from

triple savings in energy: no need

for hydraulic pumps in permanent

operation, improved efficiency of

roll drives, no energy-intensive

adjustment of the nip.

As Helmut Meyer, responsible

developing engineer, puts it:

“Forget what you know about

polishing stacks. With MIREX MT

we have completely changed the

current state-of-the-art technology

and chosen a different approach.

Our courage paid off: In the past,

it was hardly conceivable what

the new polishing stacks were

able to accomplish with regard

to precision, automation, and

reduction of production cost.”

MIREX MT combines the roll

set-on system and the nip adjust-

ment system forming a mecha-

tronic drive unit. The angular

position of the first polishing roll

can be varied by 30 degrees

using a X-Y adjusting device.

Individual drives arranged on

both sides of the roll facilitate

axle crossing of the first two rolls

—a prerequisite for a uniform

film thickness profile. Reifen-

häuser Cast Sheet Coating has

optimized the existing roll drives

by combining several low-back-

lash planetary gearboxes with

servomotors and torsion-resis-

tant couplings.

MIREX is available in three

designs, depending on applica-

tion, film thickness and produc-

tion capacity: Smart, Standard

and High Quality.

Smart: Less challenging applica-

tions (PS/PP) and low to medium

output of maximum 1.200 kg

per hour

Standard: Medium to higher

capacities selectable in three

steps from 1,000 to 3,000 kg

per hour.

High Quality: Ensures high

performance for specific applica-

tions in terms of output, speed

and different film thicknesses

and film properties.

Reifenhäuser Cast Sheet Coating

presented the new MIREX MT

polishing stack for the first time

at the resent K show in Düssel-

dorf. •

THE H IGH L E V E LOF AUTOMAT IONHAS A POS I T I V EE F F ECT ON F I LMQUA L I T Y ANDPRODUCT IONCOST.

37



DOW CHEMICAL RECEIVES ENVIRONMENTAL AWARDThe Dow Chemical Company,

was presented with an Award for

Environmental Excellence at the

environmental conference

hosted by state trade associa-

tions CMTA, CICC and IEA in San

Diego on November 5th.

In 1989, The Dow Chemical

Company purchased 450 acres

of property adjacent to its Pitts-

burg, California, manufacturing

facility to serve as an environ-

mental buffer zone between the

site and rapidly expanding resi-

dential construction. The prop-

erty included a 175 acre tidal

wetlands and a 25 acre fresh -

water beaver pond.

Several Dow employees recog-

nized the beauty and abundance

of the property and made plans

to develop the resources. Today,

some thirty employees, retirees,

and community members who

comprise the Dow Wetlands Envi-

ronmental Team, WET Team, have

for over two decades performed

a labor of love restoring and

enhancing the property.

WET Team members routinely

plant native species of trees,

shrubs and wildflowers. To

irrigate the native oak trees, the

WET Team installed an iconic

windmill from the movie set of

the film “The Unforgiven.” They

constructed a viewing platform

and numerous wild bird nesting

boxes, installed docks, and

added a recycled water irrigation

system. Other enhancements

have included nesting site im-

provements for migrating birds,

and most recently a new 1/2-mile

nature trail through the tulles

and forest.

On any given Friday you can find

WET Team volunteers building

trails and wildlife habitat, or bat-

tling invasive water plants. But it

doesn’t stop there—Dow and the

WET Team have developed a

strategic partnership program

thanks to effective collaboration

with several local organizations,

including: the Lindsay Wildlife

Museum, the Earth Team, com-

prised of high school students

in Contra Costa County who have

a passion for the environment;

the Antioch High School Environ-

mental Academy, and the Los

Medanos College Chemistry and

Environmental Sciences Classes,

that use the Wetlands as their

outdoor laboratory. Every year,

the WET Team organizes an

Environmental Fair, and invites

some 450 fourth-grade students

to visit the wetlands. •DOW’S ‘WET ’T EAM ROUT INE LYP LANTS NAT I V ET R E ES , SHRUBS &WI LD F LOWERS .

38



NATUREWORKS AWARDS CONTRACT FOR ITS NEWINGEO™ PRODUCTION FACIL ITY

NatureWorks announced today

that Jacobs Engineering Group,

Inc. (NYSE:JEC) has been

awarded the engineering design

contract for the company’s next

world-scale Ingeo™ production

plant in Southeast Asia.

Jacobs, headquartered in

Pasadena, Calif., is one of the

world’s largest and most diverse

providers of technical, profes-

sional, and construction services

with extensive experience in

polymer and chemical plant

design and construction.

“Jacobs’ front-end engineering

design work will include major

equipment design and is the next

stage of what is a multi-year proj-

ect that will move into detailed

engineering design, procure-

ment, construction, and plant

start-up,” explained Steve Bray,

Director of Manufacturing and

Engineering, NatureWorks.

The company noted that these

phases of the project collectively

may require three years for com-

pletion, with Thailand currently

targeted as the preferred plant

location.

Jacobs Group Vice President

Chris Nagel stated, “We’re

delighted to continue our part-

nership with NatureWorks as

they expand support to their

clients in the Asia Pacific region

and increase their global prod -

uction efforts.”

Officials did not disclose the

contract value, but noted that

the project is expected to be

executed primarily out of Jacobs’

Greenville, South Carolina, office.

Ingeo is made from locally abun-

dant renewable plant materials,

not oil. In 2002, NatureWorks

became the first company to pro-

duce a biopolymer at world-scale

quantity. In 2013, NatureWorks

expanded its flagship Blair

facility to an annual total Ingeo

capacity of 150,000 metric tons,

and located its first Asia Pacific

regional headquarters in

Bangkok, expanding its team of

senior commercial, managerial,

and technical personnel to

enhance support of Ingeo

customers throughout the

region.

A sampling of current Ingeo

products can be found online in

NatureWorks’ Ingeo LookBook.

For more information about

NatureWorks and Ingeo, visit

www.natureworksllc.com.

The international Ingeo users’

forum “Innovation Takes Root”

will be held February 17-19, 2014,

in Orlando, Florida. •INGEO I S MADEF ROM LOCA L LYABUNDANT, R ENEWAB L EP LANT MATE R I A L .

39



LYONDELLBASELL GRANTSSPHERIZONE L ICENSE FOR PP PLANT IN CHINA

LyondellBasell today announced

that CNOOC Oil and Petrochemi-

cals Co. has selected the Lyondell

Basell Spherizone technology for

a 400 KT per year polypropylene

(PP) plant planned to be built at

Huizhou, China.

“LyondellBasell Spherizone tech-

nology can deliver a wide range

of high-quality PP products with

low resource and energy con-

sumption and we are pleased

that CNOOC has again selected

our technology for their new

facility,” said Bob Patel, Lyondell-

Basell Senior Vice President,

Olefins and Polyolefins for

Europe, Asia, International, and

Technology. “This is the fourth

polyolefins process technology

we have licensed to CNOOC and

its joint venture, building on a

relationship that spans more

than 10 years.”

Spherizone offers a multi-zone

circulating reactor process

providing an economical and

efficient method of manufactur-

ing a wide range of high-quality

polypropylene and novel poly-

olefins resins all on a single-line

with capacities of up to 500 KT

per year. Low manufacturing and

investment cost make Spheri-

zone very attractive in the market

place. Since the launch of the

Spherizone process in 2004,

more than 3.5 million tons of

capacities have been licensed.

In addition to the Spherizone

process, the LyondellBasell

portfolio of licensed polyolefin

technologies and associated

technical services is comprised

of:

• Spheripol – leading polypropy-

lene technology for the produc-

tion of homopolymer, random

and heterophasic copolymers.

• Metocene PP – technology for

the production of specialty

polypropylene products using

single-site catalyst systems.

• Lupotech – the leading high-

pressure tubular and autoclave

process technologies for the pro-

duction of low density polyethyl-

ene (LDPE) and ethylene vinyl

acetate (EVA) copolymers.

• Hostalen – a low-pressure

slurry process for the production

of high-performance multimodal

high density polyethylene

(HDPE).

• Spherilene – flexible, gas-

phase process technology for

the production of linear low

density polyethylene (LLDPE),

medium density polyethylene

(MDPE) and HDPE.

About LyondellBasell

LyondellBasell is one of the

world’s largest plastics, chemical

and refining companies and a

member of the S&P 500 Index.

LyondellBasell (www.lyondell-

basell.com) manufactures prod-

ucts at 58 sites in 18 countries.

We participate in the entire

petrochemical value chain, from

refining to specialized petro-

chemical product end uses. We

are the largest producer of

polypropylene and polypropy-

lene compounds; a leading

producer of propylene oxide,

polyethylene, ethylene and

propylene; a global leader in

polyolefins technology; and a

producer of refined products,

including biofuels. Additionally,

LyondellBasell is a leading

provider of technology licenses

and a supplier of catalysts for

polyolefin production.

We manufacture products and

develop technologies that im-

prove the quality of life for peo-

ple around the world. Our

products are the basic building

blocks used to manufacture

countless everyday goods such

as personal care products, fresh

food packaging, lightweight

plastics, construction materials,

automotive components, durable

textiles, medical applications,

biofuels and many others. With

the help of LyondellBasell materi-

als, thousands of products are

made safer, stronger, more af-

fordable and more reliable. •

TH I S P RO J ECTBU I L DS ON A R E LAT IONSH I PTHAT S PANSMORE THAN 10 Y EARS .

40



K2013: A SUCCESSFUL SHOWLEAVES WINDMÖLLER &HÖLSCHER OPTIMISTIC

The K proved once again to be

positive and productive for Wind-

moeller & Hoelscher. The company

received enthusiastic feedback

from customers regarding new

technologies presented at the

booth as well as at the simul-

taneous in-house Expo at com-

pany headquarters in Lengerich.

The K reaffirmed its position as

the world’s leading forum for the

plastics industry, proving that ex-

hibiting is well worth the effort.

While the total number of visitors

to K 2013 was roughly the same

as at previous shows, Wind-

möller & Hölscher noted higher

traffic in the booth on most days

than in the past. The professional

staging of the new VAREX II

blown film line played a major

role in this. “With this system,

W&H sets a new standard in

blown film extrusion,” says Man-

aging Director, Peter Steinbeck,

commenting on responses from

customers on the futuristic

design of the new line.

The company was particularly

pleased with the many new rela-

tionships that were formed. The

Expo set its own attendance

records, with over 800 visitors

from 64 countries. In earlier days,

some projects were decided on

the spot. Since this has long not

been the case, W&H was aston-

ished by the number of sales that

were made at the show. Addition-

ally, many substantive requests

as well as intensive discussions

and negotiations with customers

from around the world have

given the company reason to

be optimistic about post-show

business.

To build suspense and attract

visitors to the booth, W&H pro-

moted the unveiling of its new

blown film line, known before the

show as “E-24.” Expectations

were high. Many visitors found

walking through the “experience

tunnel” to the new VAREX II line

to be jaw dropping. The line’s

minimalistic and elegant design

combined with its increased

output, higher energy efficiency,

improved ergonomics and main-

tainability made a big impression.

The VAREX II was shown produc-

ing a 5-layer, 2200 mm wide, 40

micron shrink film at 1000 kg/hr

using the MAXICONE P die, which

was specially designed for work-

ing with polyolefin.

The new and innovative ARCTIS

air ring played a significant role

in the line’s performance. It has

a new air supply, which cools film

faster thus increasing output.

Its unique integral design also

allows for greater accessibility

to the die.

The new design was carried over

to the FILMATIC S II winder,

which produced perfectly wound

rolls at the show.

Progress was also evident in the

new automation system. Aside

from the well-known modules

EASY-CHANGE (autopilot for

size changeovers), PROFILE

BOOSTER (accelerated line start-

up) and PURGE ASSIST (auto-

matic purging of extruders and

die), W&H unveiled EASY-WIND

for optimum roll quality and EN-

ERGY MONITORING for display-

ing energy usage of all line

components. The established ISP

module for the collection and

storage of all production para -

meters has been extended in the

new PPC (Production Planning

and Control) module, a new

feature permitting decentralized

job preparation and in conjunc-

tion with an ERP system, such

as SAP. Order specifications and

product formulations can be

directly transmitted from the on-

site ERP system to the extrusion

line, without the operator having

to enter any order data locally.

W&H also presented a second

blown film line at the K: the

OPTIMEX. The OPTIMEX was

launched in 2009 for the middle

segment. The 1800 mm OPTIMEX

line demonstrated the


W&H WAS AS TON ISHED BYTHE NUMBER OFSA L ES MADE ATTHE SHOW.

41


production of gusseted stretch

hood film for transportation load

stability, clearly conveying the

message that W&H continues to

develop its 3-layer portfolio for

modest budgets as it furthers its

market position.

The in-house EXPO in Lengerich

offered a supplemental, in-depth

look at W&H technology. Visitors

were able to not only see

machines for film production,

but also printing presses and

converting machine, giving a

comprehensive picture of the

entire process chain.

Altogether, six extrusion lines

were run at the Expo. They in-

cluded, four blown and two cast

film lines, all running different

products. In addition to a VAREX

II (producing 3-layer film), the

FILMEX cast film line, configured

specially for stretch film, ran a

300 mm, 33-layer, 12 micron

Super Power stretch film for load

stability at speeds of 600 m/min

and with a net output of 1200

kg/h. Fully automatic small roll

job changes were made on the

newly developed FILMATIC

PS winder.

The printing lab attracted visitors

with demonstrations of the

MIRAFLEX CM 10 and VISTAFLEX

CL 8 flexographic presses as well

as the HELIOSTAR SL/SE 8

gravure press. An additional

MIRAFLEX AM 8 was used to

demonstrate the COREMATIC for

automatic small roll handling.

For manufacturers of sacks made

from heavy-duty films and woven

polypropylene fabrics, W&H

offered a special treat: two

tubers from the POLYTEX range

as well as the CONVERTEX and

CONVERPINCH bottomers—all

for robust packaging of building

materials and pet food. •

WINDMOE L L E R & HOE L SCHER [CONT ’D ]

42


P L A S T I C S T O D AY:

GLOBAL PLASTICS SUMMIT: THE MULTIPLIER EFFECT OFSHALE GAS BY HEATHER CA L I ENDO, P LAS T ICS TODAY

Looking beyond terms such as

“renaissance” and “revolution,”

plastic packaging producers

believe the industry is in prime

position to size a big opportunity

due to a shale gas advantage.

“One clear benefit is the addition

of numerous jobs,” Dow Chemi-

cal’s Greg Jozwiak, commercial

VP for North America packaging,

said at the inaugural joint SPI/

IHS Global Plastics Summit in

Chicago.

For instance, a 1% growth in PE

requires 28 plastic processing

lines. He said 4.5% PE growth

would equate to 770 KT lb of

resin processed at a convertor,

which can create 1400 new direct

line jobs.

A new IHS study projects U.S.

shale energy development to be

responsible for a 10% increase in

production for the plastics indus-

try and will be responsible for

adding close to 15,000 jobs by

2020.

Another potential impact of shale

gas: material substitution. That

term was referenced several

times during the day and Jozwiak

believes it presents an address-

able market opportunity in pack-

aging for PE.

The packaging industry was a

$173 billion industry in 2012,

with about paperboard account-

ing for $57 billion. PE in packag-

ing was reportedly $12.3 billion.

Trends supporting the conver-

sion to plastics include light-

weighting, food preservation,

convenience features and waste

reduction, Jozwiak said.

“My perspective is that shale gas

presents an opportunity to col-

laborate and innovate for growth

—to reshore the manufacturing

of film bags; replace traditional

material in packaging and export

finished goods,” he said. “We

have the opportunity to build up

the industry beyond the will of

the existing market.”

Impact to the convertorScott Farmer, executive VP of

global purchasing of packaging

giant Berry Plastics, believes

lower cost ethane drives innova-

tion, investment and new jobs.

“Shale gas is very important to

us as we are primarily a North

American producer,” he said.

“Resin represents the largest

part of all our cost of packaging

—about 70%.”

The advantages of a lower cost

resin will allow plastic packaging

to grow into spaces occupied by

other substrates. Farmer also

believes that lower costs will

bring jobs back to the U.S. and

help drive innovation.

“What if we could convert 20% of

the volume in the North American

market to plastics?” he asked.

“This would result in about 167

billion units a year.”

Assuming the average weight

is 10 grams, he said this would

equate to 3.7 billion lb of PE.

An average cracker and PE plant

being added at 2 billion lb would

create more than 300 jobs in the

economy, Farmer said. The im-

pact of 2 billion lb to the conver-

tor is about 14,000 jobs.

“That’s big numbers in job

creation," he said. "Jobs created

with the lower cost PE unleashes

the power of the convertor to

gain market share." •Reprinted from www.plasticsto-

day.com, November 5, 2013.

LOWER COSTE THANE DR I V ESINNOVAT ION,INVES TMENTAND NEW JOBS .

43


V O T E R I N I T I AT I V E :

WASHINGTON STATE VOTERSREJECT GMO INIT IATIVEBY PAME LA BA I L E Y, GROCERY MANUFACTURE RS ASSOC.

Yesterday, Washington State

voters rejected I-522, a proposal

that would have required food

and beverage products made

with genetically modified food

ingredients (GMOs), with 55%

voting against the proposal and

45% voting for it.

I-522 was a complex and costly

proposal that would have misled

consumers, raised the price of

groceries for Washington families

and done nothing to improve

food safety.

This is an important development

in our effort to provide consumers

with a wide array of safe and

affordable food and beverage

choices. Genetically modified

food ingredients (GMOs) are

safe, good for the environment,

reduce the cost of food and help

feed a growing global population

of seven billion people.

Because a 50-state patchwork of

GMO labeling laws would be con-

fusing and costly to consumers,

GMA will advocate for a federal

solution that will protect con-

sumers by ensuring that the FDA,

America’s leading food safety

authority, sets national stan-

dards for the safety and labeling

of products made with GMO

ingredients. Our country’s label-

ing laws have been—and should

continue to be—based on health,

safety and nutritional content.

We will continue to oppose indi-

vidual state efforts to impose

mandatory labeling of products

made with GMO technology, as

well as advocate for the safe and

effective use of this important

technology to increase the food

supply while lowering cost. And

we will continue to engage in an

informative dialogue with our

consumers on the safety, preva-

lence and benefits of that tech-

nology. •Reprinted from Grocery Manu -

facturers Association press

release, November 6, 2013.

GENET ICA L LYMOD I F I ED FOODINGRED I ENTSARE SA F E , GOOD FOR THEENV I RONMENTAND R EDUCE THE COST OFFOOD .

SAVE THE DATE: SOCAL MEETING

MARCH 18—NORWALK DOUBLETREEENERGY: what you need to know about new prices, increased efficiencies, and global warming

44


V O T E R I N I T I AT I V E :

WASHINGTON STATE VOTERSREJECT GMO LABELINGBY E L I ZABE TH WE I S E , USA TODAY

Washington state voters on

Tuesday rejected an initiative

that would have required foods

containing genetically engineered

ingredients to be labeled.

The vote was 54.8% opposed to

labeling and 45.2% in favor of

it. Had it passed, Initiative 522

would have made the state the

first in the nation to require

such labeling.

The initiative was the most

expensive in state history,

though it was largely fought

by out-of-state interests.

The “No on 522” campaign set a

record for fundraising, bringing in

$22 million in donations accord-

ing to The Seattle Times. Just

$550 came from Washington

residents, according to the news-

paper. The top five contributors

were the Grocery Manufacturers

Association, Monsanto, DuPont

Pioneer, Dow AgroSciences and

Bayer CropScience.

The largest donor to the pro-

labeling campaign were Califor-

nia-based Dr. Bronner’s Magic

Soaps and the Center for Food

Safety in Washington, D.C.

However the initiative garnered

almost 30% of its funding from

individuals in Washington state,

the Times reported.

Food industry ads claimed that

the initiative would raise food

prices. Labels would mislead

consumers into thinking that

products that contain genetically

engineered ingredients are

“somehow different, unsafe or

unhealthy,” said Brian Kennedy

of the Grocery Manufacturers

Association, a food industry

group based in Washington, D.C.

The “Yes on 522” campaigns

emphasized consumers’ right to

know what’s in their food.

The Washington initiative was

part of an ongoing national fight

by those opposed to genetically

engineered crops to push for

labeling. A similar, bruising $37

million battle in California in 2012

went against labeling advocates.

The final vote was 51.4% opposed

and 48.6% in favor.

“Sooner or later, one of these is

going to pass. It’s only a matter

of time. At some point the industry

is going to get tired of pouring

this kind of money into these

campaigns,” said Marion Nestle,

a professor of nutrition at New

York University.

She said she doesn’t believe

there’s anything dangerous

about genetically engineered

foods but is concerned about

corporate control of the food

supply.

Genetically engineered crops

have a gene from another plant

inserted into them to give them

some ability they didn’t have

before.

There are two common genetic

modifications. One is for herbi-

cide tolerance: Plants are given a

gene that protects them from

harm when a farmer sprays them

with herbicides to kill weeds. The

other is a gene from a soil bacteria

called Bacillus thuringiensis that

allows plants to produce their

own insecticide.

A huge proportion of commodity

crops grown by U.S. farmers are

genetically engineered: 97% of

the nation’s sugar beets, 93% of

the soybeans, 90% of the cotton

and 90% of the feed corn for

animals, according to the 2013

figures from the Department

of Agriculture.

About 60% of the papaya grown

in the United States, all in Hawaii,

has been genetically engineered

to allow it to withstand the ring -

spot virus, which virtually wiped

out papaya production in the

islands in the 1980s, according

to the International Service for

the Acquisition of Agri-biotech

Applications.

Very small amounts of geneti-

cally engineered zucchini, yellow

squash and sweet corn are also

sold in the United States.

The Food and Drug Administra-

tion does not require foods con-

taining genetically engineered

ingredients to be labeled because

it considers them “functionally

equivalent” to conventionally

grown crops. •Reprinted from www.usatoday.

com, November 6, 2013.

WASH INGTONSTATE IN I T I AT I V EWAS PART O F AN ONGOINGNAT IONA L F IGHT.


W PA L E A D E R S H I P F O R 2 0 1 3 :

OFFICERS JOHN P ICC IU TO , P R ES I D ENTH Mueh l s t e i n & Co .

K EV IN K E L LY, V ICE P R ES I D ENTEme r a l d P a c k ag i n g

M ICHAE L HA I L F INGER , T R EASURE RINX I n t e r n a t i o n a l I n k Co .

CHANDL E R HADRABA , S ECRE TARYB r ad l e y P a c k ag i n g S y s t em s

BOARD OF DIRECTORS BRUCE CART E R G r ea t Ame r i c a n P a c k ag i n gMARK DAN I E L S H i l e x P o l y Compan yS T EVE DES PA IN R e i f e n ha u s e rCOL IN F E RN I E We s t e r n Con co r d M f g .ROGER HEWSON Windmoe l l e r & Hoe l s c h e rRAY HUFNAGE L P l a s t i c E x p r e s sS T EVEN JONES J a t c o , I n c .PAT R ICK MONTOYA New G r e e n Da yS T E PHEN SCHROEDER S i gma P l a s t i c s G r o upDAVE SHEW MAKER He r i t a g e Bag

WPA TODAY published by:

Western Plastics Association1029 J St., Suite 300Sacramento, CA 95814

916.761.2829 Cell916.930.1938 [email protected]

Editor: Laurie Hansen

Disclaimer: Western Plastics Association (WPA) does not endorse or recommend other than those officially endorsed byWPA, any individual or companythat is mentions in this newsletter.Any business conducted is between the member and the individual or company. Any state-ments made in this newsletter arethose of the authors and do notnecessarily reflect the views ofWPA or its Board of Directors.

@2013 Western Plastics Association

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