by Ken Pokalsky, Vice President of Government Affairs at Business Council of NYS, Inc.
Reducing waste disposal is an important policy noble objective, but placing an unfair burden on businesses, especially small business, in the current economic climate is bad for companies and bad for consumers. As the leading business organization in New York State, The Business Council is deeply concerned about the potential impacts of the proposed Packaging Reduction and Recycling Infrastructure Act. While we share the goal of reducing packaging waste and enhancing recycling efforts, we believe that the current legislative proposal is the wrong approach.
The legislation is not new, and similar proposals have failed to receive legislative approval. Unfortunately, the bill is gaining increased attention as we near the end of the 2024 legislative session. Given recent committee approvals, it is essential that the public and legislators understand the full economic impact of this legislation.
Recent studies, including one from York University in Toronto, have highlighted the significant cost implications of the proposed legislation. According to the York study, consumers could face up to $1 billion-a-year cost increase over the next five years if the bill is enacted. This would have a significant impact on New York’s lower income households, with an estimated cost of $720 per household over five years.
Moreover, a recent survey conducted by The Business Council’s Public Policy Institute underscores the concerns of New Yorkers about the potential economic impacts of the legislation. While there is support for environmental protection, respondents overwhelmingly prioritize a balance between environmental initiatives and economic impacts. The survey found that 56% of New Yorkers believe the legislation would increase costs for everyday products, and a similar percentage are not willing to pay more for goods to reduce plastic waste.
The proposed legislation would also have broader economic ramifications, affecting businesses across the state. The study from York University suggests that packaging producers are unlikely to absorb the increased costs imposed by the legislation, meaning that these costs would ultimately be passed on to consumers and other participants in the supply chain.
Furthermore, the bill’s focus on banning certain materials and mandating packaging redesigns could have unintended consequences for businesses and consumers alike. It would require significant investments in new materials and production capacity, and could lead to a reduction in product choices and potentially higher prices for consumers.
At a time when affordability is a top concern for New Yorkers, it is crucial that any new legislation is designed to minimize unnecessary cost impacts. While we support the concept of Extended Producer Responsibility (EPR) legislation in principle, the current proposal goes too far and too fast, imposing significant burdens on businesses without adequate consideration of the economic consequences.
Instead, we believe that a more balanced approach is needed—one that prioritizes waste diversion and enhanced recycling capabilities without unduly burdening businesses or consumers. This means avoiding broad material bans and mandates that could drive up costs and limit consumer choice.
The Business Council is committed to working with policymakers to develop a more workable and pragmatic solution to packaging waste and recycling. By engaging stakeholders and considering the concerns of businesses and consumers, we can achieve a more sustainable future for New York State.
