Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
June 21, 2021 03:48 PM

Congressional Democrats propose 5-cent virgin plastic tax

Steve Toloken
Assistant Managing Editor
Plastics News Staff
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    Office of U.S. Rep. Raúl Grijalva

    Grijalva

    Democrats in Congress are proposing a 5-cent fee on virgin plastic in single-use products, with half of the money going to efforts to fight climate change and half to general government coffers.

    The fee has been added to climate legislation from Rep. Raúl Grijalva, D-Ariz., and chair of the U.S. House Committee on Natural Resources. It would put a 5-cent-per-pound excise tax on virgin resin and establish a Virgin Plastic Trust Fund.

    Grijalva added the plastics fee June 8 to his Ocean-Based Climate Solutions Act, first introduced in 2020.

    "We have a new addition to the bill," he said, in video comments released with the legislation. "We can put a fee on producers of plastic. This will help pay for ocean conservation and cut down on the wasteful material choking our marine life and causing environmental injustices across our communities."

    As well, legislation could be coming in the Senate. Sen. Sheldon Whitehouse, D-R.I., on June 22 retweeted a Washington Post editorial calling for a virgin plastics tax, saying "Stand by. One is on the way."

    Whitehouse was one of the primary sponsors of the industry-backed Save Our Seas legislation and told an audience at the Global Plastics Summit last year that recycling in the U.S. faces a "reckoning."

    Meanwhile, Grijalva's bill directs President Joe Biden's administration to write regulations on determining the amount of virgin plastic in items in single-use plastic products covered by the legislation.

    Grijalva's proposal would specifically exempt plastics used in medical products, infant formula, meal replacements, containers regulated by the Food and Drug Administration, feminine hygiene and sexual health products.

    It says it would include plastic products routinely recycled or thrown out after one use, and derived from petroleum, natural gas or "vegetation-based resources."

    The plastics fee is part of broad climate legislation from Grijalva and it has 26 other Democratic House co-sponsors, including some active around plastics issues such as Rep. Alan Lowenthal, D-Calif.; Rep. Chellie Pingree, D-Maine; and Rep. Suzanne Bonamici, D-Ore.

    The Plastics Industry Association in Washington said the potential resin tax is "unreasonable" and called on policymakers to "recognize the benefits plastics bring to our daily lives."

    "Haphazardly adding a resin tax to pay for a laundry list of unrelated policy items is an unreasonable approach to achieving environmental solutions," the group said. "We all want cleaner oceans. [The group] supports the Save Our Seas 2.0 Act, now law, which improves international cooperation and cleanup."

    The association said the industry is "pouring enormous resources" into recycling and waste management efforts worldwide, as well as innovation around materials and products.

    The legislation also includes a provision directing the Biden administration to negotiate international agreements or other pacts to reduce virgin plastic production. Specifically, it calls for an accord that "effectively reduces global single-use plastic production from virgin polymers to 10 percent of 2010 levels by 2050." The bill does not include details on how that would be implemented.

    The environmental group Oceana supports the fee as a way to reduce single-use plastics.

    Christy Leavitt, plastics campaign director for the group, said it would build on local and state bans, taxes, container deposits and policies that support reusable packaging. And she pointed to a referendum in California in 2022 that seeks to put fees on single-use plastic packaging.

    "Though this may be the first time Congress is considering a virgin plastic tax, we've seen fees on single-use plastic bags drive change around the country through city and state policies over the past decade," she said.

    Leavitt said the global plastics industry would be the fifth-largest emitter of greenhouse gases, if it were a country.

    "We can't fight climate change without fighting plastic," she said. "The two are intrinsically linked, thanks to plastic's colossal carbon footprint. Plastic contributes to climate change at every stage of its life cycle, producing an estimated 1.8 gigatons of global greenhouse gas emissions each year."

    Grijalva's bill is much broader than the plastics fee, although he highlighted the resin tax in his comments.

    The legislation would also seek to set up carbon sinks in federal waters, update fishing fleet fuel regulations, promote offshore wind energy, limit new offshore fossil fuel development and eliminate fishing subsidies in trade agreements, among other steps.

    The plastics tax came up briefly at a hearing Grijalva chaired on his ocean legislation on June 22. The congressman mentioned it in opening remarks and several panelists commented in favor, but it was not discussed by other members of Congress.

    Marce Gutierrez-Graudins, head of the environmental group Azul, said she "strongly supported" a plastics tax, and in written comments with his testimony, Hawaii state legislator Chris Lee said assessing fees on virgin resin could help local governments clean up plastic waste.

    He said beaches in his state are "littered with microplastic" and argued that California spends $400 million a year keeping trash from getting into waterways.

    RECOMMENDED FOR YOU
    Pipe extruder fined for child labor law violation
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    ExxonMobil weighing options for more chemical recycling capacity
    2
    Wilbert Plastic Services adjusts to changes with new owner, leadership
    3
    PepsiCo on a ‘multiyear journey' toward bioplastics
    4
    After years of challenges, can secondary sortation take off?
    5
    Biden sets US goal to replace 90% of plastics with biomaterials
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified