Wednesday
  October 2, 1991
 Part IV



 Environmental

 Protection  Agency

 Guidance for the Use of the Terms
 "Recycled" and "Recyclable" and the
 Recycling Emblem in Environmental
 Marketing Claims; Notice of Public
Meeting

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/~%V4h«l« V *
[EPA/OSW-FR-91-032;SWH-FRU-4018-3]

Guidance for the Use of the Terms
"Recycled" and "Recyclable" and the
Recycling Emblem In Environmental
Marketing Claims
AGENCY: Environmental Protection
Agency (EPA).
ACTION: Notice of public meeting and
request for comments.
 SUMMARY: EPA plans to develop
 recommendations to the Federal Trade
 Commission on voluntary guidance for
 environmental claims promoting the use
 of recycled materials and recyclable
 materials. The Federal Trade
 Commission is considering such
 guidance in response to petitions from
 States and today's notice solicits
 comment on a number of options EPA is
 considering for the guidance. The notice
 also announces the time and location ot
 a public meeting EPA will hold to hear
 oral comments from interested parties
  on the options outlined in this notice.
  DATES: Comments on this notice must be
  received on or before December 31,
  1991. The public meeting will be held on
  Wednesday, November 13, and
  Thursday, November 14,1991 from 9:30
  am to 4:30 pm at The Rosslyn Westpark
  Hotel, Arlington, VA. Requests to
  present oral testimony must be received
  on or before Monday,  October 28,1991.
  EPA requests that ten copies of the oral
   comments be submitted on or before
   Friday, November 8,1991.
   ADDRESSES: (1) Public Meeting—The
   Agency will hold a public meeting on  -
   Wednesday, November 13, and
   Thursday, November 14,1991, to receive
   comments on the options and issues
   relating to the options. The meeting will
   consist of two days of testimony.
   Because of the limited amount of time
   available and the desire to hear a range
   of views, presenters will be grouped in
   appropriate panels and will be allotted a
   specified time for statements, which
   may be followed by questions from the
   panel. Groups with common
   perspectives on the questions raised by
    these options are urged to select a single
    representative.
     Written requests to appear at the
    meeting should be submitted no later
    than Monday, October 28,1991 to: Office
    of Solid Waste, Public Meeting Request/
    F-91-GPLP-FFFFF, OS-305, 401 M
    Street, SW., Washington, DC 20460. The
    notice of participation should contain
    the name, affiliation [if applicable),
    address, and telephone number of the
    participant and the individual presenter,
and a brief statement of the participant's
interest in the matter, and the topic of
presentation.              ,  .*,
  If the Agency determines that there
will not be adequate time to hear from
all those wishing to present comments,
the Agency will selept among those
wishing to testify, in order to ensure that
a range of viewpoints and interests is
represented. As time allows, individuals
may also  sign up to present comments
during registration time at the; hearing.
   The public meeting will be held at The
Rosslyn Westpark Hotel, 1900 North
Fort Myer Drive, Arlington, VA 22209 in
 the Rosslyn Ballroom.
   (2) Written Comments—Written
 statements and additional information
 may be submitted at the public hearing
 for inclusion in the official record.
 Written comments of any length will be
  accepted. Commenters must send an
  original and two copies of their
  comments to: RCRA Docket Information
  Center, Office of Solid Waste [OS-305),
  U.S. Environmental Protection Agency
  Headquarters, 401M Street SW.,
  Washington, DC 20460. Comments must
  include the docket inumber F-91-GPLP-
  FFFFF. The public docket is located at
  EPA Headquarters, room M2427 and is
  available for viewing from 9 a.m. to 4
  p.m., Monday through Friday, excluding
  Federal holidays. The public must make
  an appointment to review docket
  materials. Call [202) 260-9327 for
   appointments. Copies cost $.15/page.
   FOR FURTHER INFORMATION CONTACT:
   For general information, contact the
   RCRA/SuperfundWotline, Office of
   Solid Waste, U.S. Environmental
   Protection Agency (800) 424-9346 or
   (703) 920-9810, local in the Washington,
   DC metropolitan area.
     For information on specific aspects ot
   this notice, contact William MacLeod,
   Office  of Solid Waste (OS-301), U.S.
   Environmental Protection Agency, 401M
   Street SW., Washington, DC 20460, (202)
   260--i662.
   SUPPLEMENTARY INFORMATION: Copies
   of the following documents are_available
   for viewing  only in the RCRA Docket
—	"	
Regional Labeling Standards and
  Labeling Resolution, the Northeast
  Recycling Council.
Petition for Federal Trade Commission
  Guides from National Food Processing
  Association and other Petitioners.
 Petition for Federal Trade Commission
   Guides from the Cosmetic, Toiletry,
   and Fragrance Association and the
   Nonprescription Drug Manufacturers
  ; Association.
   Open Remarks of F. Henry Habicht II,
  Deputy Administrator, U.S.
  Environmental Protection Agency before
  the Federal Trade Commission,
  Hearings on Environmental Labeling,
  July 17,1991.
    Workplan for the Interagency Task
  Force on Environmental Marketing
  Claims, U.S. Environmental Protection
  Agency, Federal Trade Commission,
  U S. Office of Consumer Affairs.
  Description of Labeling Efforts, Draft
  EPA Report.
  Notice Outline
    room:
    The Green Report: Findings and
      Preliminary Recommendations for
      Responsible Environmental
      Advertising, State Attorneys General
      Task Force.
    The Green Report II: Recommendations
      for Responsible Environmental
      Advertising, State Attorneys General
      Task Force.  |
    Recycling Emblem Regulations, State ot
      Rhode Island |and Providence
      Plantations Regulations.
    6 NYCRR Part 368 Recycling Emblems,
      New York State Regulations.
  I. Introduction
    A. Overview
    B. Federal Role
    C. Purpose of Today's Notice
    D Goals and Objectives of EPA Voluntary
      Environmental Claims Guidance
   II. Definitions
   IU. Options for Guidance for Recycled
       Content Claims
     A. Option 1: Disclosure of Recycled
       Materials Content
     B Option 2: Minimum Content Standards
     C. Option 3: Minimum Content Standards
       and Disclosure
     D. EPA's Preferred Option
     E. General Issues Relating to "Recycled
       Content" Claims
   IV. Options for Guidance for Recyclable
       Marketing Claims
     A. Option 1: Minimum Recycling Rate ana
       Recycling Rate Disclosure
     B. Option 2: Qualified Claims
      C. Option 3: Qualified Claims and
   :    Disclosure of National Recycling Rate
      D Option 4: Minimum Recycling Rate,
        Qualified Claims, and Disclosure ot
        National Recycling Rate
      E. EPA's Preferred Option
    V. General Guidance
      A. Use of Recycling Emblem        _
      1. Option 1: Limit Use of Recycling Emblem
        to Certain Recycling Claims
      2. Option 2: Use American Paper Institute
        Guidance
      3. Option 3: Clearly Label the Recycling
        Emblem                        ,
      4. EPA's Preferred Options for the Use of
        the Recycling Emblem
       B. Separating Claims of Packaging and
        Product

     I. Introduction

     A, Overview
       The American public is increasingly
     concerned about environmental issues,

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    and individuals are looking for ways to
    do their part to protect our nation's
    environment and resources. In the past
    few years, public understanding of the
    nature of environmental problems has
    become more sophisticated. Many
    people recognize that large
    environmental problems are created not
    only by the actions of large companies
    and organizations, but also by the
    seemingly small actions of millions of
    individuals, for example, the generation
    of municipal solid waste, or the
    generation of "greenhouse" gases that
    may contribute to global climate change.
     Many individuals are responding by
    trying to lessen the impacts of their own
    behavior, by car-pooling to work
   conserving water at home,  and
   purchasing consumer products which in
   some way offer an environmental
   advantage: Energy-saving lighting
   fixtures and appliances, products which
   contain fewer hazardous constituents, or
   products containing recycled materials.
   Manufacturers and marketers are
   responding to the consumer demand for
    environmentally oriented" products by
   attempting to make products which do
   not contribute to upper atmospheric
   ozone depletion, create less solid waste
   or fewer adverse impacts on water
   quality, etc. They are also advertising
   and otherwise highlighting both the real,
   and desired, environmental benefits of
   these products for consumers.
    The Environmental Protection Agency
  (EPA) views the increased desire for
   environmentally oriented" products as
  an opportunity to find effective non-
  regulatory solutions to difficult
  environmental problems which may in
  some cases be solved more efficiently in
  the marketplace than through
  government regulations.
  Environmentally informed consumers
  making purchasing decisions based
  upon accurate and reliable information
  about the environmental attributes of
 products would encourage
 manufacturers to produce goods which
 nave fewer adverse environmental
 impacts.
   To affect a shift toward more
 environmentally benign products three
 things must occur: First, manufacturers
 need to produce products which are
 better for the environment; second,
 consumers need to be provided
 accurate, reliable, and meaningful
 information concerning the
 environmental attributes of these
 products; and, third, consumers need to
 preferentially purchase these products
 We are starting to see manufacturers
making products with fewer adverse
environmental impacts. In many cases
however, consumers are not being
                                                                                                                 49993
    provided reliable and meaningful
    information about the advantages of
    these products, partially because of the
    lack of national consensus on the
    meaning and use of environmental terms
    in advertising and labeling. Consumers
    cannot know how to interpret and use
    the information they receive until
    consumers, manufacturers, and
    government speak a common language
    Our failure to speak the same language
    in environmental marketing is creating
    problems both for manufacturers who
    are producing and attempting to market
    environmentally oriented products, and
    consumers who are seeking to purchase
    them.
     Some manufacturers who have made
    legitimate attempts to improve their
   products by reducing then-
   environmental impacts are unsure how
   to promote  the environmental benefits of
   their products. They are concerned
   about criticism and liability for false or
   misleading advertising if they advertise
   environmental benefits in the absence of
   clear and uniform standards or,
   conversely,  they face a potential loss of
   market share if they do not  advertise
   environmental benefits and then-
   competitors do.
    Meanwhile, because manufacturers
   are making claims based upon differing
   standards, consumers often  do not know
   what the claims mean, and this creates
   some consumer confusion and suspicion
  of environmental claims. Environmental
  claims are a  special class of claims
  because consumers typically lack the
  scientific expertise to assess the validity
  of the claims that marketers  are making
  The increasing numbers of
  environmental claims bombarding
  consumers with information  on
  competing environmental impacts, e g
  ( source reduced" or "recyclable" versus
   biodegradable," compounds these
 problems. Also, some highly aggressive
 marketers may make confusing and
 even misleading environmental claims,
 further adding to consumer confusion.
   Initial attempts to address this
 situation have come from State
 governments;  for example, several
 States, including New York, California,
 and Rhode Island, have passed
 legislation or issued regulations which
 provide standard definitions or
 guidelines for  the use of the terms
 "recycled" and "recyclable" (and other
 terms). While individual State action
 has been part of an important  first step
 to help define and shape the issue, as
 well as begin the initial consensus
 building process between government,
 industry, and consumers, the definitions
 and guidelines developed at the State
government level are not necessarily
     consistent and compatible with each
     other. As more States adopt regulations
     or pass laws to address the issue of
     environmental marketing, national
    marketers or distributors may find
    themselves in a situation where they
    will either have to target advertising for
    each State, which could be prohibitively
    expensive, or will stop advertising the
    environmental benefits of their products
    altogether,
      Recognizing the limitations of an
    uncoordinated State-by-State response
    to the issue, some State organizations
    have begun to address the issue of
    environmental marketing at national
    and regional levels. A task force
    compromised of the Attorneys General
    from eleven States has formulated
    guidance for environmental marketing,
    which are contained in the Green Report
    II—Guidance for Responsible
    Environmental Advertising. This report
   not only contains guidance for
   environmental marketing, but also calls
   upon the Federal government to adopt
   national standards for environmental
   marketing claims used in the labeling,
   packaging, and promotion of consumer
   products. At the regional level, the
   Northeast Recycling Council, an
   organization comprised of State
   environmental officials from ten
   Northeastern States, has developed
   consensus guidelines for the use of the
   terms "reusable," "recycled content"
   and "recyclable" in product labeling.
   These consensus guidelines could be
   adopted by all ten of the member States
  in an effort to achieve regional
  coordination.
    If national consensus over the use of
  these terms is not reached in the near
  future, we face the danger of losing a
  valuable tool for educating the public
 f and influencing the production and use
  of more environmentally oriented
  products. Consumers may come  to
  distrust or ignore all environmental
 claims, and national manufacturers and
 marketers may become so hamstrung by
 conflicting State standards that they
 avoid making these claims completely.
 B. Federal Role
   The U.S. EPA, the U.S. Office of
 Consumer Affairs (USOCA), and the
 Federal Trade Commission (FTC)
 recognize the opportunity presented by
 environmental marketing for improving
 the environment as well as the need to
 avoid misleading or deceptive
 environmental claims. They also
 understand the need for Federal
 involvement to address this issue at the
 national level. These three agencies
 have joined to form a Federal Task
Force to provide a coordinated and

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                 Federal Renter / Vol. 56. No. 191  /  Wednesday. OctoberJ^1991 / Notices
49994
cohesive national response to the issue
of environmental labeling and marketing
claims. The members of the Task Force
will work together to help ensure that
consumer, advertising, and
environmental issues are addressed
through a coordinated national effort.
  The Task Force is intended to
enhance and coordinate, rather than
supersede, environmental marketing
activities currently taking place in each
individual agency. Environmental
marketing claims may potentially be
addressed by one of a combination of
several approaches: FTC industry
guides, FTC case-by-case enforcement,
 EPA Guidance for specific terms, and
 more general guidance,  issued by EPA
 or jointly by the Task Force, that applies
 to a category of claims. The Task Force
 will coordinate agency efforts so the
 appropriate mix of approaches is used
 to address the commonly used or most
 problematic claims.
   As an initial step to address a key
 subject in this area, EPA is developing
 guidance for two terms related to
 recycling of materials from solid waste:
  "Recycled" and "recyclable," and for
  the use of the recycling emblem. This is
  a topic of much consumer and business
  interest, and these terms  are two of the
  most frequently used environmental
  claims.
    The FTC held hearings on July 17 and
  18,1991, to gather information to assist
  them in determining whether they
  should develop industry guides for the
  use of environmental marketing claims.
  If FTC should decide to go forward with
  developing industry guides in the future,
  EPA will share the information we are
  gathering with them, which may serve
   them in the development of the industry
   guides. EPA stands ready to assist FTC
   in any way possible to ensure that the
   environmental policy needs  discussed in
   this notice are addressed in an effective
   and coordinated way by the guides. If
   FTC should decide not to develop
   industry guides, EPA will publish the
   recommendations as its guidance to
   industry and consumers.

   C. Purpose of Today's Notice
     Today's notice solicits comment on
   options for guidance  to be used by
   marketers in product labeling and
   advertising promoting the use of
   recycled materials and recyclable
   materials. EPA will hold a public
    meeting to hear oral comment from
    interested parties on the options
    outlined in this notice.
                                       D. Goals and Objectives of EPA
                                       Voluntary Environmental Claims
                                       Guidance
                                         EPA has two overriding goals in
                                        addressing "recycled icontent" and '
                                        "recyclable" claims: We want to
                                        encourage the trends toward (1) the
                                        increased use of recycled materials in
                                        products and (2) the increased recovery
                                        of materials for recycling. These goals
                                        will be advanced by facilitating the
                                        communication between consumers and
                                        marketers as to which products contain
                                        recycled materials content and which
                                        products  are recyclable. By doing this
                                        we will help to'restore consumer
                                        confidence in environmental marketing
                                        claims. (We recognize that improved
                                        labeling practices need to be
                                        supplemented by strong educational
                                        programs' to help the general public
                                        understand and actively participate in
                                        recycling.) We also want to insure that
                                        all companies making "recycled
                                        content" and "recyclable" claims
                                        operate on a level playing field: One
                                        company should not be  able to gain a
                                        market advantage over  another
                                         company by promoting its product as
                                         something the product is not. This will
                                         help to ensure that companies making
                                         legitimate environmental improvements
                                         to their products will benefit from the
                                         increased consumer demand for
                                         environmentally oriented products,
                                         fostering the desire on the part of
                                         marketers to provide consumers with
                                         more environmentally oriented products

                                          II. Definitions
                                            The following definitions are used in
                                          the notice. These definitions are,
                                          intended to serve as guidance to
                                          marketers and to help educate
                                          consumers. In formulating these
                                          definitions, EPA has reviewed statutory
                                          and regulatory definitions from the
                                          Resource Conservation and Recovery
                                          Act (RCRA). However, the definitions
                                          stated here may not parallel those found
                                          in RCRA. For example, whereas the
                                          RCRA definition for "post-consumer
                                          material" is applicable primarily to
                                          paper and paper products, EPA has
                                          broadened that definition for purposes
                                          of this guidance so that it is applicable
                                          in more situations. In choosing the
                                          definitions to include in the notice, we
                                          have recognized that many of the RCRA
                                           definitions apply to government
                                           procurement of materials with recycled
                                           content, and procurement policy issues
                                           might differ from the issues we are
                                           addressing in this notice.
                                             The term "home scrap" means those
                                           scrap materials, Virgin content of a
                                           material, or by-products generated from,
and commonly reused within, an
original manufacturing process.    _
  The term "post-consumer materials"
means those products or other materials
generated by a business or consumer
that have served their intended end  •
uses, and that have been recovered from
or otherwise diverted from the solid
waste stream for the purpose of
recycling.                   '
  The term "pre-consumer materials"
means those materials generated during
any step in the production-of a product,
and that have beeii recovered from or
 otherwise  diverted from the solid waste
 stream for the purpose of recycling, but
 does not include those scrap materials,
 virgin content of a material, or by-
 products generated from, and commonly
 reused within, an original manufacturing
 process.
   The term "product" means goods or
 commodities that are created by, or are
 an end result of, a manufacturing
 process. For the purpose of this       .
 guidance, packaging is included in this
 definition.
    The term "recycled materials" means
 pre-consumer materials and post-
  consumer materials, and does not
  include home scrap.
    The term "recyclables" means
  products  or materials that can be
  recovered from or otherwise diverted
  from the  solid waste stream for the
  purpose of recycling.
    The term "recycled content" means
  the portion of a material's or product s
  weight that is composed of pre-
  consumer and post-consumer materials.
    The term "recycle" means the series
   of activities, including collection,
   separation, and processing, by which
   products or other materials are
   recovered from or otherwise diverted
   from the solid waste stream for use in
   the form of raw materials in the
   manufacture of new products other than
   fuel for producing heat or power by
   combustion.
     The term "recycling rate" means the
   percentage by weight of a given product
   or material category that is recycled.
     We are soliciting comment on whether
   the definitions listed in this section are
   accurate and complete for the purpose
   of this guidance, and will, if commonly
   adopted, result in less confusion among
   manufacturers, marketers, and
    consumers concerning recycled content
    and recyclable claims. We are also
    soliciting comment on whether we
    should  include other terms which would
    help manufacturers communicate with
    consumers concerning the use of
    recycled and recyclable materials.

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      The number of Americans served by
    recycling collection programs has grown
    rapidly in the past several years. Over
    30 million Americans are now served by
    curbside recycling collection programs,
    and this numb-^ \expected to continue
    to growing'      \syears. The
    success"          \lingprograms
    deP'"                ^ty to collect
    ma'.                  ^se materials.
    Whu                   \ can be the
   mosti                  \ga
   recyclin^              otential problem with
      C\ ^^  n t" claims concerns
                '- vague, potentially
                , ide little
                $k 'ers. Concerns
 * * •  ^ «£» ~>    *f> 1* broad
state,  <2x *2*^   O.  ^  ,cn as -Made
                    -   \ecycled
       ,
  Content^
                              ; the
 consumers wX*.  ^^  '•<&-   tion
 for the stateme\ •  VA
 These statements
 products containing              ^,
 to 100% recycled con,
 consumers care about
 recycled materials in a\
 is a likely assumption thav
 consumers would also be cK
 about the amount of recycled-,
 and would generally prefer as\
 recycled content as feasible. To\
 these concerns, EPA is examining^
 following three options for recycled
 content claims guidance.           \

 A. Option 1: Disclosure of Recycled
 Materials Content
  In order to make statements
concerning the use of recycled materials
more meaningful, EPA is considering
recommending that marketers who
advertise the use of recycled materials
in a product prominently and clearly
state the percentage by weight of
recycled materials in the product. For
     example, an aluminum can
     manufacturer that uses 50% recycled
     materials by weight to produce an
     aluminum can could advertise the use of
     recycled materials by making a
     statement such as "Recycled Aluminum:
     contains 50% recycled materials." No
     minimum threshold for recycled content
     would be set or recommended under this
     option.
      This option meets two needs. First,
     the consumer will be provided with
    useful and accurate information. By
    placing the percentage of recycled
    materials on the product, the consumer
    will be informed of the use of recycled
    materials, and the relative amount of
    recycled materials in the product.
    Second, this will provide consumers
    with the opportunity to choose products
    containing higher amounts of recycled
    material, thereby potentially creating
    competitive pressures to increase the
    amount of recycled materials content in
    products in order to meet consumer
    demand.             ,
     One disadvantage to this option is
    that it relies heavily upon consumer
   knowledge of and demand for goods
   produced with recycled materials. If
   consumers do not understand the
   meaning of the terms used or the
   recycled content percentage, then this
   information could have little effect upon
   the amount of recycled materials used.
   EPA requests comment on this issue and
   any data concerning consumer
   understanding of these terms.
   B. Option 2: Minimum Content
   Standards

     EPA is also considering a
   recommendation that marketers should
  promote the recycled content of a
  product or packaging only if the product
  or packaging meets a specified minimum
  percentage of recycled content. With
  this option, EPA would recommend
  Cither (1) a generic minimum content
    tndard for all products (e.g., all
     *ucts should meet a 25% minimum
       'ed content standard before being
        ••d as containing recycled
          nr (2) a series of standards
           naterials or product
             •?., aluminum beverage
               'Id meet a 50% standard,
                1 meet a 30% standard).
                  commend that
\                -rfse standards before
 1\           Jse of recycled materials.
   \    .-'c)ltl nas several advantages. If
 the K xidards were commonly adopted,
 it would provide consumers with the
 knowledge and assurance of a minimum
 threshold of recycled content when they
 see content claims. This option could
 increase the amount of recycled

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                 Federal Register /  Vol. 56.  No. 191  /  Wednesday. October 2.  1991 / Notices
materials used, if the minimum
percentages were set sufficiently high
that some manufacturers would need to
increase the amount of recycled
materials they put in products in order
to meet the standards. The option would
solve the major disadvantage of Option
1, because it does not rely as heavily on
consumer knowledge of and demand for
increased amounts of recycled materials
use to determine recycled content levels,
because these levels will be set by the
Administrator.
   EPA's Guidelines for Federal
Procurement issued under section 6002
of RCRA provide recommended
standards for government purchases of
goods containing recovered materials.
EPA could use these standards as a
                                  40
£tC£\ UUUiU US1C U1GO& «**»****,**»»«•	—
starling point for setting the standards
under this option. (See, for example, 4C
CFR part 250.) EPA is requesting
comment on whether the "Procurement
Guidelines" provide suitable minimum
content standards for this guidance.
  One disadvantage with this option is
that it would not distinguish between
products whose recycled content is
barely above the standard and those
products that are greatly exceeding the
standard. Because marketers would not
necessarily state the amount of recycled
materials content, this option also would
not provide consumers with information
they could use to choose products with
larger amounts of recycled materials
 content. This option would likely entail
high standard setting costs to EPA, as
 well as the need for ongoing evaluation
 of the use of recycled materials in
 products, and periodic revision of the
 guidance in order to encourage  greater
 use of recycled materials. Also, it is not
 clear that a commonly accepted, sound
 basis exists for setting content
 percentages across many products.
 Finally, industry could view the
 standard not only as the minimum level
 of recycled content, but also as the
 ceiling, resulting perhaps in less than
 desired recycled material use. This may
 occur because industries may have little
 incentive to go beyond the minimum
 standard.
  C. Option 3: Minimum Content
 Standards and Disclosure
    EPA is also considering
  recommending a combination of options
  1 and 2 which would [1) discourage
  marketers from promoting the  use of
  recycled materials content unless they
  meet or exceed a specified niinimum
  content standard, and (2) state the
  percentage by weight of recycled
  materials in the product.
    The advantage of this option is that
  consumers would be provided
  information concerning the percentage
of recycled materials used in a product,
which would allow thfem to choose
products with higher percentages of
recycled material content, and they
would be ensured a minimum threshold
of recycled content. Ijowever, this
option would have disadvantages
similar to the previous option in regard
to costs, the burden pf ongoing
evaluation, and the difficulty in
establishing optimum minimum recycled
content standards.

D. EPA's Preferred Option
  EPA's preferred option for the use of
 "recycled content" cjaims is Option 1:
 Disclosure of Recycled Materials
 Content, whereby a marketer would
 prominently disclose the percentage
 recycled materials content as part of
 any "recycled content" claim.
   Unlike the other two options which
 require EPA to establish standards, this
 option would offer tyw costs to
 government, would avoid the need for
 EPA to oversee development and
 implementation of minimum content
 standards, and would not set standards
 that could be viewed as a ceiling by
 industry or be considered as arbitrary
 by observers.
    Marketers following this guidance
 would provide consumers with
  information on the percentage of
  recycled content in their products.
  Consumers can use this information as
  part of their purchasing decision,
  potentially creating competition among
  manufacturers to meet consumer
  demand for recycled content. EPA
  believes that many; marketers could
  respond quickly to [consumer demand,  .
  rapidly increasing ):heir use of recycled
  materials.
  E. General Issues Relating to "Recycled
  Content" Claims
                                           In this section we will present two
                                         important issues which cut across all
                                         three of the 'options for guidance that
                                         EPA is considering. EPA is seeking
                                         comment on both of these critical issues.
                                         The first issue relates to the definitions
                                         of "recycled materials" and "recycled
                                         content." In the proposed definitions we
                                         have defined "recycled materials" as
                                         including both pre- and post-consumer
                                          materials. This approach was taken for
                                          three reasons. First, it is not clear
                                          whether consumers understand the
                                          difference between pre- and post-
                                          consumer materials. The broader, more
                                          inclusive definition may be simpler and
                                          thus more effective. Second, some pre-
                                          consumer wastesiwhich are currently
                                          being disposed can be recovered. Efforts
                                          to recycle such materials through
                                          consumer marketing can help alleviate
                                          local disposal problems. Third, it is not
clear whether the distinction between
pre- and post-consumer waste can be
tracked efficiently by producers and
brokers handling a variety of waste
streams.                        ,
  Other parties, however, have made
the case that encouraging use of post-
consumer materials is desirable,
because post-consumer materials are
relatively more difficult to collect,
separate, and process than pre-   :
consumer materials have been  •-'- y
traditionally recycled more commonly.
For these reasons, they argue that the
recycling of post-consumer materials
should be encouraged more aggressively
than the recycling of pre-consumer
materials, or, at the very least, the
 percentage of post-consumer material
 content should be specifically stated
 when communicating the use of recycled
 materials. Some examples of this
 position are-the State of California s law
 which requires the use of 10% post-
 consumer material content before a
 claim of recycled content can be made,
 the recommendation of the ad-hoc
 Committee on Environmental
 Advertising of the National Association
 of Attorneys General that marketers not
 call pre-consumer materials "recycled,"
 and the Northeast Recycling Council's
 recommendation that marketers
  separately label the percentages of pre-
  and post-consumer materials along with
  any recycled content claim.
    EPA would like to receive comment ^
  on whether defining "recycled content"
  to include both pre-consumer and post-
  consumer materials, or to include only
  post-consumer materials, will best
  promote increased consumer
  understanding regarding this issue. EPA
  would like to receive comment on
  whether a recommendation to state pre-
  and/or post-consumer materials content
  will lead to increased amounts pf
  materials diverted from incinerators and
  landfills. Does information exist that
   demonstrates the effects on solid waste
   disposal of substituting post-consumer
   materials for pre-consumer materials?
   Will a preference for post-consumer
   materials result in the substitution of
   post-consumer materials for pre-
   consumer materials and not lead to a
   reduction in the total amount of
   materials destined for disposal? EPA
   also solicits comments on the feasibility
   and costs of differentiating and
   monitoring post-consumer materials
   content in various manufacturing
   processes.
     The other issue for which EPA is
   seeking comment concerns the
   calculation of recycled content, another
   important issue which cuts across all
   three options. Several approaches to

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   calculating recycled content could be
   used, the difference between the
   approaches largely having to do with the
   amount of time over which the recycled
   materials use is counted. EPA's
   Procurement Guidelines for paper and
   paper products are very prescriptive in
   this regard, requiring that manufacturers
   meet the standards on a batch-by-batch
   basis, while EPA's Procurement
   Guideline for insulation products bases
   the calculation upon a monthly mass
   balance of recycled to virgin materials
   used. The State of New York calculates
   the percentage of recycled materials as
   being "that proportion of a package or
   product weight that is composed of
   recycled materials as demonstrated by
   an annual mass balance of all
  feedstocks and outputs of the
  manufacturing process." EPA is seeking
  comment as to what type of accounting
  system is most appropriate for consumer
  products claiming the use of recycled
  materials. Should we be recommending
  a batch-by-batch, monthly, or annual
  accounting? Are there other accounting
  issues that we should be considering?
  IV. Options and Guidance for
  Recyclable Marketing Claims
   As more and more Americans
  participate hi recycling programs, the
  recyclability of products which they
  purchase is increasingly important.
  Many Americans want to participate in
  recycling programs and do their part to
  help reduce the amount of waste sent to
  landfills and waste combusters. In order
  to participate they need to know which
  materials are collected locally and how
  these materials need to be prepared for
  collection.   •
   The most reliable source of
 information on what materials are
 collected locally is the local public or
 private organization sponsoring the
 program. These organizations,  however,
 often do not have funds sufficient to
 allow them to mount a comprehensive
 public education campaign. As a result,
 consumers often look for information
 wherever they can find it, and some are
 looking to product labeling and
 advertising to learn whether a product
 can be recycled.
   Unfortunately for consumers,
 recyclability claims are seldom of much
 assistance in helping them recycle in
 then- own communities, because these
 claims are not typically based on
 community availability of recycling
programs. Observers have noted that for
many consumers, recyclability is
determined by the availability of
collection programs  for the product in
their community; however, marketers
commonly make "recyclable" claims in
order to inform the consumer that the
   product, if collected, can technically be
   processed and used, without regard to
   whether an individual has reasonable
   access to programs that actually collect
   the product for use. Because of the
   mismatch between many consumers'
   understanding of "recyclable" claims
   and some marketers' use of "recyclable"
   claims, we face a situation where some
   consumers are losing confidence in the
   validity of "recyclable" claims and in
   environmental marketing claims in
   general.
    Guidance can help marketers better
   communicate the recyclability of
   products to consumers, and can help
   avoid a loss of consumer confidence in
   the validity of "recyclable" claims. We
   believe that communication will be most
   facilitated by guidance that helps to
   qualify "recyclable" claims, so that such
   claims reflect the availability of
   collection and  use programs for the
  product, and provide information that
  the consumer can use to recycle the
  product.
    Guidance can also address the
  problem created by marketers making
  "recyclable" claims for products which
  are recycled at very low rates, creating
  a situation where companies that make
  commonly "recyclable" products
  compete with companies that do not do
  so. EPA supports the efforts of
  companies which have taken concrete
  and productive steps to improve the
  recyclability of their products by using
  materials that are commonly collected
  for recycling, eliminating materials
  incompatible with recycling processes,
  and supporting  the development of
  recycling infrastructure. We would like
  to see companies who have made
  changes or who have supported
 recycling reap the benefits of then-
 efforts through increased sales and
 profits in the marketplace. Ideally,
 guidance would facilitate fair
 competition between marketers that
 would increase the use of readily
 "recyclable" products.
   The following sections outline the
 approaches EPA is considering in
 formulating guidance for the use of
 "recyclable" claims.

 A. Option 1: Minimum Recycling Rate
 and Recycling Rate Disclosure
  This option has two elements. EPA
would recommend that marketers
promote the recyclability of a product
only when (1] the product is recycled at
a minimum percentage nationally, and
(2] the product prominently discloses the
national recovery rate for the material
or product.
  The minimum recycling percentage
rate would be set by the Administrator.
The minimum recycling percentage rate
   could be set either at a high level to
   aggressively promote recycling or at a
   lower level to provide a minimum
   threshold to prevent trivial recyclable
   claims by marketers of products that are
   not widely recycled. The minimum
   recycling percentage rate could either be
   set on a material-by-material basis (e.g.,
   aluminum should meet a 30% standard]
   or a product-by-product basis
   [aluminunvcans should meet a 50%
   standardjfEPA is requesting comment
   on the most appropriate method for
   setting minimum recycling percentage
   rates. We are also requesting comment
   on criteria appropriate for setting a
   minimum recycling percentage rate.
    For products that meet the minimum
   percentage, the recycling rate would be
   disclosed in product labeling and
   advertising in a statement along with
   the recyclable claim. For example, the
   statement could read: "Recyclable.
   Glass containers are recycled at a 20%
  rate nationally." EPA would like
  commenters to provide information
  concerning the availability of reliable,
  current national recycling rates for
  recycled materials and the feasibility of
  using this information on product
  labeling and advertising in a timely
  manner. Also, what role should EPA or
  others play in overseeing the
  determination and use of such rates?
   This option would help to meet EPA's
  objectives of improving communications
  concerning environmental marketing
  claims. The option helps to ensure that
  marketers do not make misleading
  "recyclable" claims, by establishing a
  minimum  threshold before such a claim
  could be made. It would also provide
  consumers with comparative
  information on national recycling rates
  which could be used as a basis for
  choosing products, and help foster
 competition between marketers to
 increase the use of highly recycled
 materials in products.
   EPA acknowledges that unless the
 recycling rate threshold was set at a
 very high level, this option would not
 discourage marketers from labeling or
 advertising their products as recyclable
 in some communities where the product
 or material is not collected. Another
 drawback to this option, similar to that
 described in the "recycled" options,
 would be the difficulty in establishing a
 commonly  accepted,  sound basis for
 determining the appropriate recycling
 rate standard for any given material,
 and the high cost to the Agency of
 setting the standard.

B. Option 2: Qualified Claims

  "Recyclable" claims are often made
based upon differing definitions of

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recycling. "Recycle" as EPA would
define it in section II of this notice,
means the series of activities, including
collection, separation, and processing,
by which products or other materials are
recovered from or otherwise diverted
from the solid waste stream for use in
the form of raw materials in the
manufacture of new products other than
fuel for producing heat or power by
combustion. Therefore, in order for a
material to be considered fully
"recyclable," it must be collected,
separated, processed and used. If
marketers were to link "recyclable"
claims with information on access to
collection and use programs, the linkage
could eliminate much of the  confusion
relating to recyclability claims.
   With this option, EPA would
 recommend that marketers make
 "recyclability" claims: (1) That do not
 lead consumers to assume that the
 product is recyclable everywhere; and
 (2) that provide consumers with
 information that helps them recycle the
 material. "Recyclable" claims meeting
 these criteria are claims that EPA
 considers to be "qualified."
   An example of a qualified claim could
 be: "This bottle can be recycled in
 communities where collection facilities
 for colored HDPE bottles exist. For more
 information contact your local recycling
 coordinator." Examples of qualified
 claims currently exist in the
 marketplace. For example, a label on a
 plastic bottle claims: "This bottle is
 made  with PETE. It is the same plastic
 used to make soft drink bottles and is
  the most commonly recycled plastic. If
  your community has a recycling program
  that collects all products with a [SPI
  code 1] symbol, please recycle this
  container. To get more information on
  how to encourage plastic recycling,
  write  us at the following
  addressilAddress]." Qualified claims
  help marketers communicate with
  consumers in a manner that would lead
  consumers interested in recycling
  products to take constructive steps  to do
   so. The qualified claims could also avoid
   the current situation where "recyclable"
   claims often seem to have little meaning
   to many consumers because the claims
   appear to be nothing more than hollow
   advertising.
     Use of qualified claims under this
   option would not, however, limit the
   claims to those marketers whose
   products  are recycled at high rates.
   These claims, therefore, could be used
   by marketers of products that are
   recycled at very low rates and in a
   limited number of locations in the
   country. We see this as the major
   drawback to this option.
  EPA is seeking comment on a number
of issues related to this option. First of
all, are the criteria we have set for a
"qualified" claim appropriate and
sufficient to provide useful information
to consumers? What additional criteria,
if any, should EPA include? Second,
would use of these criteria reduce the
number of misleading claims? Would
they encourage recovery of recyclable
materials?
C. Option 3: Qualified Claims and
Disclosure of National Recycling Rate
  This option would consist of two
recommendations: marketers would
make "qualified" claims, as described in
Option 2, and also prominently disclose
the national recycling rate of the product
or material for which the claim of
recyclability is being made. For
 example, a glass bottle could make the
 claim: "The bottle recycled in
 communities where collection facilities
 for colored glass bottles exist. For more
 information contact your local recycling
 coordinator. Glass ;bottles are recycled
 at a 20% rate nationally."
   This option has all of the advantages
 of the previous option. The additional
 disclosure of the national recycling rate
 is designed to  address the major
  concern we have With the previous
  option: Differentiating the claims of
 products commonly recycled from the
  claims of products that are not
  commonly recycled. While any marketer
  could make a  qualified claim of
  recyclability under this option, it will
  encourage marketers who are
  considering making claims for a product
  that is minimally recycled to think twice
  about whether they want to make a
  claim that reveals^ how little of their
  product is actually recycled.
    Aside from the issues related to the
  "qualified" claims and the  disclosure of
  national recycling rate that we
  discussed in the previous options, EPA
  is seeking comment on whether a
  combination of these two options is
  appropriate and Would accomplish
  EPA's objectives of helping marketers
  communicate the ,recyclability of
  products to consumers, avoiding a loss
  of consumer confidence in the validity
  of "recyclable" claims, and assisting
  companies who have made changes or
  who have supported recycling reap the
  benefits of their efforts through
  increased sales and profits in the
  marketplace.
  D.  Option 4: Minimum Recycling Rate,
   Qualified Claims^, and Disclosure of
  National Recycling Rate
     This option is a combination of major
   elements of Optipns 1 and 3: First, EPA
   would establish a minimum recycling
rate as described in Option 1. This
minimum would be a relatively low
level. Marketers would be encouraged
not to make claims of recyclability for
any products that did not meet this
minimal level of recycling. Second,
marketers whose products meet this
recycling rate would be encouraged to
meet the conditions outlined in Option 3.
  This option would have the
advantages of the previous option plus it
would set a minimum threshold that
would prevent the most trivial claims of
recyclability from being made.
   One disadvantage to this option is.the
 difficulty that EPA could have in
 defining meaningful criteria to set a
 minimum recycling rate. We are
 requesting comment on the appropriate
 criteria for determining a minimum
 recycling rate in the context of this
 option. We are also requesting comment
 on this option in general, and in
 particular whether the use of several
 elements in the claim could be confusing
 to consumers or difficult for marketers
 to apply.
 E. EPA's Preferred Option

   EPA's preferred option is Option 3:
 Qualified Claims and Disclosure of
 National Recycling Rate. We believe
 this option offers the best match
 between ease of implementation and
 meeting our objectives of improving
  communications of "recyclability,"
  avoiding a loss of consumer confidence
  in the validity of "recyclable" claims,
  and assisting companies who have
  made changes or who have supported
  recycling reap the benefits of their
  efforts through increased sales and
  profits in the marketplace.

  V. General Guidance        ;

  A. Use of Recycling Emblem

    The familiar recycling emblem (See
  Figure 1) was developed in 1970 in a
  national contest conducted by a paper
  products manufacturer. After the contest
  the recycling emblem was placed in the
  public domain and is now commonly
  used by marketers to represent both
  recyclability and recycled content use. It
   is recognized by much of the public as
   relating generally to recycling. An
   immediately recognizable symbol like
   the recycling emblem can be a useful
   tool in drawing the  attention of
   consumers to a product that contains
   recycled content or that is recyclable;
   however, more guidance on its proper
   use is needed in order to increase the
   effectiveness of its  use and to ensure
   that consumers understand its meaning.

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Federal Re
   56, No. 191  / Wednesday, October 2. 1991 / Notices
                                                                                                           48999
 Figure  1:   Recycling  Emblem
  The issue of when and how'the
recycling emblem should be used is
being addressed by some Stat
recommending that the emblem be used
with recycled content and recyclable
claims but the emblem be clearly
identified to reflect whether it
represents recycled content or
recyclability. It is likely that more States
will attempt to address this issue in the
future. In order to provide a consistent
national approach to the use of the
recycling emblem, EPA is offering the
following options for developing
guidance. These options are offered as
adjuncts to the guidance that EPA will
develop for "recycled content" and
"recyclable" claims. That is, EPA
believes that the approach ultimately
recommended for use of the recycling
emblem should be used in conjunction
with approaches ultimately
recommended for the terms "recycled"
and "recyclable," so that the emblem
and surrounding message are viewed as
a consistent claim providing necessary
information.
1. Option 1: Limit Use of Recycling
Emblem to Certain Recycling Claims
  The use of the recycling emblem has
expanded to environmental claims
unrelated to the use of recycled content
or recyclable materials. For example,
some marketers have placed the
recycling emblem on a package claiming
"Environmentally friendly product and
packaging," giving one the impression
that the recycling emblem also signifies
an overall "environmental goodness."
While this practice is not yet
widespread, we would not like to see it
spread as it would dilute the meaning of
the emblem. EPA is seeking comment on
this position. Do commenters think that
this emblem should be used for other
uses than signifying the use of recycled
materials or recyclability?
  Under this option, EPA would
recommend that the use of the recycling
emblem in product claims and
advertising be restricted to claims
involving the use of recycled content
and recyclability. This option would
limit the number  of different messages
that the recycling emblem would
communicate to consumers, avoiding a
situation where the emblem could be
used for so many different
environmental messages as to become
virtually meaningless.
  The recycling emblem is not used
exclusively for environmental claims.
For example, community recycling
programs will often use the recycling
emblem in brochures and advertising
notifying the public of the time and
location of recycling collection
programs. Recycling collection
companies use the recycling emblem on
the sides of collection trucks.  These uses
of the recycling emblem are entirely
appropriate, and  we do not intend for
the guidance to cover them.
  Another use of the recycling emblem,
albeit in a slightly modified form, is the
Society of the Plastic Industry's rigid
container plastic  resin coding system.
This coding system is meant to help
differentiate between different resin
types and encourage the recycling of  ..
plastic containers. Some form of the
resin coding system is required by law
ion over 30 States. EPA does not intend
that its guidance  cover the use of the
resin coding system, as long as the use
of the coding is consistent with that of
identification of resin and not an
environmental claim. For example, a
plastic bottle labeled with the code on
the bottom of the bottle would not be
covered under the guidance, but a
plastic cup with the emblem displayed
prominently on the side would be
considered to be  making an
environmental claim, and the  use of the
emblem in that circumstance should be
in accordance with EPA guidance.
  EPA is seeking comment on whether
other legitimate uses besides
communicating "recycled content" and
"recyclability" and those discussed
above exist for the recycling emblem,
what those uses are, and whether this
option should be  expanded to include
those uses.

2. Option 2: Use American Paper
Institute Guidance
  The American Paper Institute (API)
distributes camera ready copy of the
recycling emblem with the
recommendation  that manufacturers use
                                                            a version of the symbol consisting of
                                                            solid arrows within a black circle to
                                                            represent the use of recycled content
                                                            (See Figure 2) and another version with
                                                            the symbol appearing in outline form to
                                                            signify recyclability. (See Figure 3.) With
                                                            this option, EPA would recommend that
                                                            marketers follow the API guidance and
                                                            continue to use the two different
                                                            versions of the recycling emblem.

                                                             Figure 2:  API Recycled Content Emblem
                                                                                   miim
                                                            Figure 3:  API Recyclable Emblem
                                                              An advantage to adopting this option
                                                            is that the guidance has been developed
                                                            and used for a number of years, and we
                                                            would be promoting consistency by not
                                                            changing guidance and adding to the
                                                            confusion. We must note, however,
                                                            because the API guidance promotes the
                                                            use of two nearly identical emblems that
                                                            the guidance might not offer a solution
                                                            to increasing consumer understanding of
                                                            the recycling emblem. Consumers might
                                                            not be readily able to recognize that one
                                                            version of the emblem represents the
                                                            use of recycled materials while the other
                                                            represents recyclability.
                                                              EPA is soliciting comment on whether
                                                            adopting the API guidance would

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 50000
Federal Register /  Vol. 56, No. 191 /.Wednesday, October 2, 1991 / Notices
resolve the problems of consumer
understanding of the meaning of the
recycling emblem. EPA is also soliciting
information that marketers might have
concerning consumer understanding of
the recycling emblem as currently used.
                    3. Option 3: Clearly Label the Recycling
                    Emblem

                      Under this option, EPA would
                    recommend that marketers clearly label
                    the emblem with "recycled content" or
                    "recyclable," depending on the claim
they are making. An example of this can
be seen in Figure 4. This option.is an
attempt to address the concerns we
discussed in the previous section
concerning the ability of consumers to
differentiate between the two different
API emblems.
                      Figure  4:   Clearly  Labeled Recycling  Emblems
         RECYCLED CONTENT
                                                RECYCLABLE
  EPA is soliciting comment on whether,
in fact, this option would solve the
problem of consumer differentiation of
the two different claims. We are also
seeking copies of guidance that
organizations have developed to
address this issue.

4. EPA's Preferred Options for the Use
of the Recycling Emblem

  EPA's currently preferred options for
the use of the recycling emblem are a
combination of Options 1 and 3. Our
preference would be that marketers use
the recycling emblem only for "recycled
content" or "recyclable" claims, and
that they clearly label the emblem as
                    pertaining to "recycled content" or
                    "recyclable" claims,.
                      This option will help to promote
                    consumer understanding of the meaning
                    of the recycling emblem by encouraging
                    that the use of the recycling emblem be
                    limited to recycling claims, and by
                    helping to eliminate the confusion that
                    consumers are facing hi determining the
                    difference between-the "recycled
                    content" and "recyclable" emblems.

                    B. Separating Claims of Packaging and
                    Product          ',

                      The labeling and advertising practices
                    of some marketers do not always
                    differentiate between claims made
                    about the packaging and the product
contained within the package. Because
of this, consumers are not able to tell
when recycled content claims refer to
the packaging and when they refer to
the product. EPA is considering
recommending that marketers clearly
differentiate between recycled content
and the recyclability claims made about
the product and the packaging in order
to help reduce consumer confusion. We
request comment on this issue as well.
  Dated: September 22,1991.
Don R. Clay,
Assistant Administrator, Office of Solid
Waste and Emergency Response.
[FR Doc. 91-23709 Filed 10-1-91; 8:45 am]
BILLING CODE 6560-50-M

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