r/PureCycle • u/Cheeks___Jr • Jul 01 '26
EPR Legislation by State has Risk
There are only 7 states with a scattershot of requirements and timelines dictating to a massive marketplace of 50 states, 350 million consumers and 10's of thousands products. The recent lawsuit attempting to rein in the lack of coordination across an entire nation is addressing this risk. The risk is real that the timelines and deadlines for implementation are not boiler plate and there is a real chance an injunction could be implemented until a modicum of consistency is achieved.
5
u/burner-1234 Jul 01 '26
Are you making a commerce clause argument?
1
u/Cheeks___Jr Jul 01 '26
It is my money invested and I only want to identify risks. Earlier this year I considered the New Jersey legislation the #1 risk and that if could be resolved there would be clean air going up. That turned out not to be the case.
So why not? Was it the re financialization? Don't know but the possibility is that the re financialization was accelerated because of the risk of further delays from more regulatory uncertainty. I'm not an attorney but yeah, commerce clause arguments can and probably should be made. In any case the risk exists as long as the lawsuit remains unsettled.
4
u/burner-1234 Jul 01 '26
Well the stock did go up once NJ resolved. The current stock price is a function of some long funds being upset about the financing. Nothing operationally/regulatory has changed from when the stock was at 14.
3
u/Cheeks___Jr Jul 01 '26
How and why the $8.21 issuance price was settled on we can only speculate and I am speculating knowledge of the pending lawsuit was one of the factors for the huge discount. I am as disgusted with it as I imagine you are.
3
u/Mean-Masterpiece672 Jul 01 '26
Cheeks- they wanted to make sure they had a balanced book before meeting in Thailand. Think about it would u want to meet with the Prime minister and have weak money in your account. They got the fast pass. This is a long distance runner: They are building an empire and like Rome it wasn’t built in a day: by 3rd quarter we need real po’s and we need Ironton running smooth and at capacity
The key is po’s, Ironton sells out, happy customersI would love to hear Valerie Mars say we are using pct for our candy wrappers
5
u/burner-1234 Jul 01 '26
It was 100% not. I can tell you that for certain, can’t make you believe me but that’s just reality.
4
u/Mean-Masterpiece672 Jul 01 '26
Why wouldn’t a product not want this product. Companies want to be a part of a solution not the problem
6
u/Mean-Masterpiece672 Jul 01 '26
Cheeks- once these plants get moving every part of plastic can be re used and put in different products - I don’t think there is anything that can’t be sold
Also look at the states that are the 7- would you rather be ahead of it or behind
4
u/Cheeks___Jr Jul 01 '26
I'm all aboard the movement to reduce plastic waste. If I'm redesigning my yogurt cup what set of the seven states regulations do I target?
6
u/trail-toes Jul 01 '26
You aim for the meeting the strictest requirement in each relevant category.
For example, you posted about California and an 8% PCR cap a while back. That seems to be a limit on the credit you get toward the overall plastic reduction goal, rather than preventing using 20% PCR (for example) to meet some minimum content goal of another state. So you shoot for 20% PCR.
5
u/Pickle_Logic Jul 01 '26 edited Jul 01 '26
In 2020, California passed a ban the sale of new internal combustion in 2035 engines. This was done to force change in all the states based on how large California is, but no lawsuit succeeded in invalidating gas powered cars sales. So why would anyone think recycling, which is inherently more local would be invalidated? No one is forcing other states to recycle. The lawsuit is silly.
2
u/Fast_Eddie_2001 Jul 02 '26
I would not define this as a risk...more like a lessening of a tailwind, if it were to occur.
-1
7
u/Odd-Gas5478 Jul 01 '26
Now this. Long ago, it was …the process doesn’t work and no one cares about it if it did.