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Americans dispose of approximately 1.3 billion gallons of used motor oil annually, but only about 800 million gallons get recycled, and most of that is burned as fuel rather than re-refined into new oil. The plastic packaging oil comes in is more problematic: most curbside programs won’t accept them because residual oil contaminates other recyclables. What happens when the companies that make motor oil embrace extended producer responsibility (EPR) laws that require recycling the oil and the containers it comes in? David Lawes, CEO of the Lubricants Packaging Management Association (LPMA), is leading what could become a national model for extended producer responsibility. Colorado just became the testing ground. In September 2024, five major oil companies—BP Lubricants, Chevron, ExxonMobil, Shell, and Valvoline—founded LPMA as an independent producer responsibility organization.

Colorado gave producers a choice: join the Circular Action Alliance, which manages all packaging and printed paper recycling in the state, or develop their own sector-specific program that demonstrates better outcomes. LPMA chose the independent path, arguing that petroleum packaging requires specialized handling that general-purpose programs can’t provide efficiently. Lawes brings two decades of EPR policy experience to the role, including a decade regulating EPR programs in Canada. The program he ran in British Columbia achieves a 96% recycling rate for oil containers—compared to less than 1% in most U.S. states. “This is not about skirting the law or finding an easier pathway,” Lawes explains. “It is about meeting the same results in an industry-friendly way.”

If Colorado’s model works, it could reshape EPR programs nationwide. We discuss why petroleum packaging can’t be managed through curbside programs, what lessons from Canada’s more developed EPR system apply here, and whether the U.S. needs national recycling standards to harmonize the patchwork of state regulations. You can learn more about LPMA at interchange360.com.