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Recent regulatory changes, specifically the Resource Conservation and Recovery Act (RCRA) guidance for hand sanitizers and the new hazardous waste regulations in California, are sparking changes across the industry. Here are a few key takeaways and guidance on how to chart these regulatory waters.

It's important to stay vigilant in understanding and complying with these  regulatory changes. But remember -- we're here to chart these waters with you and for you. Reach out to our team at any time with questions at regulations@smarterx.com  

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Understanding RCRA and Hand Sanitizers

The U.S. Environmental Protection Agency (EPA) has revised its stance on the RCRA industrial ethyl alcohol exemption as it relates to alcohol-based hand sanitizers. The previous interpretation treated unused alcohol-based hand sanitizer as regulated hazardous waste but this is now likely to change, with the EPA allowing generators of unused alcohol-based hand sanitizer to consider energy recovery as a disposal path.

• In the wake of possible changes, retailers should confirm their disposal practices comply with TTB and EPA regulations. The Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations apply to recycling of industrial ethyl alcohol. Therefore, retailers should make sure their disposal partners abide by these rules. If unused alcohol-based hand sanitizer is being recycled then the generator must comply with the RCRA legitimacy factors in 40 CFR 260.43.

• For suppliers, make sure to evaluate your disposal process. Unless you are managing unused alcohol-based hand sanitizer as RCRA regulated hazardous waste,  the material must be treated as a valuable commodity when it is under your control. Additionally, you should ensure that your waste hauler understands whether the material is hazardous waste or intended for reclamation. The latest EPA interpretation, published May 5 2023, allows generators of unused alcohol-based hand sanitizer to  consider energy recovery. Reclaimed ethanol can be used as a fuel or fuel additive and can be burned for energy recovery within the U.S., as long as all applicable TTB regulations and RCRA legitimacy factors are complied with throughout the reclamation process. 

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Navigating California’s New Hazardous Waste Regulations

In response to California Senate Bill 158, the Department of Toxic Substances Control (DTSC) will now be developing new Hazardous Waste Management Reports and Plans every three years. The bill's primary goals are to establish a baseline understanding of hazardous waste management, identify data gaps, and make plans to fill these gaps.

• With this process change in mind, retailers should take the time to engage with it. You have the opportunity to provide input during the planning process, which may be a valuable chance to express any concerns or potential impacts to business operations. Also, stay updated! Keep abreast of legislative updates, especially regarding potential changes in waste management hierarchy, as it could affect the strategies to reduce hazardous waste generation.

• For suppliers, take the time to align your operations. The new regulations emphasize waste reduction, recycling, and treatment before disposal. Suppliers must ensure their operations align with this hierarchy. Also, participate in and prioritize data collection. As the DTSC seeks to fill data gaps, suppliers may have the opportunity to contribute meaningful data and potentially influence the direction of future waste management strategies in California. And finally, plan for stricter standards. With less than 19 percent of hazardous waste tracked in California classified as hazardous under federal criteria, expect California's regulations to be stricter. Suppliers should be prepared for more stringent rules and broader scopes of hazardous waste identification.

Let’s face it – CPG regulations can be convoluted. They are often (necessarily) filled with complexity and nuance that don’t make it easy to decipher how exactly they may affect you and the products you sell. 

We know how important it is for you to stay up-to-date with anything that could impact your business. That's why we're here to fill you in on some interesting updates that we're keeping a close eye on. These recent updates cover four main areas: DOT PHMSA International Harmonization (HM-215Q), Vermont HB 67, and Washington SB 5144, and MOCRA. So, let's dive in.

DOT PHMSA International Harmonization (HM-215Q)

Get ready for some positive changes: The Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) has proposed a rule (HM-215Q) that will make your life easier. The new rule was proposed in May, and is likely to be finalized by EOY. Here's what you need to know:

• Button cell batteries: Good news. You'll still need to test button cell batteries installed in equipment, but you won't have to worry about sharing the Test Summary (TS) report anymore. It's a small change, but it means less paperwork and more streamlined compliance for you.
• Lithium battery markings: Say goodbye to the phone number requirement on the lithium battery mark. This simplification will make labeling lithium batteries easier and removes confusion from the supply chain. 
• PSN and ID8000 updates: There are a few minor updates to the Proper Shipping Name (PSN) and ID8000. These updates will help you properly identify and ship hazardous materials. It's essential to stay informed about these changes to ensure you're on the right track when it comes to shipping regulations.

Vermont HB 67

‍Vermont has some interesting legislation in the works, and it's something you'll want to pay attention to. The legislation was delivered on May 12th and comes with 2025 implementation dates. Here's the lowdown:

• Funding the HHW program: The new law would require manufacturers and brands to step up and fund the Household Hazardous Waste (HHW) program in Vermont.
• Increased responsibility on the consumer for haz-waste vs. non haz-waste: This change could mean that the distinction between Haz-waste and Non-haz-waste would be as important to consumers, waste management entities, recyclers, and brands as it is to Retailers.
• Waste handling fees and brand responsibility: The legislation allows for waste handling fees, which will be redistributed to brands, and is typically based on their market share. Orphaned products (products without a brand owner) would be collectively covered by participating brands. 
• Exemptions and special considerations: The law includes exemptions for certain products like pesticides, cosmetics, drugs, certain paints, and already covered electronics and batteries. Make sure you're aware of these exemptions to avoid any compliance headaches. 

Washington SB 5144

‍Washington has also got some new regulations coming your way. The legislation was signed on May 11th by the governor, with 2027 implementation dates. Here's the scoop:

• Battery stewardship plan: If you are a “producer”of covered batteries or products containing them, you'll need to participate in a state-approved battery stewardship plan. It's all about responsible management and ensuring proper recycling and disposal.
• Who's a producer? The law broadly defines a producer as battery manufacturers, retail brands, third-party brands, licensees of a brand, importers, or anyone selling the product in the state. It's an inclusive, hierarchical definition to ensure accountability throughout the battery supply chain.
• Battery markings and compliance: although coming into force at a later date, “producers” shall supply, and retailers must collect, a certification that the covered batteries have the required "producer" marking along with the battery chemistry. Lawmakers are placing primary responsibility on the producer, but also require due diligence from retailers.

FDA's Modernization of Cosmetics Regulation Act of 2022

‍Although published at the end of 2022, there’s significant regulatory change coming that impacts the cosmetics industry:

• FDA regulations for fragrance allergen rules: The FDA is mandated to promulgate regulations for allergen rules within 18 months of December 29, 2023. Keep an eye out for these regulations to ensure your products comply with the new requirements.
• Fragrance allergen ingredient disclosure: Once the list of fragrance allergens is finalized, brands and manufacturers must disclose these allergens on the cosmetic product label . This means you may see changes in product labeling and information provided to customers.
• Does label disclosure equal FDA disclosure? While label disclosure is an important part of complying with FDA regulations, producers of cosmetic products must also register with the FDA and submit a Cosmetic Product Listing, which includes “...a list of ingredients in the cosmetic product, including any fragrances, flavors, or colors, with each ingredient identified by the name, as required under section 701.3 of title 21, Code of Federal Regulations (or any successor regulations), or by the common or usual name of the ingredient”.  Will this disclosure of information to the FDA be the same information required on the product label? The answer will impact the logistics of information transparency in the supply chain.

Staying informed about regulatory updates doesn't have to be overwhelming. These updates are here to make your life easier. So stay in the loop, adapt your processes as needed, and reach out to our team of experts with questions at any time, and check back next month for more updates. 

BOULDER, COLO., February 16, 2023 – Smarter Sorting, a leader in using data to transform retail operations from compliance to sustainability, today announced the rebranding of Smarter Sorting to SmarterX^TM.

SmarterX^TM is a retail and consumer goods data company that provides product intelligence, regulatory classifications, and decisioning to retailers, consumer goods companies and the logistics industry. The product intelligence provided by SmarterX helps its clients make, move and market products in the most compliant, efficient, and sustainable ways possible. 

The company’s rebrand and new name follows a year of 3X growth. In 2022, the company added new clients from the retail and consumer goods industries, as well as developing new integrations with retail inventory software and non-profits such as Feeding America. At the same time, SmarterX has relocated its headquarters to Boulder, Colorado, a city known as a magnet for technology companies and sustainability entrepreneurs. 

“We’re proud of our roots and we’re passionate about our evolution.” said Jacqueline Claudia, CEO of SmarterX^TM. “From the start, we focused on helping companies and organizations comply with environmental regulations. Today, we’re achieving our early vision for the company to not only power better waste diversion but also help our clients and their partners, up and down the supply chain, be more efficient and more sustainable.” 

New APIs, including SmarterX’s unique Back of Store Solution (BOSS^TM) APIs, are helping retailers be more sustainable while reducing costs. Moreover, the company’s ability to send valuable data such as fast, accurate shipping classifications is helping companies make better choices when it comes to ecommerce, environmental impact, and supply chain automation.

Dave Andre who recently joined SmarterX as Chief Product and Technology Officer - and has extensive experience including Group CTO at Trustly and Founder & CEO at Cartera - noted that, “The new name, SmarterX, is fitting for a company that helps retailers, brands and supply chain partners in many unique ways make accurate real-time decisions for more sustainable and profitable business.” 

He went on to add, “Our extensive product data, including chemical formulation, computational chemistry analytics, and detailed rules engine, powers the many ways we’re helping our clients. From transportation to storage and from verifying ingredient-free claims to ensuring returns are sustainably handled, SmarterX enables enterprises to make mission-critical product handling decisions that are good for business and the planet.”

About SmarterX

Headquartered in Boulder, Colorado, SmarterX™, formerly known as Smarter Sorting, helps companies make better decisions to make, market, and move consumer products. Its customers include the world’s biggest CPG brands, leading warehouse clubs, big box retail, and national grocery chains. The company’s customers use its Product Intelligence Platform™ to gain product insights and identify how to best handle consumer products across the supply chain, to remain compliant, avoid fines, and reduce their environmental impact. The company has won awards for innovation and impact, including Fast Company’s World Changing Ideas and Most Innovative Companies, BuiltIn’s Best Place to Work, as well as a Real Leader Impact Award and the SEAL Sustainable Innovation Award. Smarter Sorting is an Unreasonable Impact company. Learn more at smarterx.com.

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Media Contact:‍

Natalie Rizk, SmarterX
press@smarterx.com