U.S. Senate to introduce 20 cent-per - pound plastic fee

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U.S. Senate to introduce 20 cent-per - pound plastic fee

WASHINGTON, Sept. 29 - Reuters - U.S. congressional Democrats are considering including the first federal fee to tackle plastic pollution in the multibillion-dollar reconciliation bill, a proposal drawing opposition from the plastics and petrochemical industry.

Senator Tom Suozzi and Rep. Sheldon Whitehouse are in talks with other Democrats to include their REDUCE Act as a source of revenue in the reconciliation bill. It would impose a 20 cent-per-pound fee on new or virgin plastic for single use products such as plastic bags and beverage containers.

The proposal is among a slew of money raisers being considered by the White House and Democrats to pay for a package that includes provisions aimed at tackling climate change and expanding public safety net. The measure, which Democrats intend to pass without Republican support, is a pillar of President Joe Biden's domestic agenda.

White House officials declined to comment on the matter. But two sources familiar with the Biden administration's thinking said it is reluctant to back the plastics fee because it could drive up costs for consumers.

More than 90% of the plastic produced is either dumped or incinerated because there is no cheap way to use it, according to a recent study by researchers from UC Santa Barbara, University of Georgia and Woods Hole published in the journal Science Advances.

The REDUCE Act would compel plastic producers to use more recycled content and direct revenue toward a fund to support recycling and address plastic marine debris and other pollution.

That pollution chokes our oceans, threatens climate change and threatens the well-being of Americans, and it is the plastic industry that should cover the cost of the damage, Whitehouse said.

The American Chemistry Council ACC, representing some of the largest plastics and petrochemical companies, launched an ad campaign this month against the prospective fee, saying the measure would raise cost of consumer goods.

ACC spokesperson Matthew Kastner said the group has also been lobbying lawmakers to resist the idea and is beginning to engage with the White House.