I bought a package of the Dream Green batting and want to use it for a baby quilt. Is there any reason why it can't be used for a baby quilt? I wasn't sure if the plastic bottles would be a problem. The batting feels nice and soft.

I used the Dream Green batting in a couple quilts for my granddaughters, and found no reason not to use it. It isn't fire-retardant but most battings and fabrics aren't. I ironed it just like cotton batting. And didn't have a problem. It's nice and light so it won't be to heavy for a baby also. And it quilted just like any other batting.

Be careful with your fabric choices when using Dream Green. If you have light colored fabrics, the green shows through like crazy.
Personally, I would not use it for a baby quilt. The whole fire retardant thing is more important to me.

I never thought about it being fire retardant or not. I'll have to check and see if the other batting I have it. Does anyone know what battings ARE fire retardant?

There are some marketed specifically as fire-retardant. I think Warm and Natural has one - Warm and Safe, maybe? However, (it's been discussed here before) the fire-retardant chemicals are toxic. You may not want to use it.

I read somewhere that once it's washed it's not fire retardent anymore.

It takes many washings for the flame retardants to wash out.

I haven't bought any b/c what I saw was very expensive! YIKES!

Now I'm torn on what to do. I was making the baby quilts to sell on artfire. I'm not sure what to use in the center then! Maybe flannel?

I think you'll be OK with any all natural fiber. I'd be more concerned about a polyester batting or fabric melting immediately than I would worry about cotton or wool smoldering and smoking if it was exposed to high enough heat.