What is EPR?

Extended Producer Responsibility (EPR) shifts the cost and responsibility of managing packaging waste from consumers and local governments to the producers themselves. Under EPR laws, companies must report the types and amounts of packaging they place on the market and pay fees to help fund recycling, waste collection, and recovery systems. Fees are determined based on the cost of recycling each specific material within the jurisdiction, with higher costs for materials that are harder to recycle or more harmful to the environment.

The goal is to hold businesses accountable for the environmental impact of their packaging across its full lifecycle, encouraging more sustainable design, material choices, and end-of-life solutions. This contrasts with traditional systems, where consumers and municipalities bore the burden of disposal, giving producers little incentive to minimize waste or improve recyclability. EPR helps drive a more circular economy by aligning financial responsibility with environmental impact.

Why EPR Matters

Extended Producer Responsibility (EPR) is a vital policy for environmental sustainability. It tackles waste by reducing landfill reliance, shifting financial responsibility to producers, and promoting smarter, circular product and packaging design.

• Waste reduction: EPR drives a circular economy by recovering, recycling, and reusing materials, ultimately boosting recycling rates and shrinking packaging's environmental footprint.

• Reduced public spending: By making producers financially responsible for waste management, EPR lessens the load on local governments and taxpayers. This frees up public funds and incentivizes producers to innovate for efficiency.

• Design Innovation: EPR encourages companies to design packaging with its entire lifecycle in mind. This rewards sustainable materials, improved recyclability, and minimal waste, leading to greener solutions, better brand image, and long-term savings.

How EPR works in practice

While EPR implementation may have minor state-level variations, its core framework remains largely consistent nationwide. There are three major components, which are broken down below. 

1. Reporting: Companies first determine if they meet the criteria to be considered obligated producers. If so, they must register and report the types and weights of packaging materials they place on the market in each state.

2. Fee Calculation: Fees are assessed based on factors such as the material type, weight, recyclability, and disposal cost. For example, Oregon’s fee schedule includes over 60 distinct packaging materials.

3. Payment: Producers pay into a centralized system, typically managed by a Producer Responsibility Organization (PRO). The PRO is responsible for distributing funds to municipalities and recycling facilities to support waste management infrastructure. In most states, the designated PRO is the Circular Action Alliance (CAA), a nonprofit formed by 20 major producers to coordinate compliance and system administration.

Current EPR implementations

While packaging EPR is still emerging in the U.S., it’s well-established in other regions such as Canada, the EU, and parts of Asia. U.S. states have adopted EPR policies for other product categories, such as electronics, paint, and batteries, and are now rapidly expanding EPR to cover packaging.

As of now, seven U.S. states have passed some form of packaging EPR legislation:

• California:  “Plastic Pollution Prevention and Packaging Producer Responsibility Act”

• Colorado:  “The Producer Responsibility Program for Statewide Recycling Act” 

• Maine:  “The Extended Producer Responsibility for Packaging Act” 

• Maryland: “Environment - Packaging and Paper Products - Producer Responsibility Plan”

• Minnesota:  “Packaging Waste and Cost Reduction Act” 

• Oregon: “Plastic Pollution and Recycling Modernization Act”

• Washington: “Improving Washington's Solid Waste Management Outcomes”

These laws differ in structure and timelines, but all aim to shift the financial and operational responsibility for packaging waste from taxpayers to producers, supporting more sustainable packaging systems nationwide.

Packaging EPR Deadlines By State (so far)

Implications for producers

As packaging EPR laws roll out across the U.S., businesses must quickly adapt to new regulatory, data, and financial requirements. On a high level, this is what producers are expected to do: 

1. Determining their producers’ status: Companies must assess whether they qualify as an “obligated producer” based on factors like brand ownership, importation, or sales model. Each state has different criteria to determine producer status and eligibility for exemptions.

2. Navigating regulatory complexity: Packaging rules, reporting timelines, material exemptions, and fee schedules vary by state. Producers must monitor evolving requirements to avoid missed deadlines and ensure accurate, state-specific compliance.

3. Collecting and reporting data: Producers must track detailed data on the types and amounts of packaging materials sold in each state. However, packaging data is often fragmented, incomplete, or inaccurate. Many companies might not even be tracking the required data in their enterprise ERP systems. Producers must assess data availability early to plan for resource needs.

4. Planning for eco-modulation bonuses: Many EPR programs include eco-modulation, offering fee reductions or bonuses for using more recyclable, reusable, or compostable packaging. While appealing, adopting these changes may require upfront investment. Producers must conduct cost-benefit analyses to determine whether these incentives justify the transition.

5. Optimizing for costs and compliance: EPR directly adds to operating costs. Beyond complying, companies must also proactively rethink packaging design, exploring alternative materials, formats, and weights to reduce fees. Long-term success requires scalable data systems, internal ownership, and cross-functional coordination to keep pace with changing regulations and minimize financial costs.

Looking Ahead

Packaging EPR is rapidly taking hold across the U.S., bringing new obligations for producers: from registering with PROs, like the Circular Action Alliance (CAA), to reporting packaging data, and managing associated fees. While navigating compliance can be complex, it also presents an opportunity for companies to lead in sustainability, reduce waste, and improve packaging efficiency. Preparing now will help companies stay ahead, mitigate risk, and create lasting value.