What is Extended Producer Responsibility?
Extended Producer Responsibility (EPR) refers to laws that shift the cost of waste management to “producers” of single-use packaging. Since 2021, 7 states enacted EPR laws, which means that any company above a certain size that sends single-use packaging into one of those states is required to pay a volume-based fee.
Who does this affect?
“Producers” are the brand-owners or importers responsible for selling certain types of packaging into a market.
Producers can be any type of company:
Brand Owner: The company whose name, logo, or trademark appears on the packaging supplied into the state.
Licensee / Importer: If the brand owner is outside the U.S., the importer or licensee placing the packaging on the state market is the producer
Retailer / Distributor: For private-label goods, the retailer (e.g., Walmart, Target) is the producer.
E-commerce Seller: Company that sell directly to households under their own brand are considered producers.
Currently laws exist in 7 states: California, Colorado, Maine, Maryland, Minnesota, Oregon, Washington. Laws have been introduced in 11 other states, including 2 red states (North Carolina and Tennessee). If all 11 states pass, 43% of US demand will be covered
What are the revenue thresholds for Producers?
Revenue thresholds vary by state. See table:
California (SB 54): $1 million gross in-state revenue
Colorado: $5.5 million gross revenue or <1 ton covered materials
Maine: <$2 million gross revenue or <1 ton packaging
Maryland (SB 901): $2 million global gross revenue or <1 ton covered material
Minnesota (Packaging Waste & Cost Reduction Act / HF 3911): $2 million global gross revenue or <1 ton covered material
Oregon (Recycling Modernization Act / SB 582): $5 million gross revenue or <1 ton covered products
Washington (Recycling Reform Act / SB 5284): $5 million global revenue or <1 ton covered material
What types of packaging count towards EPR laws? What types of packaging are excluded?
The laws generally cover these types of packaging:
Consumer: boxes, bags, wrappers
Foodservice: cups, clamshells
E-commerce: polymailers, tape
Composite: juice boxes, foil pouches
Excluded packaging includes the following:
·Medical: blister packs, infant formula
Reusables: kegs, totes, refillable bottles
Hazmat: pesticides, paints
Industrial: pallets, drums
How are fees determined?
States determine fees based on several factors, including recyclability, post-consumer recycled content, source reduction/reuse, and problematic or complexity of design.
How much are the fees?
States can issue daily or per-violation fines (often $1k–$10k daily). Fees are levied based on volumes sold into the state by material:
Paper: $0.03 to $0.43 per lb
Plastics: $0.17 to $1.43 per lb
Glass: $0.10 to $0.64 per lb
Metals: $0.06 to $0.98 per lb
Wood: $1.54 to $2.10 per lb
What can I do?
Get in touch with The CF Team and we’ll handle the baselines through compliance, so you can stay focused on your business
