EPR Laws for Packaging in the United States: Where Are We Now?

27. June 2024

Under Extended Producer Responsibility (EPR) laws for packaging, producers in the United States are obligated to join Producer Responsibility Organizations (PROs), report packaging data, and pay fees in order to sell products in (or into) certain states.

What is Extended Producer Responsibility for Packaging?

Extended Producer Responsibility (EPR) is an approach to environmental policy that holds “producers” accountable for the entire packaging lifecycle in which their products are sold and/or shipped.

EPR laws levy fees against producers based on how much packaging (and what type of packaging) they put on the market in a given jurisdiction: the more packaging (and the less sustainable it is), the higher the fees a producer will pay. Fees paid by producers support the infrastructure needed to manage packaging waste, including collection activities, recycling, public outreach, and final disposition.

In this way, EPR leverages financial incentives to encourage producers to minimize their environmental impact, reduce waste, and use more sustainable materials in their packaging – and at the same time, EPR laws relieve local governments of some (or even all) of the financial burdens of waste management for packaging.

Who Has Obligations to Report Packaging Data? What Entities Are Considered Producers?

In EPR, the definition of “producer” can vary depending on state laws. However, “producer” typically includes any entity that is a brand holder, licensee, or anyone that manufactures, sells, imports, or distributes products in or into a jurisdiction with EPR laws for packaging.

That said, not all producers will have obligations to report packaging data and pay fees under EPR laws. Most states have established a hierarchy of producer responsibility so that only one producer in a given product’s supply chain will be considered the “obligated producer” for that product. To understand if your business is considered to have compliance obligations, you may want to request an EPR assessment.

Obligated producers generally include:

  • Manufacturers: Organizations that manufacture products sold to either businesses or consumers.

  • Brand Owners: Companies that own the brand under which the product is sold, regardless of who manufactures the product.

  • Brand Licensees: Companies that sell products under a brand license.

  • Importers: Organizations that import products into the US for sale.

  • Distributors: Organizations that distribute products within the US.

  • Retailers: Can be considered producers if they sell under their own brand or import products.

Which US States Have Enacted EPR Laws for Packaging?

The movement toward EPR in the US is gaining momentum, with five US states having passed EPR laws for packaging. Each state’s approach is unique, but most have the same sustainability goal: to reduce packaging waste and increase recycling – supported by producer funds.

The EPR experts at RLG anticipate that the number of states passing packaging EPR laws will continue to increase over the coming years. Maryland and Illinois, for example, have passed needs assessments in order to gain a clearer understanding of the current state of packaging waste management, as well as a pathway for recycling improvements. These needs assessments are generally regarded as precursors to formal EPR laws for packaging.

States that have already passed packaging EPR laws (at the time of this publication) are:

  • California

  • Colorado

  • Maine

  • Minnesota

  • Oregon

At the time of this publication, producers who potentially have obligations are encouraged to register with the Circular Action Alliance (CAA), an approved PRO in California, Colorado, and Oregon.

Summary of California’s Packaging EPR Law: Senate Bill 54 (SB 54)

California’s packaging EPR law, Senate Bill 54 (SB 54), also known as the Plastic Pollution Prevention and Packaging Producer Responsibility Act, passed in 2022 and is overseen by California’s Department of Resources Recycling and Recovery (CalRecycle).

The law requires obligated producers to join a Producer Responsibility Organization (Circular Action Alliance [CAA]), report packaging data, and pay EPR fees. California’s EPR law has been designed to reduce waste by encouraging source reduction, but it will also fund environmental pollution mitigation, with producers expected to contribute 5 billion US dollars over ten years.

Key Timelines for California’s EPR Law for Packaging: House Bill 22–1355

  • July 1, 2024: CAA’s deadline for obligated producers to register

  • August 2025: Producers to report packaging data to CAA

  • April 2026: CAA target date to release fee schedule

  • January 2027: CAA and statutory producer fee obligations deadline

What Producers Need To Do To Comply With Packaging EPR Laws in the United States

To meet their obligations, producers must gather key attributes of packaging placed on the market in relevant jurisdictions and report that data to PROs. Producers must then make payments to PROs based on fee structures.

Producers who rely on classic office spreadsheets find that gathering and collating packaging data is laborious, error-prone, and time-consuming. Retailers, especially those with white label or store brands, will need to gather packaging data from their suppliers and then verify that data to ensure no overpayments on EPR fees are made.

In the same way that businesses hire accountants and payroll companies, many producers prefer to outsource packaging data management and compliance activities to experts rather than handle the work internally.

How RLG Helps Producers Gather, Verify, and Report Packaging Data

As part of the Reconomy family, RLG has over 30 years of experience assisting the world’s most iconic brands with packaging EPR data management and compliance.

Our packaging database holds over 50 million SKUs that can be used to fill data gaps, verify data accuracy, compare SKUs, and more. Access plans currently start at a flat rate of less than $1,000.

Producers with a solid handle on their data and who do not need data management assistance may benefit from RLG’s environmental compliance services. Our compliance experts can handle registrations, submit reports, review invoices, and manage payments across jurisdictions where producers may have obligations.