Extended Producer Responsibility: Managing Consumer Packaging Costs

New packaging-based Extended Producer Responsibility (EPR) laws are being adopted in a growing number of states. While EPR laws cover a broad range of products and materials, from batteries to mattresses, this article focuses on consumer packaging.  In a linear waste model, packaging is used for a product and then heads to a landfill after it is removed by a consumer. Think of the soft plastic bags used for frozen veggies. Most municipal recycling systems cannot handle soft plastic, so they end up in the trash. Recycling systems return a portion of the packaging to the packaging manufacturer as raw material. Cardboard boxes are an example; the paper industry has a high recycling rate and is focused on continuing to improve it. According to the American Forest & Paper Association, in 2024, nearly half of recycled paper went into making containerboard. Glass is an example of a packaging that can be made circular. Glass bottles can be melted down and remade with no material degradation, so potentially all glass can be kept in the packaging cycle. If glass or more easily recycled plastic packaging can be substituted where high barrier packaging is required, and plastic can be replaced by paper and paperboard where possible, more material stays in the packaging cycle. Moving from a linear economy to full “Circularity” is the goal of EPR laws.

What are Packaging EPR Laws?

EPR laws transfer the cost of consumer product packaging disposal and recycling from states and municipalities to the products’ producers. These laws generally do not apply to the companies that make the packaging materials, but to the companies using the materials to package their products. Numerous states are introducing these laws to ease their financial burden from municipal waste disposal and recycling, and to encourage producers to use less packaging or more easily recyclable packaging for their products.

As of December 2025, seven states (California, Colorado, Maine, Maryland, Minnesota, Oregon, and Washington) have some kind of packaging-based EPR law in place. The types of waste covered under each state’s EPR law vary. In 2024 and 2025 eleven more states (Connecticut, Hawaii, Illinois, Massachusetts, Michigan, Nebraska, New Jersey, New York, North Carolina, Rhode Island, and Tennessee) introduced packaging-based EPR bills.¹

These EPR laws generate funds, through fees imposed on the producer, intended to support the costs of municipal recycling programs, product-specific recycling programs, improvements to material recovery facilities, and recycling education programs. Producers’ fees are based on the costs for recycling or disposal of the packaging, quantity of material introduced to the market, and the toxicity of the materials. This structure provides financial incentives for brands to reduce packaging, use more easily recycled materials, or incorporate more post-consumer recycled content in their packaging. Lower fees are associated with packaging materials that stay in the packaging cycle. The goal is for packaging to be a circular material stream.

Who is Affected By Packaging EPR Laws?

In general, the “producer” defined in these laws is not the manufacturer of the packaging material, but the company whose logo appears on the packaging. Aa an example,  a “producer” is defined as “[t]he legal owner of a brand for a product sold, offered for sale, or distributed in the state. ” ² This means that the EPR packaging costs generally fall to the owners of brands rather than the original material manufacturers.

In some cases, the wholesaler or distributor can be the one to pay the fees. In 2025 the National Association of Wholesalers-Distributors (NAW) sued the State of Oregon arguing that Oregon’s EPR law was unconstitutional. NAW argued that this unfairly charged fees to out of state distributors rather than manufacturers. NAW also questioned the constitutionality of regulatory authority being in the hands of a private organization, in this case the Circular Action Alliance. Federal Judge Michael Simon granted a preliminary injunction on February 6, 2026, relieving distributors of the fees pending a jury trial to be held in July 2026.³ This trial will be closely watched for its effect on other states’ Packaging EPR laws.

How Do EPR Laws Work?

In many states, producers are encouraged or required to join a Producer Responsibility Organization (PRO). These are organizations that track producers’ packaging use and the assessment and collection of fees. Producers are required to submit a detailed inventory of the amount and types of packaging used in the state, and the PRO determines what the cost of each type of material is. The PRO bills the producer for their share of the state’s packaging waste. The PROs distribute the fees collected to municipalities and recycling companies to offset waste disposal costs. The Circular Action Alliance (https://circularactionalliance.org/) is an industry-founded PRO selected by several states with emerging EPR laws.

Packaging EPR laws have typically been introduced with a phased implementation approach. For example, Colorado passed an EPR bill in 2022 and it was phased in over several years. In May 2023, the state designated the Circular Action Alliance as the state’s PRO. Producers were given time to develop inventories of their packaging materials, build relationships with the PRO, and make changes to packaging based on expected fees. Under this rule, the first Packaging EPR reports in Colorado were due July 31, 2025.[4]

Common components of Packaging EPR laws include:

• De minimis exemptions for companies selling less than around $2 million to $5 million of products in the state;
• Exemptions for packaging of products like medication, infant formula, or essential agricultural products;
• Exemptions for packaging that never reaches the consumer (e.g., pallet wrap or pallets);
• Fees, which pay for the PRO’s administrative fees and the full cost of non-commercial curbside collection;
• Enforcement measures, which run from fines for non-compliance to producers being banned from selling in a state;
• Reduced fees for “Eco Modulation” such as high post-consumer recycled content in packaging or materials that are more easily recycled.

Companies need to develop thorough inventories of the types and volumes of their packaging of products distributed in a given state, and submit them to the PRO. This inventory lets the PRO assess how much financial burden the company brings to the state’s waste management services based on their products’ cost for recycling or disposal in landfills. This detailed data reporting helps companies see what they are using and connects the cost for disposal to the product’s packaging. The inventory also helps producers identify opportunities for improvement and savings; for example, packaging in cardboard rather than shrink wrap could reduce EPR fees.

What Do I Need To Do?

Companies need to prepare for these EPR laws now. ALL4 recommends companies start this preparation process by doing the following:

• Find out if states where you sell products have passed or introduced a packaging-based EPR law. Most states are phasing in the programs, so there is usually time before fees begin and penalties are incurred.
• Determine if your product is covered by the EPR laws in the corresponding state. (Please note that exemptions and de minimis thresholds vary by state.)
• Develop an accurate inventory from your packaging suppliers. ALL4 can help by providing detailed questionnaires for your suppliers that will facilitate easy reporting.
• Prepare for reporting deadlines in states where your products are sold.

EPR laws are being adopted across the country and can be very complex to track. ALL4 is continuing to track the current and emerging packaging-based EPR laws throughout the United States. It is important for owners of consumer brands to be prepared for these laws and understand how their business will be affected. ALL4 can help with identifying EPR law applicability and developing EPR reports. For inquiries about ALL4’s services or follow-up questions regarding EPR regulations, please contact Cambre Codington at ccodington@all4inc.com or your ALL4 Project Manager.

¹https://epr.sustainablepackaging.org/policies

²https://circularactionalliance.org/general-faq

³ https://www.centraloregondaily.com/news/regional/oregon-recycling-modernization-act-judge-blocks-producer-fees/article_bca0b9e7-7407-47fb-b86c-7ab9bd631e31.html

⁴https://cdphe.colorado.gov/hm/epr-program