Extended Producer Responsibility (EPR): What You Need to Know & How to Stay Ahead
Extended Producer Responsibility (EPR) is transforming the packaging landscape, and businesses across the entire supply chain must adapt to these new standards. Seven states—Oregon, California, Colorado, Minnesota, Maine, Maryland, and Washington—have passed EPR bills, with Oregon set to collect its first fees in July 2025. As these regulations take effect, understanding how EPR works, who it impacts, and how your business can adapt is more important than ever. Read as we break down everything you need to know, from compliance strategies to the financial implications of packaging choices, ensuring you stay ahead in a rapidly evolving regulatory environment.
Who’s Responsible?
The financial responsibility under EPR programs falls on entities that choose the packaging and sell those packaged products in designated states. These entities are defined as “producers”—typically the brand owners rather than the packaging manufacturers. Producers are required to pay fees that fund the recycling of their packaging materials. EPR policies aim to shift demand toward sustainable packaging by influencing decision-makers rather than penalizing suppliers.
Why is EPR needed?
EPR is designed to address two key issues:
- Technically and financially hard-to-recycle packaging – EPR fees incentivize the use of recyclable materials over those that are difficult to process.
- Lack of funding for recycling infrastructure – The fees collected through EPR finance investments in recycling and consumer education.
How Does EPR Work?
Producers—companies that sell packaged goods into EPR states—pay fees to a producer responsibility organization (PRO). So far, the PRO in the U.S. is the Circular Action Alliance (CAA), a nonprofit, producer-led organization helping producers comply with EPR laws. The PRO collects these fees and allocates them accordingly. Fees paid for specific packaging materials are directed toward the collection, sorting, consumer education, and recycling of those materials.
Once received, states use these funds to invest in recycling infrastructure and educational programs. Ideally, this creates a circular economy where manufacturers have sufficient access to recycled materials to create new packaging—reducing reliance on virgin resources.
What Packaging is Affected?
All packaging materials are subject to EPR fees, including paper, plastics, metals, and glass. Fees are charged per pound and vary by material. The fees are based on how expensive it is to recycle a certain material. For example, paper, which has more robust collection, sortation, and established end markets will have lower fees than flexible plastics, which require more investments. All affected packaging will be more expensive; it's just a matter of how much more expensive.
Next Steps
- Understand your role in the supply chain: Your position in the supply chain influences how EPR laws apply to your business. Producers should review their packaging usage to prepare their usage reports, budget for EPR fees, and may choose to re-evaluate their packaging decisions. Packaging suppliers should be mindful of these motivators. As these regulations evolve, businesses should stay informed about potential reporting obligations and those of their customers.
- Prepare your data for compliance: To meet reporting requirements, producers must have a clear understanding of the materials and weights associated with their packaging. Packaging suppliers also need to be prepared to provide detailed weight and material data to support their producer-customers' reporting obligations. Establishing reliable data collection processes and identifying key touchpoints across the supply chain can streamline this effort. Proactive data management not only ensures compliance but also fosters transparency and trust between stakeholders.
- Stay informed on packaging trends. Because EPR fees are charged per pound, lightweighting is a powerful method of reducing EPR fees, reinforcing the principle of doing more with less. This approach encourages right-sizing solutions (such as reducing box sizes) transitioning from boxes to mailers, utilizing lightweight materials, and replacing rigid packaging (like jars) with flexible alternatives (such as pouches), all aimed at improving sustainable packaging design and reducing waste.
- Take a holistic approach to packaging decisions. EPR fees are just one component of a package’s total cost of ownership (TCO). When selecting materials, consider not just compliance and material costs, but also brand image, labor expenses, damage prevention, warehousing, and freight logistics. Packaging designs that reduce product damage rates remain a powerful lever to reduce cost and environmental impact.
We recognize that the rapidly evolving regulatory landscape can feel overwhelming. The Pregis Sustainability and IQ teams are a resource you can rely on—offering expertise and tools to help you incorporate EPR into your broader packaging strategy.
Connect with us to request a sustainability consultation. Our team can analyze your packaging operations and deliver data-driven recommendations that clarify regulatory requirements—without compromising total cost of ownership or packaging performance.
