Extended Producer Responsibility (EPR): Requirements, State Laws, and Compliance Guide

Extended Producer Responsibility (EPR) shifts the cost and management of product end-of-life from municipal governments and taxpayers to the manufacturers, importers, and retailers who place those products on the market. Once a niche environmental policy concept, EPR is now one of the fastest-growing areas of product compliance regulation — with seven US states having enacted mandatory packaging EPR laws as of 2025, and the EU requiring EPR schemes across product categories as part of the European Green Deal.

For companies selling into multiple US states and the EU simultaneously, EPR obligations are becoming a material compliance burden. This guide covers what EPR actually requires, which laws apply where, what fees and registration deadlines look like, and what product and supply chain data companies need to manage.

What Is Extended Producer Responsibility?

EPR is a policy instrument that makes producers — typically defined as brand owners who first place a product or packaging on the market — financially responsible for its collection, sorting, and recycling at end of life. Instead of relying on municipal recycling budgets (funded by local taxes), EPR creates an industry-funded system where the cost of managing waste follows the product back to its source.

Most EPR programmes operate through Producer Responsibility Organisations (PROs) — typically nonprofit entities established by industry that collect fees from producers, contract recycling infrastructure, and report performance data to regulators. Producers register with the PRO, report what they place on the market, and pay fees based on the volume and material type of packaging or products covered.

The core logic of EPR is that when producers bear recycling costs, they have a financial incentive to redesign products for recyclability — a principle called eco-modulation.

How EPR Works in Practice

Registration

Producers must register with a state-approved PRO (or, in some US states, submit an individual compliance plan directly to the state agency). Registration requires identifying the business entity, its role in the supply chain (brand owner, licensee, importer, or distributor), and the covered materials or products placed on the market within the state.

Supply Reports

After registration, producers submit periodic supply reports documenting what covered materials they introduced into the state market during the reporting period. For packaging EPR, this typically means reporting by material type (HDPE, PET, glass, paper, fibre, flexible plastic, etc.) and by weight or unit. Accurate reporting requires knowing the material composition of all packaging — which for companies with complex supplier networks means collecting packaging specifications from multiple tiers of the supply chain.

Fees

PRO fees are calculated based on supply report data. Fee rates vary by material type and recyclability. Materials that are costly to recycle (flexible plastics, multilayer laminates) attract higher fees than readily recyclable materials (glass, aluminium, certain paper grades). Eco-modulation provisions in some states further adjust fees based on recycled content — rewarding producers who use post-consumer recycled materials with lower rates.

Collection and Take-Back Performance

In most EPR models, the PRO contracts collection and processing infrastructure and is responsible for meeting recovery rate targets set in law. Individual producers are not directly managing collection logistics. California is an exception: SB 54 (2022) places direct performance obligations on producers — 30% recycling by 2028, 40% by 2030, and 65% by 2032 — not just fee obligations.

US State EPR Laws — Packaging

As of May 2025, seven US states have enacted comprehensive packaging EPR laws. Each has a distinct timeline, PRO structure, and scope.

• Maine (LD 1541, July 2021) — The first US packaging EPR law. Unusually, Maine's model has producers reimburse municipalities directly for waste management costs rather than funding a PRO-run programme. Rulemaking is in progress; producer registration expected May 2026.
• Oregon (SB 582, August 2021) — The most operationally advanced US programme. Producers were required to register with Circular Action Alliance (CAA) by April 30, 2025. Sales restrictions for non-registered producers take effect July 1, 2025.
• Colorado (HB 22-1355, June 2022) — Producer registration deadline October 1, 2024 (past). Sales restrictions apply July 1, 2025. Colorado's programme is run through a PRO approved by the Colorado Department of Public Health and Environment.
• California (SB 54, June 2022) — The broadest US packaging EPR law in scope. Permanent regulations approved May 1, 2026 and now in effect. Producers must register by June 1, 2026 via one of three pathways: joining Circular Action Alliance (CAA) and submitting supply data; registering independently with CalRecycle via the PEPRS (Packaging Extended Producer Responsibility System) portal; or claiming a small producer exemption through CalRecycle. CalRecycle estimates more than 5,700 producers are in scope. Sales of EPS (expanded polystyrene) food service ware are already prohibited since January 1, 2025. Long-term targets: 65% recycling rate and 25% reduction in single-use plastic by 2032. Penalties up to $50,000/day for non-compliance.
• Minnesota (HF 3911, May 2024) — Producer registration deadline July 1, 2025. Programme launches with a PRO model; sales restrictions begin January 1, 2029.
• Washington (SB 5284, May 2025) — Newly enacted. Registration deadline July 1, 2026. Sales restrictions from March 1, 2029.
• Maryland (SB 901, May 2025) — Newly enacted. Registration deadline July 1, 2026. Rulemaking pending; full programme details to follow.

Most states define "producer" as the brand owner who first places covered packaging on the market in the state. Importers become producers if no US-based brand owner is identifiable. Small producers are typically exempt below threshold volumes (specific thresholds vary by state and are set in rulemaking).

US EPR Beyond Packaging

Electronics (E-Waste)

More than 25 states have electronics EPR laws requiring manufacturers to fund take-back, collection, and recycling of covered electronic equipment — typically computers, monitors, televisions, and printers. California's Electronic Waste Recycling Act charges consumers a point-of-sale fee that funds the system. New York's Electronic Equipment Recycling and Reuse Act (enacted 2010) requires manufacturers to register and meet collection targets.

Paint

PaintCare, a stewardship organisation funded by paint manufacturers, operates paint take-back programmes in more than 40 US states and jurisdictions under state product stewardship laws. Architectural paint manufacturers are required by law in participating states to fund the programme through a fee on paint sold.

Batteries

California's Lithium Battery Recycling Act (SB 1215, signed 2022) requires manufacturers of covered lithium batteries to register with CalRecycle and fund a take-back programme. At the federal level, the Battery and Critical Minerals Recycling Act (introduced but not yet enacted as of 2025) would create a national programme. Several states have individual battery recycling deposit or take-back requirements.

Mattresses, Pharmaceuticals, and Other Products

State-level EPR programmes also cover mattresses (California, Connecticut, Oregon, Rhode Island, and others), pharmaceuticals and sharps (many states), and pesticide containers. The scope of covered products under EPR is expanding as legislators recognise the model's success in packaging and electronics.

EU EPR Requirements

The EU operates mature, mandatory EPR systems across multiple product categories. Unlike the US patchwork, EU EPR is harmonised across member states — though national PRO schemes differ in structure and fee rates.

• Packaging and Packaging Waste Regulation (PPWR, EU 2024/3110) — Entered into force December 2024. Requires mandatory EPR for all packaging placed on the EU market by 2028. Establishes eco-modulation requirements (mandatory differentiation of PRO fees based on recyclability and recycled content) and introduces minimum recycled content targets for plastic packaging.
• WEEE Directive (2012/19/EU) — Requires manufacturers of electronic and electrical equipment to fund collection, treatment, and recycling. Producers must register in each member state where they sell, report annual put-on-market quantities, and meet national collection targets.
• Battery Regulation (EU 2023/1542) — Includes EPR obligations for battery producers, with collection rate targets phased in through 2030 (61% for portable batteries, 73% for LMT batteries, 51% for EV batteries by 2031). EPR obligations are linked to the Digital Product Passport requirements under the same regulation.
• End-of-Life Vehicles Directive (2000/53/EC) — Requires vehicle manufacturers to accept returned vehicles at no cost and fund recycling. Under review as part of the EU's circular economy transition.

Eco-Modulation: How Product Design Affects What You Pay

Eco-modulation is a core EPR mechanism that adjusts PRO fees based on the environmental attributes of a product or its packaging. Products designed with recyclability, recycled content, or reduced material complexity attract lower fees; those using difficult-to-recycle materials (multilayer plastics, mixed-material laminates, dark-coloured plastics that confuse sorting optical sensors) attract higher rates.

Oregon's programme, for example, modulates fees based on whether packaging is recyclable in the state's collection system, whether it contains recycled content, and whether it meets labelling requirements. California's SB 54 similarly ties compliance obligations to recyclability certification, with the ultimate goal of eliminating single-use plastics that cannot be verified as recyclable at scale.

For companies, eco-modulation creates a direct financial connection between packaging design decisions and regulatory compliance costs. It also creates a data requirement: to claim eco-modulation credits, producers must be able to demonstrate the recyclability certification, recycled content percentage, and material composition of their packaging — often requiring documentation from material suppliers.

What Companies Need to Do

1. Audit your producer status across jurisdictions. Determine in which US states and EU member states you are a "producer" under applicable EPR laws. This depends on where you first place covered products on the market, your supply chain position (brand owner vs. importer vs. retailer), and applicable revenue or volume thresholds.
2. Register with the applicable PRO before your deadline. Oregon and Colorado have immediate sales restrictions (July 1, 2025) for producers who have not registered. Missing these deadlines exposes you to sales prohibitions and financial penalties.
3. Collect packaging composition data from suppliers. Supply reports require material type, weight, and recyclability status for all covered packaging. This data must come from your packaging suppliers and your own manufacturing data — it cannot be estimated. For companies with complex or global supply chains, this is typically the most time-consuming step.
4. Build recurring reporting processes. EPR reporting is annual (or more frequent) and ongoing. Build it into your product data management and supplier engagement workflows rather than treating it as a one-time exercise.
5. Track legislative developments. Additional states are advancing EPR legislation (New Jersey, Illinois, and others have bills in progress as of 2025). Assume the list of states with EPR obligations will grow — build compliance infrastructure that can scale across jurisdictions.
6. Assess eco-modulation opportunities. Review your packaging portfolio against eco-modulation criteria in each state. Switching to certified recyclable formats or increasing post-consumer recycled content may reduce your PRO fee burden while also supporting sustainability commitments.

The Supply Chain Data Challenge

EPR compliance is fundamentally a data problem. Most companies can identify the broad categories of packaging they use, but the granular material composition data that EPR reporting requires — resin codes, material weights per unit, recycled content percentages, layered material specifications — typically lives in supplier systems, not in the brand owner's own databases.

Companies that have already built structured supply chain sustainability data collection processes — for Scope 3 emissions reporting, for EU Digital Product Passport compliance, or for product lifecycle assessments — are significantly better positioned for EPR reporting. The underlying data collection challenge is the same: you need verified material data from suppliers, and you need it in a format that supports multiple different reporting frameworks simultaneously.

Frequently Asked Questions

Does EPR apply to companies that sell products online into a state but don't have a physical presence there?

Yes. EPR laws apply based on where covered materials are placed on the market — typically where ownership transfers to the final consumer. Selling into a state via e-commerce counts. Remote sellers must determine whether they meet the registration threshold for each state.

What is the difference between EPR and a deposit-refund system?

A deposit-refund system charges consumers a deposit at point of sale, which is returned when the container is returned for recycling. EPR places the financial obligation on the producer (not the consumer) and is typically managed through a PRO. Some jurisdictions operate both: California's beverage container recycling programme (CRV) is a deposit system, while SB 54 creates a separate EPR obligation for packaging.

Can small businesses get an exemption?

Most packaging EPR laws include small producer exemptions based on annual revenue, quantity of covered materials placed on the market, or both. Specific thresholds are set in state regulations (not the laws themselves) and vary. Oregon's current programme exempts producers below defined de minimis thresholds; other states are still finalising exemption criteria in rulemaking.

Do EPR obligations apply to packaging used for B2B shipments, or only consumer packaging?

This varies by state. Most packaging EPR laws in the US focus on "covered materials" as defined in the legislation — which typically includes consumer-facing packaging but may also include shipping and transport packaging depending on the state's definition. Always review the specific statutory definition of "covered material" in each jurisdiction.