What Is EPR Packaging?
May 11, 2026 · 12 min read
Seven US states require producers to pay for their packaging waste. They call it Extended Producer Responsibility — EPR. If you sell packaged products in California, Oregon, Colorado, Minnesota, Maryland, Washington, or Maine, you may be legally obligated to register, report, and pay fees. Here's what that means, who it applies to, and what it costs.
What is EPR packaging?
EPR stands for Extended Producer Responsibility. It's a type of law that shifts the cost of packaging waste from taxpayers to the companies that put packaging into the market. Instead of municipalities paying for recycling through property taxes, the producer pays — based on the type and weight of packaging they sell.
Seven states have active EPR packaging laws. Three more have bills in progress. The laws vary by state, but the core idea is the same: if you put packaged products into commerce in these states, you have obligations.
The 7 active EPR states
What counts as packaging?
EPR laws cover more than you might think. It's not just product boxes — it's every layer of packaging that ends up in a consumer's hands or a recycling bin.
- Primary packaging — the box, bottle, or wrapper the product comes in
- Secondary packaging — the box around the box, hang tags, inserts
- Shipping/tertiary packaging — pallet wrap, shipping boxes, void fill, tape
- Food service ware — cups, containers, utensils (CA, OR, CO, MN)
- Component parts — labels, windows, caps, closures counted separately (CA)
California requires you to report the weight of each component part separately. The box counts. The label counts. The little plastic window on the box? That counts too. Yes, really.
What's not covered varies by state, but generally excludes: beverage containers already under bottle bills, packaging with a 70%+ recycling rate (CA), and products regulated under other programs.
Who is a “producer” under EPR?
Every state defines “producer” differently. That's not an accident — each law was negotiated independently. But the general rule follows a hierarchy:
- Brand owner — the company whose name or brand is on the product
- Licensee — if the brand owner is foreign, the company that licenses the brand for sale in the state
- Importer of record — if there's no brand owner or licensee in the US
- First distributor — if none of the above apply, whoever first sells the product in or into the state
Seven states. Seven different definitions of “producer.” Seven different exemption thresholds. Seven different fee schedules. The only thing they agree on is that you owe them money.
If you're a brand owner selling products into an EPR state, you're most likely the producer — regardless of where your company is headquartered. It's based on where the packaging ends up, not where your business is registered. Check if you're covered in 60 seconds.
Small business exemptions
Good news for smaller brands: every EPR state has a de minimis exemption. But the thresholds are different in every state, and they're not all measured the same way.
| State | Exemption Threshold | Measurement |
|---|---|---|
| California | <$1M | CA revenue only |
| Oregon | <$5M | Global revenue |
| Colorado | <$2M | Global revenue |
| Minnesota | <$2M or <1 ton | Global revenue or weight into state |
| Maryland | <$2M or <1 ton | Global revenue or weight into state |
| Washington | <$5M or <1 ton | Global revenue or weight into state |
| Maine | <$2M or <1 ton | Global revenue or weight into state |
Key detail: California measures California revenue only. Oregon and Washington measure global revenue. A $4M company doing $800K in California is exempt in CA but not in Oregon.
If you sell under $1M into California, you're exempt. If you sell $1,000,001, you owe fees on every pound of packaging you put into the state. That $1 difference just cost you — well, it depends on how much packaging you use. But it's a lot.
What does EPR cost?
EPR fees are not taxes. They're industry-funded fees that go toward recycling infrastructure. The amount depends on three things: which state, which material category, and how much packaging you sell by weight.
Three states are actively collecting fees right now: Oregon (July 2025), Colorado (January 2026), and California (early fees starting August 2026). The other four haven't published fee schedules yet.
Across the states with published rates, fees range roughly from $0.01 to $1.00 per pound of packaging, depending on the material category. Recyclable materials cost less. Hard-to-recycle materials cost more. That's eco-modulation — and it can shift your fees by 15-30% depending on your packaging choices.
For a mid-size brand with 500 tons of mixed packaging across multiple states, annual EPR obligations typically land in the $30K-$120K range. Estimate your fees with our calculator.
What is eco-modulation?
Eco-modulation is the credit-and-penalty system built into every EPR fee schedule. It adjusts your fees based on how recyclable your packaging is.
Switch to mono-material packaging? Up to 60% less per ton. Add 30%+ post-consumer recycled content? 5-15% category credits. Include recycling labels? 3-8% in Oregon, Colorado, and Washington. Source reduction — eliminating unnecessary packaging entirely? 20-35% off your fee base.
Two brands with identical packaging tonnage can pay 15-30% different fees depending on their material choices. Not because of what they sell. Because of what they wrap it in. See all 7 strategies for reducing EPR fees.
What is a PRO and do you need to join one?
A PRO — Producer Responsibility Organization — is the industry group that runs the EPR program in each state. It collects fees, manages reporting, and coordinates recycling programs on behalf of producers.
Six of the seven active states use the same PRO: Circular Action Alliance (CAA). California, Oregon, Colorado, Minnesota, Maryland, and Washington have all appointed CAA. Maine is still selecting its stewardship organization.
If you're a producer in a CAA state, you register with CAA, report your packaging data to CAA, and pay fees through CAA. They're not a government agency — they're an industry organization funded by producers. Learn more about PROs and how to register.
CAA wants you to succeed. But their website is written for compliance professionals, not first-time filers. The information is there. Finding it requires patience.
What happens if you don't comply?
Penalties are real and they're steep:
California — Up to $50,000/day
$50,000 per day per violation. $100,000/day for willful violations (CA PRC §42067).
Minnesota — Up to $100,000/day
The steepest penalties of any EPR state for repeat violations (MN Stat 115A.1462).
Oregon — Up to $25,000/day
Plus $500/day per violation for producers who fail to register (ORS 459A.931).
Colorado — Up to $25,000/day
$5,000-$20,000 initial penalty plus $1,500-$6,000/day for ongoing non-compliance (CRS 25-17-317).
Beyond fines: states can issue injunctions that prevent you from selling products, and non-filers are more likely to be selected for audits. Full penalty breakdown by state.
Multi-state compliance is not “more of the same”
Managing one EPR state is a project. Managing seven is a program. Every state has different exemption thresholds, material categories, reporting requirements, and deadlines.
The May 31, 2026 deadline applies to three states simultaneously — California, Oregon, and Colorado all require annual supply reports on the same date. But “annual supply report” means something different in each state. California wants component-level data. Oregon wants aggregate tonnage. Colorado wants both plus mandatory PCR reporting.
If you're already compliant in one state, don't assume you can replicate it for the others. The administrative burden scales faster than the fees. See the 7-step compliance checklist.
Which states are next?
Three states have EPR packaging bills in progress but not yet law:
- Illinois — HB 3386 introduced, in legislative session
- New Jersey — S3398 introduced, in committee
- New York — S/A 2026 in committee, not yet law
If you sell into these states, start tracking now. Bills move slowly until they move fast. The brands that scramble are the ones that pay the most — in consultant fees, penalties, and stress.
What to do right now
(Still with us? Good. The action steps are shorter than the explanation.)
- Check your obligations — Use the free Am I Covered? tool. 60 seconds. No login.
- Check your exemption— If your revenue is under the threshold for every state where you sell, you're exempt. No fees. No reporting. Check the thresholds above.
- Estimate your fees — Use the EPR fee calculator to model your costs by material and state.
- Register with CAA — If you're covered in a CAA state, register with the PRO. Don't wait for the deadline.
- Collect your packaging data— You need weight by material category by state. Start gathering this now. Most brands don't track packaging weight this way, and it takes weeks to assemble.
- See if eco-modulation can cut your fees — 7 strategies that reduce EPR fees 15-30%.
- Watch the deadlines — Deadline calendar for all 7 states.
Still have questions? Is EPR a tax? Do online sales count? See all 16 FAQ answers — penalties, exemptions, deadlines, eco-modulation, PRO registration, and more.
Not sure where to start?
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