What Is EPR Packaging?

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.

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?

A “producer” is the entity responsible for packaging in an EPR state — typically the brand owner, but the exact definition follows a hierarchy (brand owner → licensee → importer → first distributor) and every state defines it differently. See the full producer definition and hierarchy.

Small business exemptions

Good news for smaller brands: every EPR state has a de minimis exemption. But the thresholds and logic differ — California uses in-state revenue only ($1M), Oregon uses global revenue ($5M), and most others use global revenue OR volume. Minnesota requires both thresholds met.

For the full exemption breakdown (AND vs OR logic, B2B exemptions, volume tests), see EPR fee rates by state — or check if you qualify.

What does EPR cost?

EPR fees are not taxes. They're industry-funded fees that go toward recycling infrastructure. The amount depends on which state, which material category, and how much packaging you sell by weight. Across the three states with published rates, fees range from $0.01/lb for corrugated cardboard to $0.45/lb for non-recyclable plastic.

For per-pound rates by material and state, see our EPR fee rates comparison. To estimate what you'll owe, use the fee calculator.

What is eco-modulation?

Eco-modulation means fee rates vary by material recyclability — non-recyclable materials cost 2–5× more per pound than recyclable ones. Two brands with identical tonnage can pay very different fees depending on material choices. 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 steep — up to $100,000/day in Minnesota, $50,000/day in California, and $25,000/day in Oregon and Colorado. States can also issue injunctions that prevent you from selling products. 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 — Illinois, New Jersey, and New York. None are law yet, but all have legislative momentum. See the full state-by-state breakdown.

What to do right now

(Still with us? Good. The action steps are shorter than the explanation.)

1. Check your obligations — Use the free Am I Covered? tool. 60 seconds. No login.
2. 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.
3. Estimate your fees — Use the EPR fee calculator to model your costs by material and state.
4. Register with CAA — If you're covered in a CAA state, register with the PRO. Don't wait for the deadline.
5. 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.
6. See if eco-modulation can cut your fees — 7 strategies to reduce EPR fees.
7. 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.