How to Reduce EPR Fees — 7 Strategies

EPR fees are eco-modulated — non-recyclable materials cost 2–5× more per pound than recyclable ones. Material selection has the biggest financial impact, more than any credit or bonus. Here are 7 strategies ranked by savings.

These strategies are ranked by estimated impact, starting with the biggest savings.

01

Material selection — pick a lower-fee category

55–81%

Switching from a high-fee material category to a lower-fee category saves more than any eco-modulation bonus. Non-recyclable materials cost 2–5× more per pound than recyclable ones. Switching to recyclable rigid plastic saves 55–81% (CO: 67–81%, OR: 64–84%, CA: 35–73%).

How to implement

  • Audit your packaging portfolio — identify every SKU in a high-fee category
  • Prioritize high-volume products first — small changes at scale have the biggest impact
  • Work with your supplier on mono-material alternatives for multi-material SKUs
  • Test for product compatibility before switching
Applies to: All states with active fees (CA, OR, CO) — rate structure rewards recyclability
02

Design for recyclability

Category shift

Remove problematic laminations, foils, adhesives, and coatings that push packaging into non-recyclable categories. Multi-material composites (plastic + foil + paper) are classified as non-recyclable and pay the highest rates. Even small design changes can shift a package from non-recyclable to recyclable — dropping the per-pound rate dramatically.

How to implement

  • Identify laminated, coated, or multi-layer SKUs in your portfolio
  • Replace foil lamination with mono-material alternatives where possible
  • Switch to water-based adhesives and coatings that don't contaminate recycling streams
  • Standardize to industry-standard formats that stay on the MRL (Minimum Recyclable List)
  • Validate with your recycler that the redesigned format is actually recyclable
Applies to: All states with active fees — especially CO (MRL pricing tiers apply)
03

Lightweight your packaging

1:1 direct

EPR fees are calculated per pound of packaging material. Less weight = fewer pounds reported = lower fees. A 10% weight reduction = 10% fee reduction. No eco-modulation needed — it's a direct 1:1 savings that applies in every state.

How to implement

  • Identify over-packaged SKUs (excess void fill, oversized boxes, heavy closures)
  • Test lighter-weight alternatives without sacrificing product protection
  • Focus on heaviest materials first (glass, steel, corrugated)
  • Even small per-unit reductions compound across thousands of SKUs
Applies to: All states
04

Increase PCR content

Future-proofs + CO: −5%

Higher post-consumer recycled (PCR) content shifts packaging into lower-rate recyclable categories and supports impact-reduction claims. In Colorado, materials with proven high recycling rates qualify for a −5% High Recycling Rate Bonus. In Oregon, PCR increases are a qualifying activity under environmental performance incentives. Increasing PCR now future-proofs your packaging for upcoming state programs.

How to implement

  • Check if your packaging materials are on the CAA Minimum Recyclable List
  • Use materials with documented high recycling rates (PET, HDPE, corrugated)
  • Set PCR targets — even 10% PCR content can improve category classification
  • Document recycling rates and PCR percentages for CAA reporting
Applies to: CO: −5% High Recycling Rate Bonus published | OR: qualifying activity under environmental performance | CA: anticipated with program plan Oct 2026
05

Reuse & refill systems

Potentially largest incentive

Potentially the largest eco-modulation incentive, but also the most difficult to implement. Oregon's approved program rewards transitions from single-use packaging to reusable/refillable systems. California requires at least 10% of source reduction from reuse/refill or elimination. Best suited for high-volume SKUs where infrastructure investment pays off.

How to implement

  • Identify high-volume SKUs where reuse/refill is feasible (household products, beverages, CPG)
  • Start with pilot programs at key retailers rather than full rollout
  • Design for durability — reusable packaging must survive multiple trips
  • Track return/refill rates for CAA reporting and eco-modulation qualification
  • California requires a written Source Reduction Plan — reuse/refill counts toward the 10% minimum
Applies to: OR: qualifying activity for environmental performance incentives | CA: counts toward source reduction mandate | CO: active incentives still TBD
06

Avoid Detriments malus (Colorado)

+5% avoided

Colorado's published dues schedule includes a Detriments malus of +5% — an automatic surcharge on materials that disrupt recycling processes (like PVC, certain additives). Avoiding these materials dodges the surcharge on top of the already-higher non-recyclable base rate.

How to implement

  • Check the CAA Detriments list for materials you use
  • Audit packaging for PVC, contaminating additives, and flagged materials
  • Work with suppliers to replace detriment materials
  • Document material changes for CAA reporting
Applies to: Colorado (published) | CA & OR: not yet published
07

Avoid Prop 65 chemicals (California)

TBD

California's SB 54 is expected to include a malus for packaging containing Proposition 65 chemicals (PFAS, vinyl, etc.). The specific surcharge has not yet been published by CAA — expected with the program plan in Oct 2026. Removing these chemicals now prepares you for when it takes effect.

How to implement

  • Audit all packaging materials for Prop 65 listed chemicals
  • Focus on inks, adhesives, and plasticizers first — these are the most common sources
  • Work with suppliers to find alternative formulations
  • Document all changes for CAA reporting
Applies to: California only (specific malus TBD)

See your potential savings

Use the fee calculator to see exactly how much recyclable vs. non-recyclable materials cost in each state.

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