Navigating Extended Producer Responsibility (EPR) Legislation – What You Need to Know

Learn the core fundamentals of Extended Producer Responsibility (EPR) legislation. Understand EPR impact, objectives, legislative requirements, and upcoming developments.

July 8th, 2024 Sustainability Blog Market Trends

What is Extended Producer Responsibility (EPR)?

Extended Producer Responsibility (EPR) is a policy approach designed to boost the recycling rate of packaging materials, thereby supporting a circular economy. The approach shifts the responsibility for the collection, sortation, and processing of products and packaging from municipalities to the producers of those products. The legislative requirements of EPR include increased recycling rates, increased incorporation of recycled content, and the reduction of unnecessary material usage. Most EPR programs require packaging producers to join producer responsibility organizations, commonly referred to as PRO’s. The producers pay fees to the PROs, who then distribute the funds to cover the cost of legislative requirements , for example, the infrastructure needed to support increased recycling rates or consumer education.

Objectives of EPR

The primary intent of EPR programs is to shift the operational and financial responsibility for the collection, sortation, and processing of packaging from municipalities to producers. Producers are defined as the parties introducing packaging into the state by purchasing it, and this includes brands, (registered trademarks), and importers or distributors. Material manufacturers, like Pregis, are typically not defined as producers under EPR programs.The objectives of EPR programs includes regulation surrounding source reduction, inclusion of recycled content, and recyclability of materials. Currently, the most influential EPR program is California SB 54: Plastic Pollution and Prevention and Packaging Producer Responsibility Act. The act’s requirements include three objectives for single-use packaging and plastic food service ware that must be achieved by a phased approach by 2032:

100% must be recyclable or compostable
65% is recycled
Must use 25% less plastic packaging material compared to the baseline year of 2023 (this includes lightweighting plastic materials, incorporating recycled content, and transitioning from rigid to flexible packaging)

The timeline for California SB 54 starts the program on January 1, 2027, and producers shall join a PRO by January 1, 2024. A producer may not sell, offer for sale, or distribute for sale in or into the state the specified materials unless the producer is approved to participate in the PRO’s plan. Failure to comply with the bill may result in a notice of violation and an administrative civil penalty not to exceed fifty thousand dollars per day of violation.

How EPR Works

The companies introducing the packaging into the state by purchasing it must join and pay a fee to the PRO. The fees vary according to the quantity of material and how sustainable that material is. The PRO then manages waste activities including collection, sortation, and processing. Current states with EPR programs include Maine, Oregon, California and Colorado with the most recent state being Minnesota, signed into law on May 21, 2024.

EPR and Packaging

All members of the packaging supply chain should advocate for well-constructed EPR programs that ensure proper enforcement, have simple compliance requirements, and use fees for effective recycling projects. Pregis will continue to offer sustainable solutions that align with the three pillars of EPR programs including recycled content, recyclability, and source reduction.

The Future of EPR

EPR is expanding as it is under review in states such as Hawaii, Illinois, Massachusetts, New Jersey, New York, North Carolina, Tennessee, and Washington. However, there are concerns about conflicting objectives among state-level EPR programs. While a federal EPR framework is not currently gaining traction, the introduction of more state-level EPR programs may create a need for a unified national approach.

The Benefits and Challenges of EPR

Some of the primary benefits of EPR include:
- Promotes Circular Economy: EPR bridges the gap between the collection of recyclable materials and their reintroduction into the production cycle, thereby supporting a circular economy.
- Funding for Infrastructure: EPR ensures that funding is properly allocated to develop and maintain effective collection infrastructure.
Some of the challenges of EPR include:
- Regulatory Confusion: There may be confusion due to conflicting objectives and regulations between different states.
- Increased Burden on Companies: Companies may face additional responsibilities related to accurate data collection and managing associated risks.

Conclusion

EPR represents a crucial step forward in developing an effective end-of-life strategy for packaging that supports the circular economy. By shifting the responsibility of waste management from municipalities to producers, EPR facilitates that packaging materials are recycled and reused efficiently, reducing environmental impact. While EPR presents significant benefits, such as enhanced recycling infrastructure and funding, it also comes with challenges, including navigating varying state regulations and managing increased data collection requirements.

As EPR programs continue to evolve and expand across different states, staying informed and compliant is essential for producers. Pregis remains committed to providing sustainable packaging solutions that align with EPR principles, including recycled content, recyclability, and source reduction. Trust Pregis to keep you updated on the latest legislative developments and to support your efforts in meeting EPR requirements. Together, we can work towards a more sustainable future for packaging and the environment. Contact us today.

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