Extended Producer Responsibility (EPR) for Packaging: A State-by-State Guide

Extended Producer Responsibility (EPR) for packaging is transforming the way U.S. companies think about the corrugated boxes, paper wraps, and other packaging materials they put into the market. Under EPR laws, the financial and operational responsibility for collecting, sorting, and recycling packaging shifts from municipalities and taxpayers to the companies that produce, fill, or import that packaging.

As of early 2026, four U.S. states have enacted comprehensive EPR laws for packaging, with several more actively considering legislation. For companies that manufacture, purchase, or sell corrugated packaging, understanding these laws — and the ones coming next — is essential.

What Is EPR for Packaging?

At its core, EPR for packaging requires "producers" — typically defined as brand owners, first importers, or companies that introduce packaged products into a state's market — to fund the end-of-life management of their packaging. This is accomplished through fees paid into a Producer Responsibility Organization (PRO), which uses those funds to support collection, sorting, and recycling infrastructure.

The principle is straightforward: if you put packaging into the market, you pay for its responsible disposal and recycling. The specific implementation, however, varies significantly by state.

How EPR Fees Are Typically Structured

EPR fee structures generally follow one of two models:

1. Flat fee per ton of material — Producers pay a set rate per ton of packaging material they introduce into the market, differentiated by material type.
2. Eco-modulated fees — Base fees are adjusted up or down based on packaging attributes like recyclability, recycled content, toxicity, and whether the packaging is compostable or reusable.

Every U.S. EPR law enacted so far includes eco-modulation provisions, meaning corrugated packaging — with its high recycling rates and established infrastructure — generally benefits from lower per-ton fees compared to harder-to-recycle materials.

State-by-State Breakdown

Maine — The First Mover

Law: LD 1541 (An Act To Support and Improve Municipal Recycling Programs and Save Taxpayer Money) Enacted: July 2021 Program Launch: Phased implementation, with producer registration and fee assessments beginning in 2026

Maine was the first U.S. state to enact comprehensive packaging EPR legislation. The law's key features include:

Who is covered? Producers that sell or distribute products in packaging in Maine, above a de minimis threshold. Small producers with less than $2 million in annual gross revenue in Maine are exempt.

Fee structure: Fees are based on the tons of packaging material sold into the state, with significant eco-modulation. Key modulation factors include:

• Material recyclability in Maine's actual recycling infrastructure
• Post-consumer recycled content
• Whether the packaging uses toxic substances (e.g., PFAS)
• Source reduction efforts

PRO structure: Maine's Department of Environmental Protection oversees the program. A stewardship organization (PRO) manages day-to-day operations and fee collection.

Corrugated-specific considerations: Corrugated packaging is expected to receive favorable fee modulation given its established recycling infrastructure and high recovery rates in Maine. However, wax-coated or heavily contaminated corrugated may face higher fees.

Oregon — Shared Responsibility Model

Law: SB 582 (Plastic Pollution and Recycling Modernization Act) Enacted: August 2021 Program Launch: Fee assessments beginning in 2025-2026

Oregon took a different approach by creating a "shared responsibility" model that allocates costs between producers and local governments.

Who is covered? Brand owners, licensees, and first importers who sell products in packaging in Oregon. The de minimis exemption applies to producers with less than $5 million in annual national gross revenue.

Fee structure: Oregon's fee model is based on a "needs assessment" that determines the total cost of collecting, sorting, and recycling packaging in the state. Fees are allocated across material types based on:

• The cost of managing each material in the recycling system
• Material recyclability
• Recycled content
• The presence of problematic additives

PRO structure: Producers must join a PRO approved by the Oregon Department of Environmental Quality. The PRO collects fees, manages funds, and supports infrastructure investments.

Unique features: Oregon's law includes specific provisions for "responsible end markets" — requiring that collected packaging be sent to recycling facilities that meet environmental and labor standards, not exported to countries with inadequate processing infrastructure.

Corrugated-specific considerations: Oregon has strong OCC recycling infrastructure. Corrugated is expected to be categorized as "readily recyclable," which should result in lower fee rates. The responsible end markets provision benefits corrugated since domestic recycled containerboard mills provide verified end markets.

Colorado — The Needs Assessment Approach

Law: HB 22-1355 (Producer Responsibility Program for Statewide Recycling) Enacted: June 2022 Program Launch: Producer registration in 2025, fees beginning in 2026

Colorado's law is built around a comprehensive needs assessment that evaluates the state's recycling infrastructure before setting fee levels.

Who is covered? Producers with more than $5 million in national gross revenue who sell or distribute products in packaging in Colorado.

Fee structure: Fees are determined after the needs assessment identifies gaps in Colorado's recycling infrastructure. The total funding requirement is then allocated across producers based on:

• Tons of packaging material placed on the market
• Material type and recyclability
• Post-consumer recycled content (fee reductions for higher content)
• Packaging that is certified compostable or designed for reuse

PRO structure: A single, nonprofit PRO manages the program under oversight of the Colorado Department of Public Health and Environment.

Unique features: Colorado's law includes specific recycling access targets — requiring that recycling services be available to a specified percentage of the population by certain dates, with particular attention to rural communities.

Corrugated-specific considerations: Colorado's recycling infrastructure for corrugated is well-developed in the Front Range but less so in rural mountain communities. The needs assessment may identify OCC collection in rural areas as a funding priority, which could influence fee allocations.

California — The Largest Market

Law: SB 54 (Plastic Pollution Prevention and Packaging Producer Responsibility Act) Enacted: June 2022 Program Launch: PRO plan submission in 2025, phased fee implementation starting 2026-2027

California's EPR law is the most consequential by market size and is the most focused on source reduction and recycling rate targets.

Who is covered? All producers who sell, offer for sale, or distribute products in covered packaging in California, above a de minimis threshold. The threshold is $1 million in annual gross revenue from products sold in California.

Fee structure: California's approach emphasizes outcome-based targets rather than pure cost allocation:

• Achieve a 65% recycling rate for all packaging by 2032
• Reduce plastic packaging by 25% by 2032
• All packaging must be recyclable or compostable by 2032

Fees are modulated based on material recyclability and environmental impact. Materials with high recycling rates (like corrugated) are expected to pay lower rates per ton.

PRO structure: CalRecycle oversees the program. A PRO develops and implements a plan to meet the law's targets, funded by producer fees.

Unique features: California's law is more aggressive than other states in requiring source reduction and placing higher obligations on plastic packaging specifically. Corrugated packaging may benefit from substitution effects as companies shift away from harder-to-recycle plastic packaging.

Corrugated-specific considerations: California is the largest U.S. market for corrugated packaging. The state already has extensive OCC recycling infrastructure, and corrugated recycling rates exceed the 65% target. This positions corrugated producers favorably for lower eco-modulated fees.

States to Watch

Several states are actively considering EPR packaging legislation:

New York

New York has introduced EPR packaging bills in multiple legislative sessions. Given the state's market size, an enacted New York EPR law would be the second most impactful after California. Key proposals include eco-modulated fees based on recyclability and a strong PRO oversight structure.

Washington

Washington has come close to passing EPR legislation multiple times. The most recent proposals align closely with Oregon's shared responsibility model, which makes sense given the two states' similar recycling infrastructure.

Illinois, Maryland, and Massachusetts

All three states have active EPR packaging bill proposals at various stages of the legislative process. Maryland's proposal is notable for its focus on environmental justice, requiring that recycling infrastructure investments prioritize underserved communities.

Minnesota and Connecticut

Both states have had EPR proposals in recent legislative sessions. Minnesota's approach has focused on a comprehensive needs assessment model similar to Colorado's.

Fee Implications for Corrugated Packaging

While exact fee rates are still being finalized in most states, we can project how corrugated packaging will be treated based on the eco-modulation criteria written into each law.

Favorable Factors for Corrugated

• High recyclability: Corrugated has the highest recycling rate of any packaging material in the U.S., exceeding 90%. This earns the maximum recyclability discount in every EPR law.
• Established infrastructure: OCC collection, sorting, and recycling infrastructure exists nationwide. There is no need for significant infrastructure investment to achieve high recovery.
• Domestic end markets: Recycled containerboard mills provide robust domestic demand for recovered OCC, meeting responsible end market requirements.
• Recycled content: With recycled containerboard representing nearly 50% of the market, corrugated packaging typically contains significant recycled content, earning further fee reductions.
• Non-toxic: Standard corrugated board does not contain PFAS or other chemicals of concern that trigger fee surcharges in most EPR laws.

Potential Fee Exposures

• Wax-coated corrugated: Petroleum wax coatings render corrugated non-recyclable in most systems, which would result in higher fees. Water-based barrier coatings solve this problem.
• Heavy contamination: Corrugated packaging heavily contaminated with food waste may face higher fees if it is frequently rejected at MRFs.
• Oversized packaging: Some EPR frameworks include source reduction incentives, potentially penalizing oversized packaging relative to product size.

Estimated Fee Ranges

Based on early program designs and comparable international EPR systems:

These ranges are estimates based on program designs and international benchmarks. Actual fees will vary by state and will be finalized through PRO rate-setting processes.

Compliance Strategies for Corrugated Users

Registration and Reporting

1. Identify your obligations — Determine whether your company meets the "producer" definition in each state with an EPR law. This typically requires analyzing whether you're the brand owner, first importer, or seller of record.
2. Register with PROs — Register with the designated PRO in each applicable state by the required deadlines. Late registration can result in penalties.
3. Track packaging volumes — Implement systems to track the tons of corrugated packaging you place on the market in each state. This requires coordinating with your box suppliers and distribution partners.
4. Document recycled content — Maintain documentation from containerboard suppliers showing recycled fiber content to support eco-modulation claims.

Design Optimization

1. Eliminate non-recyclable components — Remove wax coatings, excessive plastic tape, and non-paper attachments that could increase fee assessments.
2. Right-size packaging — Reduce void space and oversized boxes to demonstrate source reduction, which earns fee credits in most programs. Box-on-demand systems can help.
3. Increase recycled content — Specify higher recycled content containerboard where performance allows, earning additional eco-modulation benefits.
4. Monitor containerboard prices to understand the cost implications of recycled content specifications.

Multi-State Coordination

With each state operating its own EPR program, companies selling nationally face the prospect of registering with multiple PROs, tracking packaging volumes by state, and complying with differing reporting requirements. Strategies to manage this complexity include:

• Centralized compliance management — Designate a single internal team or external consultant to manage all state EPR obligations.
• Standardized data systems — Implement packaging tracking systems that can allocate volumes by state of sale.
• Industry association engagement — Organizations like the Fibre Box Association (FBA) and American Forest & Paper Association (AF&PA) provide compliance guidance and advocate for harmonized requirements across states.

The Road Ahead

EPR for packaging is still in its early stages in the U.S., but the direction is clear: more states will enact these laws, and the financial obligations on producers will grow. For the corrugated industry, this is broadly positive — corrugated's inherent recyclability and established infrastructure mean it will consistently receive favorable treatment relative to less recyclable materials.

The challenge lies in administrative compliance: tracking volumes, registering with PROs, documenting recycled content, and managing multi-state obligations. Companies that build these systems now will be well-prepared as EPR expands to additional states over the coming years.