Selling consumer packaged goods is becoming more expensive for manufacturers that sell nationally.
Extended Producer Responsibility (“EPR”) laws will shift the cost of recycling and waste management from local governments to companies that manufacture, package, and sell goods in certain states. Under new EPR laws, many companies – deemed “Producers” – will be responsible for their product’s life cycle. Producers will bear the cost of recycling paper and packaging materials, including commonly recycled items like single-use plastic containers that package food and beverages.
To date, EPR laws relating to packaging have been enacted in Colorado (HB 22-1355), California (SB 54), Minnesota (HF 3577), Maine (LD 1541), Oregon (SB 582), and Maryland (SB 901). Legislation is pending in many other states. As of the date of this alert, there is currently no pending legislation in Pennsylvania. The differences in each law will likely create a variety of obligations for Producers that sell consumer packaged goods nationally.
Each law requires Producers to form or join a state-selected Producer Responsibility Organization (“PRO”). The PRO is authorized to implement the statutes by allocating various responsibilities to Producers. If Producers do not join a PRO, they must demonstrate compliance with EPR laws.
Each EPR state’s law has its own set of reporting and compliance guidelines, which are managed by the PRO. Primary obligations focus on reporting the tonnage of single-use packaging sold into a state. The EPR laws also set forth timelines aimed to increase recycling rates and update packaging materials in the coming years. There are some exceptions to EPR requirements, including for Producers who do limited business in the state and for certain kinds of packaging.
There are many deadlines in 2025 and 2026 for compliance, reporting, and payment. Producers who fail to comply will be subject to fines and eventually can be barred from doing business in the state. Therefore, it is imperative that Producers are aware of EPR laws, and how they affect them.
Barley Snyder is actively monitoring the development of EPR laws across the nation. If you need assistance with the requirements under the new laws, please reach out to attorneys Catherine Begley, EmmaRose Strohl, Tim Dietrich, or any member in Barley Snyder’s Food & Agribusiness Industry Group.
