Extended Producer Responsibility (EPR) laws require businesses that sell packaged products to fund recycling systems for their packaging materials. Seven U.S. states have enacted EPR packaging laws: California, Colorado, Maine, Minnesota, Oregon, Maryland, and Washington. Programs are phasing in over several years. Because regulations are still being written, producers should engage with legislators and regulatory bodies now to influence how these programs work. Businesses producing packaging should evaluate their recycling partnerships to ensure compliance and minimize fees.
Key Takeaways
- Seven states have EPR packaging laws; regulations are still being written, creating opportunities to influence the rules
- Fiber recycling rates remain high: 70-75% for old corrugated containers (OCC), 61-65% for paper3 vs. 13.6% for plastic packaging4
- California offers a 65% recycling rate exemption that could spare fiber-based packaging from fees
- EPR fees will be passed to consumers as a packaging cost increase
- Closed-loop recycling partners provide the verifiable data needed for ESG reporting and EPR compliance
Who qualifies as a ‘producer’? Under state EPR packaging laws, ‘producers’ typically include manufacturers, brand owners, licensees, importers, and distributors of packaged products. Retailers selling private-label products are generally classified as producers for those items. The first entity to introduce packaged goods into a state with EPR laws typically bears compliance responsibility. While definitions vary by state, most laws establish a hierarchy so that only one entity in a product’s supply chain is the ‘obligated producer.’7
Before the policy language hits, most companies encounter EPR as a practical disruption: a new data request from procurement, a fee notice that wasn’t in last year’s budget, or a compliance questionnaire from a customer that nobody internally knows how to answer. The dock manager asks why the hauler is requesting weight data by material grade. Finance wants to know who owns this cost center. These operational realities are where EPR lives for most businesses.
What Is EPR for Packaging and Why Does It Matter?
EPR (Extended Producer Responsibility) is a regulatory framework that shifts the cost of recycling and disposing of packaging from municipalities to the businesses that create or sell packaged products. Under EPR laws, companies classified as “producers” must join a Producer Responsibility Organization (PRO), report their packaging volumes, and pay fees based on the materials they use.
For retailers, CPG companies, grocers, ecommerce operations, and distribution centers, EPR compliance adds a new layer of operational complexity. Your cardboard boxes, paper packaging, and fiber materials now carry regulatory obligations that affect your bottom line.
“Besides Oregon and Colorado going into effect, none of the programs are in full effect, which means that the guidance is unclear, which means the rules are not clear, which means we still have an opportunity to change the rules,” says Cynthia Leon, Senior Government Relations Western Regional Manager at International Paper. “That’s the biggest piece of advice that we have right now.”
Where EPR has worked. EPR for packaging is not new. Germany pioneered the approach in 1991 with its Green Dot system, achieving a 90.3% recycling rate for packaging waste by 2022 and reducing per-capita packaging consumption by 13% in its first seven years.8 In South Korea, packaging EPR contributed to a 70% increase in recycling rates between 2003 and 2017.9 British Columbia’s program, launched in 2014, increased packaging recovery from roughly 50% to over 80% while saving municipalities more than $400 million in waste management costs.8 These programs succeeded by establishing clear producer obligations, investing in collection infrastructure, and using eco-modulated fees to reward recyclable materials. The lesson for U.S. producers: EPR can deliver results when properly designed and when industry participates actively in shaping the rules.
Which States Have EPR Packaging Laws?
Seven U.S. states have enacted EPR packaging laws:
California (SB 54, includes 65% recycling rate exemption for fiber)
Colorado (HB 22-1355, program active)
Oregon (SB 582, program active)
Maine (LD 1541, first U.S. state to pass packaging EPR)
Minnesota (HF 3911, phased implementation)
Maryland (SB 901, phased implementation)
Washington (SB 5284, phased implementation)
At least eight additional states have introduced comprehensive EPR packaging bills, including New York, Massachusetts, Rhode Island, New Jersey, Illinois, Tennessee, North Carolina, and Hawaii.1 With no federal EPR packaging law in sight, states are taking matters into their own hands. Industry observers note that federal EPR legislation is unlikely to gain traction given shifts in congressional priorities and committee leadership changes.6
Programs are phasing in over several years. Circular Action Alliance (CAA) has been designated as the PRO in California, Colorado, and Oregon, and is applying in other states.1
How Do EPR Fees Work for Cardboard and Paper Packaging?
EPR fees are calculated based on the weight and type of packaging materials a business generates. Most EPR laws use “eco-modulation” to adjust fees based on environmental impact. Materials that are easier to recycle and have established recycling infrastructure typically pay lower fees than materials that are difficult or costly to process.
Factors that affect your EPR fees include: post-consumer recycled content in your packaging, product-to-package ratio, material choice (fiber vs. plastic vs. glass), life cycle environmental impacts, and your material’s recycling rate compared to other materials.2
“EPR fees are in-effect a packaging tax,” Leon notes. “There is no question that the fee on this packaging is going to be passed on to the consumer. We have an opportunity here to educate people and push back. We can find ways to focus on the most egregious items that need money for infrastructure. Let’s call it what it is: it’s plastic.”
Why Does Fiber-Based Packaging Get Different Treatment Under EPR?
Cardboard and paper packaging already recycle at significantly higher rates than other materials, which is why some EPR programs offer exemptions or reduced fees for fiber. The American Forest & Paper Association’s data shows 70-75% of used cardboard and 61- 65% of paper available for recovery were recycled.3
Compare this to plastic: According to the U.S. EPA, plastic containers and packaging had a 13.6% recycling rate in 2018, while paper and paperboard containers reached 80.9%.4 This difference explains why EPR programs originally targeted plastic waste.
Recycled fiber makes up more than 44% of all fiber consumed at domestic paper mills.3 A robust market-driven recycling infrastructure already exists for fiber-based packaging.
What Is California’s 65% Recycling Rate Exemption?
California’s SB 54 includes a provision that exempts materials with a recycling rate of 65% or higher from EPR fees. This “off-ramp” could spare most fiber-based packaging from program costs if the industry demonstrates it meets this threshold.
“That off-ramp basically says that anything that is recycled at 65% or higher will not have a fee placed on it,” Leon explains. “That is a huge victory for our industry. It was led by International Paper. Thirteen legislators stood up and said they would not sign the bill unless paper was excluded. Twelve out of the thirteen members that signed that letter were IP champions.”
Current OCC recycling rates (70-75%) exceed this threshold, making cardboard packaging a strong candidate for exemption under properly implemented EPR rules.
How Can I Prove My Recycling Efforts for ESG Reporting?
EPR compliance and ESG reporting both require documented, verifiable proof that your packaging materials reach legitimate recycling facilities. A closed-loop recycling partner provides this verification by tracking materials from your loading dock through processing and into new products.
International Paper’s integrated model offers this traceability. International Paper Recycling does not simply collect and sell fiber to the highest bidder. The company places recovered OCC, double lined kraft (DLK), and mixed paper into its own mill system to manufacture new packaging products. This creates a documented chain of custody that sustainability and compliance managers need for auditable reporting.
IP’s technology platforms support this documentation, such as the Supplier Portal which provides volume summaries, grade breakdowns, and shipment history.5
What Should Businesses Do Now to Prepare for EPR?
The regulations implementing EPR laws are still being written. This creates a window for businesses to influence how programs work and prepare their operations for compliance.
Leon emphasizes, “This is a producer program. Producers need to speak up.”
Steps to take now:
- Audit your packaging materials. Understand the volume and types of OCC, paper, and fiber packaging your operations generate. In practice, this often means coordinating across procurement, operations, and sustainability teams who may not have shared data before.
- Evaluate your recycling partner. Can they document chain of custody? Do they process domestically? Are they engaged in EPR policy?
- Register with your state’s PRO. Deadlines vary by state. Missing registration can result in penalties when enforcement begins, though in most cases enforcement mechanisms are still being established.
- Engage in rulemaking. Comment periods for proposed regulations offer opportunities to advocate for fair treatment of fiber materials. For many companies, this means working through trade associations or relying on partners like International Paper who are already at the table.
- Build reporting infrastructure. EPR compliance requires ongoing data on packaging volumes, recycling rates, and material destinations.
Frequently Asked Questions
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Who qualifies as a “producer” under EPR laws?
Generally, the brand owner, manufacturer, or first importer of packaged products sold in a state with EPR laws. Retailers selling private-label products are typically classified as producers for those items.
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Does EPR apply to B2B packaging or only consumer packaging?
Most state EPR laws focus on consumer packaging, but definitions vary. Commercial and industrial packaging handled through private recycling contracts may be treated differently than residential recycling streams.
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How much will EPR fees cost my business?
Fee structures are still being finalized in most states. Costs depend on packaging volume, material types, and eco-modulation factors. Fiber-based materials with high recycling rates should qualify for lower fees than plastic.
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What happens if I don’t comply with EPR requirements?
Penalties vary by state. Oregon’s law includes potential fines up to $25,000 per day for non-compliance. However, enforcement mechanisms are still being established in most states.
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Can my recycling partner help with EPR compliance?
Yes. A recycling partner with domestic processing, documented chain of custody, and EPR policy expertise can provide the data you need for registration, reporting, and ESG disclosure while advocating for fair treatment of fiber materials.
Schedule Your Free Recycling Assessment
International Paper Recycling works with retailers, CPG companies, grocers, ecommerce operations, printers, packaging converters, and distribution facilities across the country. Our integrated recycling model provides the closed-loop visibility and documented chain of custody that EPR compliance and ESG reporting require.
International Paper maintains teams actively engaging with PROs, regulatory bodies, and legislators in every state implementing EPR programs. We understand the complexities because we are at the table shaping how these programs work.
We won’t pretend the path is clear. Regulations are changing, fee structures remain incomplete in several states, and many companies are still working through internal questions about who owns EPR compliance. What we can offer is a starting point: verified data, policy context, and a recycling infrastructure that’s built for documentation.
Ready to evaluate your recycling program? Schedule a free recycling assessment with International Paper Recycling. We'll analyze your used cardboard, box clippings, office and printing papers, and other waste streams, review current arrangements, identify where business model risk exists, and show you how mill-backed domestic processing keeps your operations running smoothly.
Contact your International Paper Recycling representative or schedule your assessment.
References
Proskauer Rose LLP, “Seven States and Counting: Guide to EPR Packaging Compliance.”
International Paper, “The Landscape of U.S. State EPR Packaging Laws.”
American Forest & Paper Association, “How Much Paper Was Recycled.”
U.S. Environmental Protection Agency, “Facts and Figures about Materials, Waste and Recycling.”
AMERIPEN policy outlook cited in Packaging World, “AMERIPEN: Packaging Policy Update & Outlook.”
Proskauer Rose LLP, "Extended Producer Responsibility (EPR) Packaging Law Update." July 1, 2026
OECD, “New Aspects of EPR: Extending Producer Responsibility.”
About International Paper
International Paper (NYSE: IP) is dedicated to empowering customers, teammates, and shareowners to thrive by delivering innovative, sustainable packaging solutions for a changing world. As a trusted leader in corrugated packaging and one of North America's largest recyclers, we collaborate with partners across industries to protect what matters most—strengthening supply chains, advancing sustainability, and creating lasting value for our stakeholders. IP recovers, processes, and manages nearly 7 million tons of used cardboard, box clippings, office and printing papers, and other waste streams annually, representing approximately 12% of the U.S. market for recycled cardboard.5 This mill-backed model means IP buys fiber because its mills need it: consistent demand through market cycles, flexible pickup that keeps your docks clear, and payments on time, every time.
