EPR in the USA – A Major Challenge
In the United States, there is no centralized Extended Producer Responsibility (EPR) framework at the national level. Instead, EPR programs are organized at the state level, leading to significant variations in scope and requirements. Despite advancements in some states, EPR implementation in the U.S. is characterized by a “patchwork legislation.” States like California, Maine, and Vermont have already established comprehensive EPR programs, while others are still discussing or have yet to implement any EPR regulations. This inconsistency complicates it for companies to navigate and comply with the varying requirements across the country.
Businesses selling products in the U.S. must increasingly adapt to the requirements of Extended Producer Responsibility (EPR). What makes EPR unique in the U.S. is that it is regulated at the state level, resulting in a multitude of different regulations. States like Maine, Oregon, California, Colorado, and Minnesota already have EPR laws in place or in development, and experts anticipate that more states will follow. Companies from third countries, such as Germany, must pay special attention to state regulations to avoid legal risks and penalties.
EPR Adoption Across the USA
According to the Product Stewardship Institute (PSI), around 33 U.S. states have implemented EPR programs, and this number is steadily increasing. Leaders like California and Maine have comprehensive EPR regulations covering various product categories, while other states have limited programs or none at all.
Establishing a uniform system presents a unique challenge in the U.S., where waste management is traditionally governed at the state level. Each EPR program applies only within its respective state, adhering to its own requirements, leading to a multitude of regulations. This particularly burdens companies operating nationwide with significant compliance efforts and costs. However, the trend toward new EPR legislation continues, with states like Maryland, Illinois, New York, and Washington currently drafting bills or conducting evaluations.
State-Specific EPR Insights
Maine
Maine was the first state to actively adopt EPR legislation in 2021. The law is set for approval in 2025 and will take effect in 2026. Businesses, manufacturers, and retailers must join a Producer Responsibility Organization (PRO) and pay fees for packaging waste disposal.
Oregon
Following suit in 2021, Oregon enacted its EPR packaging law, requiring producers to join a PRO and pay relevant fees by July 1, 2025. Oregon has established a list of recyclable packaging that municipalities must accept, which includes standard recyclables and specific plastic items.
California
EPR laws in California are set to take effect in 2032, with a defined list of materials falling under the recycling law. Producers of single-use packaging must join a PRO and contribute financially to waste management. By 2032, PROs must ensure that 100% of packaging is recyclable or compostable, and 65% of single-use packaging is recycled.
Colorado
Known for its low recycling rates, Colorado is initiating a “Producer Responsibility Program for Recycling.” The program, managed by the CAA, aims to kick off on July 1, 2025, requiring businesses to join a PRO and contribute to recycling costs.
Minnesota
Minnesota became the fifth state to sign EPR legislation in May 2024, mandating manufacturers to cover half of the recycling costs and ensuring that all packaging is recyclable, reusable, compostable, or collectable by 2032.
Product Categories Affected by EPR
EPR legislation in the U.S. encompasses various product categories, with each state interpreting the regulations differently. Currently, the most impacted categories include:
- Packaging: EPR is increasingly mandated, particularly in Maine and Oregon.
- Electronics: Products like TVs and computers are subject to EPR programs in several states.
- Batteries: Lithium-ion batteries are regulated in many states due to their classification as hazardous waste.
- Mercury-containing products: Items like thermostats require special disposal and are EPR-mandated in states like Maine and Vermont.
- Pharmaceuticals and Sharps: California and other states require manufacturers to provide collection and disposal programs for medical products.
EPR in Canada
Similar to the U.S., Canadian provinces have the autonomy to create their own EPR laws. Provinces like British Columbia, Saskatchewan, and Ontario have guidelines requiring companies to fund packaging recycling systems. However, Canada is ahead of the U.S. in EPR implementation, having developed a comprehensive action plan to reduce plastic waste.
Challenges of EPR in the USA
Implementing EPR in the U.S. is significantly more complex than in Europe. Each state creates its own EPR guidelines, complicating nationwide monitoring and enforcement. Additionally, companies in the plastics industry that have heavily invested in traditional production methods often resist or delay regulations, leading to years of implementation delays.
Major Challenges Include:
- Inconsistent Legislation: Companies must review and comply with each state’s regulations individually.
- Cost: Implementing EPR programs requires substantial financial resources for take-back systems and recycling initiatives.
- Compliance Complexity: Manufacturers and importers often need to register products, submit reports, and adhere to specific labeling requirements, increasing administrative burdens.
- Environmental Responsibility: Stricter requirements for eco-friendly design and product durability necessitate investment in R&D.
Who is Affected by EPR in the U.S.?
EPR generally impacts manufacturers within the supply chain of specific products. In Maine, a manufacturer is defined as the entity that holds legal ownership of the brand of the sold products or the sole company importing those products into the state. However, rules vary by state, affecting different types of companies.
Obligated Producers Typically Include:
- Manufacturers: Companies producing goods for sale.
- Brand Owners: Companies owning the brand under which products are sold, regardless of who manufactures them.
- Licensees: Companies selling products under a licensed brand.
- Importers: Businesses importing products for sale in the U.S.
- Distributors and Retailers: Companies selling products under their own brand or importing goods.
What Third-Country Retailers or Manufacturers Should Consider
Manufacturers introducing goods and their packaging into states with existing EPR laws must report their data to a PRO and pay applicable fees. In states without EPR laws, companies need only ensure compliance with safety requirements.
Given the complexity of EPR regulations in the U.S., it is advisable to collaborate with experts from Deutsche Recycling GmbH. Although the regulations are still new, violations can already lead to penalties. For instance, companies in Oregon face fines of up to $1,000 for non-compliance, while Maine imposes penalties of up to $100.
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