Extended Producer Responsibility: The New Economics of Packaging

The challenge is that pet food bags, and many other types of flexible plastic packaging, are not accepted in most curbside recycling systems. This conundrum is at the heart of one of the biggest shifts in packaging policy today: Extended Producer Responsibility (EPR).

What is EPR?

EPR laws are designed to shift some of the financial and logistical burden of recycling away from consumers and taxpayers and place it back on the producers (the brands) who sell the products. In essence, if your company sells a packaged product, you should also be responsible for what happens to that packaging after it's used.
 

This system has two key goals:
 

1. Fund critical infrastructure: Fees collected through EPR programs are used to fund upgrades to local recycling systems, including the development of new infrastructure for hard-to-recycle materials like plastic films.
    
   
   

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2. Incentivize sustainable design: The fee structure, known as eco-modulation, is designed to reward brands for using more environmentally-friendly packaging. Packaging that is easier to recycle, contains recycled content, or uses less material will result in a lower EPR fee, shifting the economics to drive positive change.
    

   

While this concept has been standard practice across the European Union for years, it's now gaining significant traction in the U.S. As of August 2025, seven states have enacted packaging EPR laws (California, Colorado, Maine, Maryland, Minnesota, Oregon, and Washington) and more than a dozen states have introduced or are considering similar legislation. For the latest updates, you can refer to resources from the Circular Action Alliance (CAA) or the Sustainable Packaging Coalition (SPC). 
 

A Producer Responsibility Organization (PRO) is a third-party entity that serves as a bridge between the states and the brands for EPR, managing compliance, fee collection, reporting, and logistics. Each state can select and appoint their PRO, and to date most states have chosen CAA. 

What Should Companies Do Now?
Prioritize First-Year Reporting 

There are significant penalties for non-compliance, as you can be charged back-dated fees with interest. Don't wait to report!
 

• Determine if you are a 'producer': Most EPR laws offer exemptions for small businesses, typically based on either a revenue threshold or the total weight of packaging put on the market annually. Additionally, a low-volume option may be available for businesses that fall just above the exemption threshold, providing a simpler reporting process. You must confirm your status to know whether you are obligated. If you are a producer, you must register with the relevant PRO.
   
  
• Compile your Packaging Data: Once you confirm you are a producer and want to do the full report, you need to collect and report your data. This process typically involves three key steps: Determine supply volumes per state, calculate packaging weights using accepted methodologies, and finalize your report to submit to the PRO.
   

Prepare for Eco-Modulation Benefits
The specific eco-modulation structures are still being finalized state-by-state, so it's difficult to definitively know exactly what packaging improvements will lead to minimized fees. However, as the fee structures are finalized and publicly-available, the focus will shift to how to take advantage of them. You should be prepared to consider:
 

• Using more recycled content.
• 'Right-sizing' your packaging to use less material.
• Switching to materials that have better end-of-life outcomes, such as higher recyclability or compostability.

Collaborate With Your Supply Chain

EPR success hinges on collaboration. With fees and eco-modulation data becoming publicly available, it's essential for all players across the supply chain to work together to optimize packaging decisions and drive down costs.
 

• Brands and Retailers with Private-Label: Prioritize compliance and data reporting. You are ultimately responsible for the packaging you put on the market, and proactive compliance protects you from significant financial and legal risk.
   
• Packaging Suppliers: Become a strategic partner by educating yourselves and your brand clients on EPR. By proactively offering packaging solutions that reduce EPR fees, you can help your clients minimize their costs and strengthen your business relationship.

Conclusion

The message is clear: packaging responsibility is shifting upstream.

The rollout of EPR in the U.S. marks a fundamental change in how we think about packaging. It's a collective effort, and the success of these programs, from funding better infrastructure to driving packaging innovation, depends on the full participation of all stakeholders. By taking a proactive approach, brands can not only ensure compliance and avoid penalties but also position themselves as leaders in a new, more sustainable economy.
 

Navigating EPR can be a complex challenge, but you're not alone. As the primary PRO in the US, CAA regularly publishes helpful guidance. The Pet Sustainability Coalition (PSC) also offers direct support, and members receive a discount to rePurpose Global's EPR Compliance platform. Contact PSC to learn more.


Source: Pet Sustainability Coalition