EPR is a policy
approach that labels certain companies as
.
What Are EPR Laws Anyway? Put simply, EPR is a policy approach that labels certain
companies, including dealers, as producers and assigns them responsibility for the end-of-life of products. This can include both financial responsibility and operational responsibility, though the amount and type may differ. Producers are required to provide funding and/or services that assist in managing covered products after they are used. EPR policies are being put in place to help promote waste reduction and incentivize product design that minimizes environmental impacts. However, they also impose burdensome regulatory requirements and new costs on businesses. Most EPR programs either encourage or require companies defined as producers to join a collective producer responsibility organization (PRO), which develops a producer responsibility plan and manages the producer responsibility program. In some states, these components are referred to as a stewardship organization and stewardship plan. PROs are typically required to be nonprofit organizations, and most state laws allow for multiple PROs to operate within a single region’s EPR programs, though in practice, states like Oregon and California have only authorized one PRO at this time. The financial structure may vary, but in most EPR
programs producers, including distributors, pay fees to the PRO. The PRO then uses those funds to cover the costs for the end-of-life management of covered products (collection, sortation, processing). Covered products are either defined in legislation or in the producer responsibility plan and are the specific items or materials that must be managed within the program.
How Will EPR Laws Affect Distributors? Over the past 20 years, lawmakers have steadily expanded
the scope of recycling laws, moving beyond hazardous items like electronics and paint to include everyday waste
producers and assigns them responsibility for the end-of-life of products.
such as plastic packaging and paper products. The goal is to shift recycling costs away from taxpayers to the companies that introduce these materials into the market. By requiring producers to fund end-of-life management, states hope to improve the recycling system and drive manufacturers to design products with less environmental impact.
For foodservice equipment dealers, that means paying closer attention to packaging, materials and supply chain partners as this regulatory shift continues. Seven states (Washington, Oregon, California, Colorado, Minnesota, Maryland, and Maine) have already passed EPR laws, and similar legislation has been introduced this year in eight more states. For dealers that ship products into any of the seven states and particularly those using cardboard boxes, plastic wrap, or foodservice disposables, EPR laws may create new reporting, registration and financial responsibilities, NAW asserts. The first EPR law went into effect in Oregon on July 1, bringing much greater attention and scrutiny to the laws as the effect on distributors has become clearer. Here’s how the other six states are approaching EPR and the deadlines for compliance and participation: Maine passed its law establishing a stewardship program for packaging material in July 2021. The state is currently engaging in the formal rulemaking process, with the program set to be fully operational in 2027. In Maryland, Gov. Wes Moore signed S.B. 901 into law this year. The Maryland Department of
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