US Packaging EPR Landscape Expands as States Move Beyond California’s SB 54

Extended Producer Responsibility (EPR) legislation is rapidly expanding across the United States, with seven states now implementing laws that shift waste management costs from municipalities to packaging producers. While California’s SB 54 remains the most influential due to its stringent mandates and $5 billion fund, other states like Maine, Oregon, and Minnesota are establishing their own frameworks for paper and packaging waste. This shift is forcing brands to rethink material choices, package design, and end-of-life responsibility to maintain market access and avoid significant financial penalties.

The US packaging landscape is undergoing a significant shift as EPR laws expand to seven states, including Maine, Oregon, Minnesota, Washington, and Maryland. Maine led the transition in 2021 with its Stewardship Program for Packaging, followed closely by Oregon’s Recycling Modernization Act. According to Sahar Mehrabzadeh, chief revenue officer at Bay Cities, approximately 20% of the US population now lives in a state with EPR requirements. While New York’s legislation has stalled for three consecutive years, other states like Georgia and New Jersey are actively progressing with their own bills, signaling a growing national trend toward producer-funded waste management systems.

California’s SB 54 remains the most comprehensive and demanding framework, covering both consumer and B2B packaging. Key deadlines are approaching rapidly, with source reduction plans due by August 1, 2026, and fee collection beginning on January 1, 2027. The law mandates a 20% plastic reduction by 2030, increasing to 25% by 2032, alongside a 65% recycling rate requirement. By 2032, all packaging in the state must be recyclable or compostable, with non-qualifying materials facing a total ban. Producers who fail to register face immediate market-access bans and potential penalties of up to $50,000 per day.

The implementation of these laws is creating a substantial data burden for producers, particularly small and mid-market companies that lack dedicated compliance teams. Major retailers such as Target, Walmart, and Costco are already integrating EPR compliance into their vendor requirements, further pressuring the supply chain. Beyond compliance, the industry faces legal uncertainty, as seen in early 2026 when a federal injunction paused Oregon’s program. Despite these challenges, experts suggest that early preparation allows brands to influence recycling infrastructure development through eco-modulated fees, potentially lowering future costs as collection and processing capacities grow.