Extended Producer Responsibility (EPR) for Packaging - An SMB Guide fo

Why this matters (even if you are “small”)

Packaging EPR is not a “big company only” rule set. Most states that have passed packaging EPR include small producer exemptions, but those exemptions are typically in the $1M to $5M range and or very low tonnage thresholds, not $50M [5]. If you sell nationally, you should assume:

You might be exempt in some states and obligated in others
Your biggest risk is not the fee, it is failing to register or report because you assumed you were exempt

What EPR is in plain English

Extended Producer Responsibility (EPR) is a policy approach that shifts financial and or operational responsibility for end-of-life management (collection, sorting, recycling, disposal) from taxpayers and municipalities to producers that place packaging on the market [2]. For packaging, that usually means:

Register (often via a Producer Responsibility Organization, PRO)
Report packaging data (by material type and weight, often by state)
Pay fees based on what you place on the market (typically weight-based and material-based) [1][2]

The “producer” question - who is on the hook

Most packaging EPR laws use a hierarchy to decide which entity is the responsible “producer” for a packaged product. The common pattern is:

Brand or trademark owner
If the brand owner is not “present” or applicable, then manufacturer, importer, or distributor
Retailers can be pulled in depending on the scenario, especially for remote distribution or private label [5][9][12]

SMB reality check:

If you are a DTC brand shipping in your own boxes and mailers, you are often the responsible producer for the packaging you choose and use
If you are a marketplace seller, private label brand, importer, or you fulfill for others, producer determination gets complicated quickly and varies by state [1][5]

Covered materials - what counts as “packaging”

Definitions vary, but generally “packaging” includes materials used to contain, protect, deliver, or present products, including shipping packaging and often printed paper and food serviceware in some states [2][9]. For e-commerce brands, the usual in-scope list includes:

Corrugated boxes and mailers
Void fill and protective packaging
Labels and tape may be in scope depending on how the state defines covered material categories and “packaging components” [1][13]

The SMB question you asked: “When do we not have to worry at all?”

There is a legitimate “stop worrying” threshold, but it is not “under $50M.” It is typically:

If you are below every relevant state’s small producer exemption threshold for revenue and or tonnage
And you do not sell into a state where you exceed that state’s exemption threshold (sometimes “global revenue,” sometimes “in-state revenue or sales,” depending on the law) [4][6][7][8][10][11][12]

A practical SMB “worry” rule

You likely do not need to participate in packaging EPR programs (registration, reporting, fees) if:

In every packaging EPR state you ship into, you qualify as a “small” or “de minimis” producer under that state’s rules (if you are under $1M in sales overall then you are likely exempt and most states have their own minimums of shipping to that state)
You document the basis for exemption (revenue, tons, and measurement methodology)
You re-check annually because growth can push you over thresholds

Important caveat: Even if you are exempt from EPR fees and reporting, you can still be exposed to other packaging rules like recyclability labeling restrictions in states like California [14]

The key size breaks (what “small” means in real programs)

Below are the most commonly cited “de minimis” or “small producer” breaks from primary or near-primary sources. Use this as a quick reference in your guide.

Oregon (Recycling Modernization Act)

Small producer exemption includes producers with:

Less than $5M in gross annual international revenue, or
Less than 1 metric ton of covered products placed on the Oregon market (with aggregation across “associated producers” concepts) [3][16]

Colorado (Producer Responsibility Program)

Producer exemptions include:

Less than $5M in realized gross total revenue (with certain exclusions like on-premises alcohol sales), or
Less than 1 ton of covered materials used for products sold or distributed within or into Colorado [7][8]

Minnesota (Packaging Waste and Cost Reduction Act)

“De minimis producer” includes:

Introduced less than 1 ton of covered material into Minnesota, or
Earned global gross revenues of less than $2,000,000 [10]

Maine (Stewardship program for packaging)

Maine’s statute provides an exemption if:

Producer realized less than $2,000,000 in total gross revenue in the prior year
With a transitional period where the threshold is $5,000,000 for the first three years after a key program contract effective date window
Or if the producer used less than 1 ton of packaging material (per statutory language) [11][15]

Maryland and Washington (packaging EPR enacted 2025)

Secondary but credible legal analyses summarize de minimis exemptions as:

Both states: de minimis producers introducing less than 1 ton of packaging materials into the state per year
Maryland: around $2M global revenue threshold
Washington: around $5M revenue threshold [6][12]

California (SB 54)

California’s program is broader and heavily driven by rulemaking. A key public rulemaking document indicates:

Small businesses that meet the definition of producer may be considered small producers if gross sales of less than $1,000,000 in California in the most recent calendar year, tied to producer definitions in statute [9]

What SMBs actually have to do if they are not exempt

If you clear a threshold in any EPR state, the operational requirements usually boil down to three things:

1) Registration and PRO participation

Most states expect producers to join a PRO, though some allow individual compliance plans [2][5]. Colorado explicitly states producers must participate to sell or distribute covered materials after program requirements take effect [8].

2) Reporting packaging data

You should expect to report, by state, by material category, and by weight. Reporting often requires:

Material type classification
Weight of packaging placed on market
Allocation of units and packaging into each state based on sales or shipments [1][2]

3) Paying fees

Fees vary by state and are expected to be tied to packaging type and weight, often with design incentives and eco-modulation concepts in the policy design [1][2][5].

The Minimum Viable Compliance (MVC) system for SMBs

If your guide helps SMBs build one system, it should be a packaging data foundation that can be translated to each state’s reporting format.

MVC dataset (what to track)

Packaging SKU catalog (every box, mailer, label format, void fill type)
Packaging bill of materials (BOM) per shipment type or per product family
Component-level weights (grams preferred)
Material classifications mapped to common EPR categories
State allocation method (ship-to state from order data is best)
Documentation for assumptions and estimation methods [1][2]

Why this matters

Most EPR pain comes from retrofitting data you do not have. Building MVC early prevents a scramble when you cross a de minimis threshold.

A decision tree you can publish (SMB-friendly)

Step 1 - Where do you ship

List all states you ship into and annual revenue by state
Flag known packaging EPR states (at minimum: CA, CO, ME, MN, OR, MD, WA) [2][5]

Step 2 - Are you a producer in each state

Brand owner, importer, distributor, retailer scenarios
If ambiguous, assume you might be the producer until you confirm otherwise [5][13]

Step 3 - Do you qualify for exemption in that state

Compare your revenue and packaging tonnage against that state’s threshold
Verify whether threshold is global revenue or in-state revenue, if specified
If you are exempt, document it and set an annual re-check calendar [3][7][10][11]

Step 4 - If not exempt, build the compliance path

Join the PRO or pursue individual plan if available
Build reporting dataset and submit required filings
Budget for fees based on weight and materials [2][8]

2026 risk: EPR plus labeling and marketing claim enforcement

Even if an SMB is exempt from EPR participation, packaging rules are expanding into recyclability claims and labeling restrictions in some jurisdictions. California’s pending and active packaging policy environment is a good example of why “we are too small to care” can still fail on the labeling and claims side [14].

30-60-90 day plan for brands under $50M

0-30 days: Determine exposure

Build state shipment and revenue view
Identify who is “producer” for each packaging type and scenario
Run exemption checks for each EPR state you ship into [5][11]

31-60 days: Build your MVC dataset

BOM and weights by packaging component
Material category mapping
State allocation method [1][2]

61-90 days: Operationalize

Assign an internal owner and compliance calendar
If obligated, initiate PRO registration process and plan reporting readiness
Create an annual re-check rule tied to sales growth and packaging changes [2][8]

FAQ section you should include (answers SMBs actually need)

If no state has revenue over the de minimis threshold, can we ignore EPR
- Often yes, but only if you also meet any tonnage thresholds and you document the exemption basis and re-check annually, since thresholds and interpretations vary by state [5][7][10][11]
Are thresholds based on global revenue or in-state sales
- It varies by state and sometimes by program, Oregon guidance explicitly discusses global revenue interpretation in its exemption FAQ [3]
Do we have to report shipping packaging like boxes and mailers
- Typically shipping packaging is within scope for e-commerce operations, but “covered” definitions differ and must be confirmed by state program guidance [1][13]
If we are exempt from fees, do we still have to register
- Depends on the state’s rules. Some states exempt small producers from the full requirement set, others may still expect limited reporting. Treat this as state-specific [2][3][7]

Sources

[2] Sustainable Packaging Coalition - EPR policy guide and database https://epr.sustainablepackaging.org/
[3] Oregon DEQ - Recycling Modernization Act exemptions FAQ (Small Producer Exemption) https://www.oregon.gov/deq/recycling/Documents/RMAExemptionsFAQ.pdf
[4] Holland & Knight - State EPR laws overview and typical exemption ranges https://www.hklaw.com/en/insights/publications/2026/01/the-latest-pandoras-box-what-you-need-to-know-now-about-state-epr-laws
[5] Holland & Knight - Seven states with EPR programs list context https://www.hklaw.com/en/insights/publications/2026/01/the-latest-pandoras-box-what-you-need-to-know-now-about-state-epr-laws
[6] Nutter - Summary of Maryland and Washington exemptions ($2M MD, $5M WA, 1 ton) https://www.nutter.com/trending-newsroom-publications-environment-energy-insights-june-2025
[7] Colorado Revised Statutes - Producer exemptions https://colorado.public.law/statutes/crs_25-17-713
[8] Colorado Department of Public Health and Environment - EPR program requirements and participation https://cdphe.colorado.gov/hm/epr-program
[9] CalRecycle - SB 54 Notice of Proposed Action (small producer under $1M CA gross sales) https://www2.calrecycle.ca.gov/Docs/Web/131169
[10] Minnesota Statutes - De minimis producer definition (1 ton or $2M global) https://www.revisor.mn.gov/statutes/cite/115A.1441
[11] Maine Statutes - 38 M.R.S. §2146 revenue exemption language ($2M, transitional $5M) https://legislature.maine.gov/statutes/38/title38sec2146.html
[12] DLA Piper - Maryland EPR exemptions summary ($2M global or 1 ton) https://www.dlapiper.com/en-us/insights/publications/2025/05/maryland-and-washington-enact-epr-laws
[13] RILA - Retailer guide to packaging EPR complexity and definitions (PDF) https://www.rila.org/resources.download?downloadPath=%2Fgetmedia%2Fad7b946d-eba1-4bb5-bd7e-0cd316820c0d%2FA-Retailer%25e2%2580%2599s-Guide-to-Packaging-EPR-Requirements-in-the-United-States.pdf%3Fext%3D.pdf&downloadTitle=A+Retailers+Guide+to+Packaging+EPR+Requirements+in+the+United+States
[14] Packaging Dive - 2026 packaging regulation context including labeling and policy acceleration https://www.packagingdive.com/news/packaging-policy-regulation-2026-extended-producer-responsibility-labeling/810561/
[15] Maine LD 1423 chaptered statutory text excerpt showing revenue exemption language https://legiscan.com/ME/text/LD1423/id/3257890/Maine-2025-LD1423-Chaptered.pdf
A [1] EcoEnclose - EPR Packaging Requirements guide https://www.ecoenclose.com/resources/epr-packaging-requirements
[16] Oregon DEQ webinar deck excerpt on small producer exemption ($5M global revenue or 1 metric ton) https://productstewardship.us/wp-content/uploads/2024/09/OR-DEQ-Packaging-EPR-Webinar-4-E-Commerce-and-Online-Retail-Packaging-1.pdf

Extended Producer Responsibility (EPR) for Packaging - An SMB Guide for Brands Under $50M