Understanding Extended Producer Responsibility
in the United States and Canada
Extended Producer Responsibility (EPR) is a legislative tool and policy approach that makes producers financially responsible for the entire lifecycle of their products, including design, takeback, recycling, and final disposal. EPR plays a significant role in promoting reliable and sustainable product designs, improving recycling efforts, and reducing waste.
While EPR legislation was first implemented in the European Union (EU), it has since expanded worldwide, including North America. EPR legislation in the United States and Canadian provinces are variable, so understanding the nuances of EPR legislation and your business is critical to determining applicability. If your company places products or packaging on the market in either country, you are likely considered a producer and must meet EPR compliance obligations.
While any type of product can fall within the scope of EPR legislation, the three most common product categories are packaging, e-waste, and batteries, as legislators have prioritized these waste streams due to their volume and toxicity. This e-book will focus on legislation and recent developments surrounding those three waste streams in both the United States and Canada, and explain how Source Intelligence's EPR solution can help simplify compliance.
The Basics of Extended Producer Responsibility
What is Extended Producer Responsibility (EPR)?
Extended Producer Responsibility (EPR) is a legislative tool and policy approach that makes producers financially responsible for the entire lifecycle of their products, including design, take-back, recycling, and final disposal. The shared purpose of EPR legislation worldwide is to promote a circular economy by increasing product recycling rates by supporting recovery and recycling schemes and reducing landfill waste.
EPR legislation was first introduced in the European Union, but it has since expanded around the globe, including in North America. While EPR legislation has been active in Canada for more than 30 years, it has started to gain traction across the United States (U.S.) within the past few years. Many states have already enacted some form of EPR legislation, and several others have introduced EPR bills that are expected to become law.
Across the world, EPR legislation is typically focused on three product waste streams: packaging and packaging waste, electrical and electronic equipment (e-waste), and batteries. Legislators have prioritized these categories due to their volume and toxicity.
Who is Obligated to Comply with EPR Legislation?
Producers are obligated to follow EPR legislation. In the context of EPR, the term “producer” applies to any business that manufactures, sells, brand-owns, or imports products or product packaging in an area with active EPR legislation.
Since EPR is a universal tool, EPR legislation varies worldwide. Companies that meet producer obligation criteria must check for EPR legislation within each area they operate to assess their compliance obligations. Countries may also have applicability thresholds such as business turnover rate and the quantity or weight of products or packaging placed on the market.
How Do Producers Manage EPR Compliance?
While EPR compliance obligations differ in each area (region, province, country, state, etc.), most policies follow a similar structure.
- Register with a local authorized body
- Report the quantity of waste your company has placed on the market
- Finance the management of EPR programs and the recycling of products your company has placed on the market and recycling programs
For example, if your company is a producer of electrical and/or electronic equipment, fees associated with its EPR compliance obligations will help fund e-waste recycling programs.
Active EPR Legislation in the U.S.
As mentioned earlier, EPR legislation has been active in Canada for over 30 years but is relatively new in the United States. Recent EPR legislation in North America has focused on the same waste streams as the rest of the world: packaging and packaging waste, e-waste, and batteries. To better understand how EPR works in practice, we will explore a few examples of active legislation in the U.S.
Batteries
Battery EPR legislation was one of the first types of EPR legislation introduced in the U.S., starting in the 1990s. In its current state, battery compliance follows the standard EPR obligations: producers must register their company, develop a comprehensive waste management plan, report the number of batteries and amount of battery waste placed on the market, and finance used battery recycling. However, battery legislation varies between states, with each state having differing guidelines on which batteries fall under EPR and which programs are financed.
Examples of Battery Legislation
New York
New York enacted battery EPR legislation in 2010. Currently, the legislation focuses solely on the recycling of rechargeable batteries. Various chemical compositions are within the law's scope, including sealed lead, NiCd, and lithium-ion. The law does not apply to batteries over 25 lbs., single-use or non-rechargeable batteries (such as standard AA alkaline batteries), or batteries in generators and automobiles.
It is also illegal for New York consumers to dispose of rechargeable batteries in the trash. Instead, retailers that sell covered batteries must accept used rechargeable batteries for recycling. Manufacturers (producers) of covered batteries are responsible for financing the collection and recycling of batteries from retailers and educating consumers on proper recycling procedures. Finally, producers must submit annual compliance reports to the New York Department of Environmental Conservation.
California
In 2022, California overhauled the state’s existing battery EPR programs with the passing of the Responsible Battery Act of 2022 (AB 2440) and the expansion of the Electronic Waste Recycling Act of 2003 (SB 1215). AB 2440 replaced the Cell Phone Recycling Act of 2004 and the Rechargeable Battery Act of 2006, while SB 1215 expanded existing legislation to include battery-embedded products and broadened the manufacturer criteria.
Under AB 2440, battery producers must create or fund stewardship programs for collecting and recycling covered batteries. They must also report to the CalRecycle program with a list of all covered batteries and brands that they sell, offer for sale, distribute for sale, or import on an annual basis.
Under SB 1215, manufacturers of products with embedded batteries must notify retailers who charge an e-waste recycling fee at the point of sale. This fee can be absorbed by the retailer instead of passed onto the consumer, but consumers must be notified during the transaction. Manufacturers must also report to CalRecycle each year.
Learn more about EPR obligations in North America
You’ve just explored the basics of EPR and active battery legislation in the United States. Next, discover e-waste and packaging regulations, recent EPR developments in North America, key differences between U.S. and Canadian requirements, practical steps for managing EPR compliance, and how Source Intelligence’s EPR solution streamlines data collation and reporting.
Read the full e-book to stay prepared for emerging EPR legislation.