New Year, New Packaging Requirements: Extended Producer Responsibility Update

State extended producer responsibility (EPR) programs for packaging materials are no longer on the horizon — as we enter 2026, requirements in some states have already taken effect and more will be implemented this year. Last year, packaging “producers,” including brand owners, manufacturers, distributors, and others saw programs move into operational phases, primarily through a single Producer Responsibility Organization (PRO), the Circular Action Alliance (CAA). Implementation continues across programs in Oregon, Colorado, and California, as well as other states planning to set new requirements. As we begin 2026, covered producers should review these changes and assess the appropriate compliance methodology within their supply chains.

Oregon: Rough Start

Oregon’s EPR program was the first to take full effect with invoices issued to producers in July 2025. Reportedly, initial revenues are being used to establish program infrastructure such as recycling carts, trucks, educational materials, and drop-off recycling centers. CAA submitted an unredacted version of its first financial report to Oregon, which shows CAA developing a national infrastructure based on its approach in Oregon. Many producers continue to struggle, however, with determining which products they should report and how responsibility should be determined within their supply chains. Product data and tracking systems vary among producers and regional/national supply chains present complexities, all of which can affect compliance.

Litigation filed by Sidley on behalf of the National Association of Wholesaler-Distributors in the U.S. District Court for the District of Oregon continues to proceed. Plaintiff has moved for a preliminary injunction to halt the EPR requirements, and the matter is currently scheduled to be heard by the court on February 6, 2026. The case is National Ass’n of Wholesaler-Distributors v. Feldon et al., Case No. 3:25-cv-01334-SB.

Colorado: Implementation Clock is Ticking

Colorado has defined the implementation timeline for its packaging EPR program. Recently, on December 9, 2025, the state agency overseeing the program approved CAA’s program plan, triggering the statutory requirement that implementation begin within six months — by June 9, 2026. CAA previously set a deadline of July 31, 2025, for producers to report data and has now stated they will collect fees pending full implementation of the program, with a deadline of January 1, 2026 for remitting initial dues. In CAA’s Q4 2025 webinar update, Colorado leadership emphasized that the program is 100% producer-funded and tied to fee mechanics for covered materials. Producers should take stock, if they have not already, of their materials and supply chain relationships in Colorado and consider any changes needed before the requirements take full effect.

California: Registration and Baseline Reporting are Underway

California’s SB 54 program is moving toward being fully implemented by 2027, and initial obligations are already here. The first key producer reporting deadline to provide product and material data was November 15, 2025. California program leaders have submitted regulations to the Office of Administrative Law and final regulations are expected in the first part of 2026. Producer should review the draft regulations, if they have not already, and assess whether they should report in California and the scope of the report. In particular, California contains special rules and exemptions that may affect certain producers (such as agricultural producers). Additional requirements and deadlines are expected to be set with publication of the final regulations.

Around the Corner: Maryland, Minnesota, Washington, and Maine

Maryland, Minnesota, Washington, and Maine all have EPR programs still in the planning stages, with CAA selected as the PRO in Maryland and Minnesota and pursuing appointment in Washington and Maine. But producer reporting deadlines for these states are fast approaching, beginning May 31, 2026 for Minnesota, Maryland, and Washington. Maine’s deadline will be within 90 days of its producer portal launch. CAA reports that it is trying to harmonize policies across states; but, meaningful differences in producer identities and packaging classifications remain. Impacted companies should incorporate these states into their EPR and supply chain planning.

Business Takeaways

The initial roll-out of state packaging EPR requirements has presented numerous hurdles and complexities for businesses, especially those with regional or national supply chains. As program requirements continue to take effect in 2026, affected businesses should consider the following.

• Determine producer responsibility for product lines: Characterize the “producer” within complex supply chains and reassess business mechanisms that impact compliance obligations.
• Reporting readiness and audit defense: Examine data systems and processes for potential improvements and to ensure support across state EPR requirements, as more come online.
• Regulatory engagement: Consider engagement with state agencies and legislatures as EPR legislation, implementation, and fee methodologies evolve. Stakeholders can participate in the public comment process for states drafting new EPR regulations, and consider engaging with legislatures on EPR developments in states such as New York, Massachusetts, Rhode Island, New Jersey, Illinois, Tennessee, North Carolina, and Hawaii.

This post is as of the posting date stated above. Sidley Austin LLP assumes no duty to update this post or post about any subsequent developments having a bearing on this post.