Preparing the Cannabis Industry for Extended Producer Responsibility (EPR) Policies
Updated on May 26, 2026
Since this article was first published, Extended Producer Responsibility policies have continued to expand across U.S. and Canadian cannabis markets. In 2026, packaging‑focused EPR programs are no longer theoretical for cannabis operators—they are active, evolving, and increasingly enforced at state and regional levels.
Extended Producer Responsibility (EPR) is a multinational policy that was developed with the intention of addressing environmental responsibility from a manufacturing and production perspective rather than the standard reactive approach that places most of the burden on consumers.
We break EPR down in the article below; however, it’s important to note that these policies are gaining momentum and will be increasingly knocking at the door of cannabis manufacturers in the near future, if not already.
As an industry, we’re no strangers to strict and inconsistent regulations, and it’s important for us to understand what EPR entails for cannabis operations.
Defining Extended Producer Responsibility
Extended Producer Responsibility (EPR) is a waste-management policy first developed in Europe in the 1990s. In a 2016 OECD guidance (a set of recommendations by the Organization for Economic Co-operation and Development), EPR was defined as such:
Extended Producer Responsibility is an environmental policy approach in which a producer’s responsibility for a product is extended to the post-consumer stage.”
Eijkhout, D. (2019). Extended producer responsibility and the waste hierarchy [Master’s thesis, University of Groningen]. University of Groningen Research Database. https://research.rug.nl/files/36419283/Complete_thesis.pdf
For example, France launched one of the world’s first EPR packaging programs in the early 1990s due to having a deluge of waste products, and Sweden adopted producer-responsibility rules for paper waste in 1994. The idea was subsequently written into EU directives (such as the 2002 WEEE electronics law) and promoted globally by the OECD. Several regions in the United States have already adopted EPR policies that in practice, shift the cost of end-of-life disposal and recycling from taxpayers and municipalities onto the companies that make or sell the products. As a result, producers (including cannabis businesses) are financially (and sometimes operationally) responsible for managing waste from their products.
How EPR Works Today
Under typical EPR law, manufacturers, brand owners or importers of products (e.g., packaging, electronics, batteries) must fund collection and recycling when those products reach the end of their lives. In a packaging-focused EPR, companies register with a state-approved Producer Responsibility Organization (PRO). Each year they report the quantities and types of packaging they sold in that state and pay fees based on the weight and recyclability of those materials. Those fees fund recycling infrastructure, reimburse municipalities for curbside collection, or support improvements to waste-processing facilities.
In effect, EPR “internalizes” the environmental cost of waste—giving companies a financial incentive to use less packaging, use more sustainable materials, and design for recyclability. For example, in France (where EPR originated), the extra fee added by packaging EPR is only about 1–2 euro cents per item, but proponents argue these costs are far lower than the future expense of unchecked plastic pollution.
Understanding EPR in the United States
In the United States, EPR has long applied to specific products. These include electronics, paint, batteries, pharmaceuticals, etc.—with more than 70 state laws in 2011 alone. Only recently have states begun enacting broad EPR laws for packaging. The first such law was Maine’s 2021 Packaging Stewardship Act. Several others followed: as of 2025, at least seven states have active packaging-EPR laws. These include Maine, Oregon, Colorado, California, Minnesota, Maryland, and Washington. Each law is different, but all require producers to finance the recycling of packaging and (often) printed paper.
In another example, Oregon’s law covers plastic packaging, paper, and even foodservice items and requires producers (broadly defined to include manufacturers, brand owners, licensees, importers, etc.) to join a PRO and pay annual fees. Maine’s EPR law focuses on most single-use packaging and tasks producers with funding a stewardship organization. California’s SB54 (2022) similarly obligates “producer” companies to fund statewide recycling to meet aggressive waste reduction targets.
Common EPR policy features include producer registration, annual reporting of packaging volumes, and fee payments by producers into a PRO-managed fund. As a result, many large consumer goods companies have banded together in a nonprofit PRO—the Circular Action Alliance—to administer these programs.
State Variations to EPR Policy
While goals are similar, state laws differ in the details. For instance, covered materials tend to vary: Maine’s law covers only packaging, whereas Oregon and Colorado also include certain paper products. Some laws exempt reusable containers; others exclude specific packaging types (e.g., pallets, industrial packaging). Exemptions vary as well—for example, all the laws carve out small businesses under certain thresholds. Notably, Colorado’s law specifically exempts cannabis packaging (for now) on the grounds that cannabis is regulated like a medical product. Other state laws do not mention cannabis at all.
In California and elsewhere, separate regulations govern cannabis labeling and safety (e.g., child-resistant containers), but the packaging itself is generally subject to the same rules as any other consumer good. Producers in multiple states must therefore track different definitions of “covered packaging”, different fee schedules, and different implementation timelines. Policies in Oregon and Colorado both advanced quickly, requiring producers to register by late 2024 and begin reporting by 2025, whereas Maine’s program is ramping up more gradually (first fee payments start around 2026).
The Impact of EPR on the Cannabis Industry
As observed above, cannabis operations have been somewhat exempt from EPR regulations due to being regulated federally as a medical product. However, with the onset of adult-use bills being passed across the country, we may see the policy landscape begin to shift, bringing cannabis operations in line with the product and manufacturing businesses already adhering to (or preparing for) increasing extended producer responsibility policies.
Cannabis businesses should understand that these policies are inevitable, so they can adjust their operations proactively rather than reactively facing fines or added costs.
Cannabis Cultivators and Product Manufacturers
Companies that grow or manufacture cannabis products are most likely on the front lines of EPR regulation. Any company that grows, formulates, or brands cannabis products and ships them in packaging is effectively a “producer” under packaging EPR. If their state’s law includes cannabis containers, they will need to:
- Join the PRO (Producer Responsibility Organization).
- Report how much packaging they put on the market (by weight and type).
- Pay the associated fees.
For example, a cannabis grower who sells flower in glass jars or plastic bags, or a processor that sells oils in plastic tubs, would count those packaging amounts in its EPR reports. This could add a new line-item cost (the EPR fee) to their business. On the other hand, because EPR rewards lighter/greener packaging with lower fees, cannabis firms may be motivated to redesign containers—using, say, recycled plastics or refillable glass—to minimize waste and cost.
Some states, like New York and Vermont, already mandate sustainable packaging for cannabis; e.g., New York requires 25% post-consumer recycled content in cannabis packages, and Vermont mandates reusable or plastic-free containers. These rules overlap with EPR’s aims of greener design.
Dispensaries and Retailers
Standalone dispensaries or consumption lounges typically sell products under other brands, so they are not considered obligated producers under most EPR laws. In general, “producers” are defined as the brand owner, manufacturer, importer, or licensor of a packaged product—not the store selling it. Thus, a dispensary doesn’t normally have to register or report under EPR policy (unless it also markets its own private-label items).
However, dispensaries will be on the receiving end of EPR in that the wholesale products they buy may carry higher packaging costs. Some retailers might also choose to participate in take-back programs or recycling efforts sponsored by the industry. In fact, industry commentary notes that product stewardship concepts could extend to cannabis. As EPR policies are applied to the cannabis industry, companies could institute take-back programs or finance recycling of cannabis packaging to reduce waste. Dispensaries could support such efforts by educating customers or providing drop-off bins, even if they are not legally required to do so.
Consumption Lounges
In the few states where on-site consumption venues are legal, the situation is similar to dispensaries. Lounges generally sell or supply packaged cannabis products, but they do not “produce” them in the eyes of EPR law. They would not usually register as producers (again, unless they also manufacture or brand products).
Lounges will generate waste—packaging, food-service items, etc.—so they may have an indirect stake in EPR programs. For instance, the EPR law in Oregon explicitly covers takeout foodware, which lounges might use. If a consumption lounge sells beverages or snacks, those items’ packaging could fall under EPR rules. So fundamentally, consumption lounges are mainly impacted by the same issues as a particular state’s foodservice operations.
Benefits and Challenges for Cannabis Operators
Extended producer responsibility laws and policies were born out of good intentions. They played an important role in helping France manage its tremendous waste overage back in the 1990s and can help encourage companies to be more ecologically minded. That said, these benefits to society and the planet come at a cost to producers that can’t be ignored. Let’s take an unbiased view of the benefits and challenges EPR will increasingly have on the cannabis industry.
The Benefits of EPR Towards Cannabis Sustainability
In looking towards the benefits of EPR policy, proponents argue it accelerates recycling and waste reduction. Enforcing producers to pay for end-of-life management, EPR “creates incentives” for companies to minimize waste and use more recyclable materials. For the cannabis industry, this could spur innovative packaging solutions. Increasing the use of glass jars for flower (which are widely recyclable) and designing child-resistant packages manufactured from materials that are easier to recycle seem like low-hanging fruit. However, there are obvious hurdles, in that cannabis packaging (especially for flower) can already be complicated as it must serve multiple purposes to be compliant.
A funded PRO can also improve overall recycling infrastructure, potentially making it easier to recycle cannabis containers. In other words, EPR encourages cannabis firms (like any producers) to become part of the circular economy solution. As one expert notes, the goal of EPR is that “producers have to take responsibility—financial and operational—for the packaging’s end of life,” thereby aligning business decisions with sustainability.
Finally, shifting costs away from consumers and municipalities can garner public support: rather than taxpayers funding recycling, the cannabis packaging producer pays its share. The caveat being, producers may decide to pass the additional costs to consumers to maintain profitability.
EPR Challenges to Cannabis Operators
Many of us in the cannabis industry care about the Earth and love nature in general. As EPR programs mature, packaging decisions increasingly affect downstream costs and reporting complexity.
First, EPR presents a new regulatory burden on an already strained industry. Producers will need to invest additional time and money towards EPR compliance, including tracking packaging types/weights, registering with the PRO, and paying fees. Even small fees add up, especially in an industry already facing high production costs and low margins.
Second, cannabis packaging is often highly specialized: state laws require child-resistant, opaque, tamper-evident containers. These multi-layer or rigid packages can be difficult and costly to recycle. EPR laws might force redesign of these containers in ways that still meet safety rules, creating a technical challenge for product packaging engineers.
Third, regulatory complexity is a legitimate concern. The state-by-state patchwork of EPR laws and policies means a company operating in several states must understand and obey different rules and deadlines. Although not the cannabis industry’s first rodeo in complex adaptation, additional inconsistent regulations are understandably frustrating—especially for multi-state operators (MSOs).
Finally, there is the uncertainty across states on how EPR will be applied. Colorado chose to exclude cannabis packaging, reflecting industry lobbying. In other states, operators might worry about aggressive enforcement or about new costs being tacked onto an already taxed product. And of course, states currently excluding cannabis packaging may update EPR policy as adult-use products take center stage.
6 Steps Cannabis Busineses Can Take to Prepare for EPR
If you operate a cannabis business, the prudent course of action is to prepare for extended producer responsibility policies now. Preparation before enforcement can go a long way in helping minimize disruptions to your purchasing strategy and bottom line.
Below are several ways you can start getting ready for a future where EPR impacts the cannabis industry:
- Stay Informed: Track EPR developments in each state where you operate. Join industry trade groups or subscribe to regulatory updates so you don’t miss a new law or rulemaking.
- Audit Your Packaging: Conduct a detailed inventory of all packaging you use (jars, bags, labels, etc.), by weight and material. This data will be needed for reporting and augmenting your purchase strategy. Use it to estimate potential fees under EPR using currently affected industries as examples. Pay special attention to components (e.g., glass vs. plastic, recyclability) that may affect fees.
- Design for Sustainability: Consider redesigning containers now to reduce waste. Use lighter materials or maximize recycled content. For example, source jars or tubes that meet local recycling standards. Because EPR fees are often lower for recyclable materials, eco-friendly packaging choices can actually save money under EPR.
- Engage with PROs: In each state, a Producer Responsibility Organization (PRO) will oversee the EPR program. In practice, most states have appointed the Circular Action Alliance (a nonprofit formed by major brands) as the PRO. Cannabis companies should consider joining the PRO (or a trade consortium) so they have a voice in fee-setting and program planning. At a minimum, consult with the PRO when it opens registration to obtain guidance on reporting procedures.
- Collaborate on Recycling: Work with local governments or waste vendors to improve actual collection and recycling of cannabis packaging. Some EPR programs will subsidize better recycling infrastructure, and you’ll want to petition for cannabis packaging to be accepted. Consider organizing take-back events or in-store recycling bins for consumers. While not a legal requirement, such initiatives can reduce waste and build goodwill.
- Budget and Plan: While EPR fees vary by program, operators are beginning to factor them into long‑term packaging budgets rather than treating them as one‑off expenses. State compliance may require legal or accounting support, and if you’re a craft or small grow, inquire whether small businesses are eligible for exemptions (e.g., sales under a certain tonnage). Verify if you qualify for any carve-outs in your state law.
By taking these initial steps, cannabis operators can minimize operational disruptions while meeting EPR requirements. Planning ahead by auditing packaging, trimming waste, and watching deadlines could allow cannabis businesses to turn potential costs into opportunities for efficiency and sustainability. If you’re going sustainable to be compliant with EPR, then you may as well leverage it as a positive branding and sustainability statement.
Companies Already Leading the Way
We’d be remiss to not mention a few of our vendor/partners amid a conversation on sustainability. Key to Life prides themselves in using packaging with a very low carbon footprint (you can view their products here).
IHORT’s Q-Plugs are used for germinating seeds and contribute to reducing the use of plastics in the cannabis industry.
Neither of these manufacturers are sponsors of this article; we’re just proud of their products. We have many great products and partners, and these two manufacturers are shining examples of forward-thinking sustainability.
Where Can I Get Help Preparing for EPR Policies?
For cannabis businesses focused on long‑term resilience, understanding how EPR intersects with packaging and procurement is becoming part of operational planning—not just a regulatory checkbox. Non-profit organizations like The Recycling Partnership exist specifically to help businesses of all types, shapes, and sizes build compliance and sustainability into their manufacturing and product packaging business models.
And of course, Omega is here to help. If you’d like to review your current products and packaging to begin searching for more sustainable opportunities, we have a huge procurement network and are happy to assist.
In fact, helping you navigate through the complex cannabis industry is what we do.
Reach out to your account rep, contact us, or join our free VIP program to start up a relationship and get the conversation going with someone on our team. EPR presents new product and packaging challenges, and we’ll succeed through them together.
