SBA Calls for Federal Scrutiny of State EPR Laws

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In comments submitted October 30, 2025, the Small Business Administration’s (SBA’s) Office of Advocacy is calling for the federal government to take action against state extended producer responsibility (EPR) programs “as barriers to interstate commerce.”

SBA’s comments are part of a larger document submitted in response to an August 2025 Department of Justice (DOJ) request for information on state laws that may adversely affect the national economy.  The agency highlights EPR programs’ fees and complexity, which SBA argues disproportionately burden small businesses.

Oregon’s EPR Program

SBA directs much of its criticism on Oregon’s EPR program for packaging, paper, and serviceware, which it describes as especially burdensome.

The law’s broad definition of “producers,” which includes wholesalers and distributors, affects businesses “who have no control over packaging design,” SBA writes.  In addition, while many state EPR laws require producers to join a producer responsibility organization (PRO) that collects fees and administers the program, SBA contends that Oregon’s PRO structure is monopolistic.

“Unlike traditional EPR programs that target specific products with transparent fees, Oregon’s system delegates vast regulatory authority to a single private entity, the Circular Action Alliance (CAA), which operates with a confidential fee methodology and minimal oversight,” the comments state.

SBA’s recommendations extend beyond Oregon, however.  The agency advocates for EPR laws to be struck down, calls for a Federal Trade Commission (FTC) investigation into whether PRO fees violate federal antitrust laws, and urges greater fee transparency and state oversight.

“Most importantly, other states should avoid Oregon’s model of delegating broad regulatory power to private monopolistic entities without adequate procedural protections,” SBA writes.  “Future EPR legislation should maintain direct state oversight, provide competitive alternatives to single PROs, and ensure that compliance costs are proportionate to businesses’ actual control over packaging decisions and ability to bear regulatory burdens.”

Addressing State Inconsistencies

Other commenters echoed concerns about the economic impacts of EPR laws, emphasizing inconsistencies among state programs.  The American Chemistry Council (ACC), the American Institute for Packaging and the Environment (AMERIPEN), and the National Restaurant Association all cited conflicting definitions, requirements, and program structures as drivers of cost and compliance challenges.

Notably, in its September 15 comments, ACC suggested that a federal EPR program may be the solution to these difficulties.  “EPA could establish a federal framework that promotes a common approach to EPR and recycling,” ACC stated.  “Setting common definitions, metrics, and data collection standards, could support compliance and stimulate the domestic economy.”

ACC also urged federal preemption of other state chemical restrictions, including PFAS laws and California’s Proposition 65.

The docket for DOJ’s request for information is available here.

Reminder: Upcoming New York Carpet EPR Deadlines

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New York’s carpet extended producer responsibility (EPR) law will soon take effect, with important deadlines on the horizon for producers.  As discussed in a previous post, the law requires manufacturers to fund and manage the collection and recycling of post-consumer carpet sold in the state, while also phasing in recycled content minimums and a prohibition of PFAS in carpet products.  Oversight and enforcement will be carried out by the New York State Department of Environmental Conservation (NYSDEC).

Here are the key deadlines producers should keep in mind:

  • Dec 31, 2025: Producer or representative organization plans due to NYSDEC (date set via 2023 chapter amendment).
  • July 1, 2026: Cannot sell carpet in NY unless participating in an approved plan; collection and recycling program begins.
  • Dec 31, 2026: PFAS-containing carpet ban takes effect.

Producers can find additional details on program implementation on NYSDEC’s Carpet Recycling page.  Specific information on the PFAS prohibition can be found in a previous post.

Colorado Proposes Amendments to EPR Regulations to Implement Eco-Modulation

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The Colorado Department of Public Health and Environment (CDPHE) has released a proposed rule to introduce eco-modulation—a system that lowers dues for producers who meet specific sustainability incentives under the state’s extended producer responsibility (EPR) program for packaging.

Under Colorado’s EPR program, producers of packaging and paper products will begin paying dues to a producer responsibility organization (PRO) in January 2026 and annually thereafter.  When CDPHE first adopted its implementing regulations in June 2024, it left the eco-modulation criteria undefined.  The new proposal fills in those details.

Like other state packaging EPR laws, Colorado’s program aims to shift recycling costs from taxpayers to producers.  Through a PRO, producers are responsible for expanding recycling access, increasing recycling rates, and funding the recycling system.

Eco-Modulation Benchmarks

The proposed rule establishes several voluntary benchmarks that allow producers to reduce their dues by achieving certain environmental performance goals:

  • On-package sorting criteria: Inclusion of sorting instructions and guidance directly on packaging.
  • Local end use: Use of materials that are on the state’s “minimum recyclable” list, contain at least 20% US-generated postconsumer-recycled content, and are utilized by an end-market business in Colorado.
  • Compostability: Use of a material that meets ASTM standards for compostability and complies with certain labeling requirements.
  • Case study: Development of a case study demonstrating measurable benefits to recyclability, waste reduction, or other environmental outcomes for a covered material.

Each benchmark achieved earns producers a 1% reduction in dues for each qualifying material.  Bonuses will be applied to 2027 invoices and all invoices thereafter, except the on-package sorting benchmark, which will only be available starting in 2029.

The proposal additionally provides a pathway for producers to dispute the final application of eco-modulation factors to their dues, and eliminates a requirement that producers “submit documents and records to the PRO if they believe they are exempt from covered material.”

According to CDPHE’s website, the public comment period for the rulemaking ended September 28, 2025.  However, the page states that the Solid & Hazardous Waste Commission is currently accepting comment, and “strongly encourages” that comments be submitted by November 7.  CDPHE will present the commission with its proposed amendments on November 18, 2025.

The statement of purpose accompanying the proposed rule can be found here.

New York to Ban PFAS in Carpet Beginning December 2026

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A New York state law will ban the sale of carpet containing or treated with PFAS “for any purpose” starting December 31, 2026—following in the footsteps of other states, such as Colorado and Maryland, which have already forbid the intentional use of so-called “forever chemicals” in carpeting.

Like those states, the law broadly defines PFAS as “a class of fluorinated organic chemicals containing at least one fully fluorinated carbon atom.”  The term “carpet” is also defined expansively, encompassing most manufactured articles that are:

  • Used by consumers;
  • Placed on walking surfaces (including outdoors); and
  • “Primarily constructed of a top surface of synthetic or natural face fibers or yarns or tufts attached to a backing system made of synthetic or natural materials.”

Handmade rugs, area rugs, and mats are excluded from the law’s scope.

The ban was originally set to take effect in 2024, but state lawmakers postponed its implementation in 2023.  To date, it does not appear that any New York lawmaker has proposed legislation to extend its effective date again, however.

This prohibition is part of New York’s broader carpet extended producer responsibility (EPR) framework.  As discussed in a recent post, the EPR program will require that carpet manufacturers fund a carpet collection program and phases-in post-consumer recycled content requirements.

According to a New York State Department of Environmental Conservation (NYSDEC) webpage, the agency is currently “in the preliminary stage of developing” regulations to implement the program and its associated requirements.

New York Carpet Producer Responsibility Program to Launch January 2026

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Carpet manufacturers selling in New York state will soon be required to fund a carpet collection and recycling program under New York’s new carpet extended producer responsibility (EPR) program, which is set to begin July 1, 2026.

New York’s carpet EPR law took effect in December 2024, and requires that carpet producers establish or join a collection program approved by the New York State Department of Environmental Conservation (NYSDEC).  Producers may comply individually or by participating in a “representative organization”—the equivalent of a producer responsibility organization (PRO) under other EPR frameworks.

Covered Products

The program applies to most carpet types sold in New York, including but not limited to:

  • Broadloom carpet
  • Modular carpet tiles
  • Artificial turf
  • Carpet pads and underlayment

Handmade rugs, area rugs, and mats are excluded from the program’s scope.

Statutory Requirements

The law establishes phased-in requirements for recycled content and recycling performance based on the number of years following NYSDEC’s approval of a producer’s initial program plan.

One year after plan approval:

  • All carpet sold must contain at least 10% post-consumer recycled content.
  • All carpet must be accompanied with the producer’s name and contact information, as well as the material, composition, and construction type.

Five years after plan approval:

  • All carpet sold must contain at least 20% post-consumer recycled content.
  • Producers must achieve a 30% recycling rate, including at least 10% closed-loop recycling.

Ten years after plan approval:

  • All carpet sold must contain at least 30% post-consumer recycled content.
  • Producers must achieve a 50% recycling rate, with at least 20% closed-loop.

Fifteen years after plan approval:

  • Producers must achieve a 75% recycling rate, of which 40% must be closed-loop.

In addition, starting December 31, 2026, no carpet sold in New York may contain or be treated with PFAS for any purpose.

If a producer or representative organization fails to meet its performance targets, starting four years after plan approval, NYSDEC will assess a penalty of $0.25 per pound for the shortfall—the difference between the actual amount recycled and the amount required to meet the goal.

Key Deadlines
  • December 31, 2025: Deadline for producers or representative organizations to submit their collection program plans to NYSDEC. The department must approve or reject plans within 90 days.
  • July 1, 2026: Producers may not sell carpet into the state unless participating in an approved collection program plan.
  • December 31, 2026: Ban on PFAS-containing carpet takes effect.
  • July 1, 2027: Producers or representative organizations must submit their first annual report to NYSDEC on their program’s implementation.

NYSDEC’s website states that it is “in the preliminary stage of developing” regulations to implement the law.  More information is available in a June 2025 NYSDEC webinar slide deck.

California Packaging EPR Rulemaking Resumes With Key Deadlines Ahead

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On August 22, 2025, CalRecycle published proposed regulations to implement California’s SB 54, which imposes a state extended producer responsibility (EPR) program for single-use packaging and plastic food service ware.  Public comments on the proposal are due October 7, 2025, the same day CalRecycle will hold a hybrid public hearing.

The rulemaking is CalRecycle’s second attempt to implement SB 54.  In March 2025, California Governor Gavin Newsom directed CalRecycle to restart the rulemaking process, citing concerns with its costs.

What does SB 54 Require?

SB 54 is designed to shift the burden of plastic pollution from consumers to producers, which are “typically the companies that create—or package their products in—single-use packaging and single-use plastic food service ware,” according to CalRecycle.  Beginning in 2027, producers will pay fees totaling $500 million per year to offset recycling costs and environmental impacts.

By 2032, all covered materials must be recyclable or compostable, and at least 65% must actually be recycled.  SB 54 also mandates a 25% source reduction in plastic covered material compared to 2023.

Upcoming Compliance Deadlines for Producers

Producers face several near-term obligations under the program:

  • September 5, 2025: Deadline to register with California’s inaugural producer responsibility organization (PRO), Circular Action Alliance (CAA), which will oversee program administration and fee collection.
  • September 15, 2025: CAA opens its reporting portal.
  • November 15, 2025: Deadline to submit 2023 supply data through the portal.

As discussed in a previous blog post, an increasing number of states are implementing packaging EPR laws.  Our team is available to help businesses navigate this evolving regulatory landscape.

EPR Packaging Laws: Key Requirements and Compliance Challenges

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A significant regulatory shift is underway across the United States as multiple states adopt extended producer responsibility (EPR) laws targeting packaging waste.  In 2025, Maryland and Washington State joined a growing list of jurisdictions—including Maine, Oregon, Colorado, California, and Minnesota—that now require producers of packaged goods to engage in one or more of the following: funding or managing recycling programs, reporting material use, and meeting eco-design standards.

Under these laws, companies that introduce packaged goods into covered states often must register with a producer responsibility organization (PRO), submit detailed data on packaging materials, and pay eco-modulated fees based on environmental characteristics such as recyclability, toxicity, and use of post-consumer recycled content.  Maryland’s law is particularly notable for permitting multiple PROs, opening the door to competitive service models.  Washington’s SB 5284, enacted in May 2025, emphasizes equitable access to recycling across rural and underserved communities.

Key elements across state EPR packaging laws include:
  • Mandatory producer registration with PROs or state authorities
  • Annual data submissions on packaging volume, format, and materials
  • Fee structures that reward low-impact design, such as compostability or reusability
  • Coverage of a broad range of industries, including food and beverage, e-commerce, and personal care
  • Implementation timelines beginning in 2025 and accelerating through 2030

Companies should anticipate increased scrutiny of packaging design and growing complexity in compliance as additional states consider EPR legislation.  The resulting patchwork of state requirements will demand careful monitoring and tailored compliance strategies.

Preparing for What’s Ahead

As this regulatory landscape evolves, many companies are beginning to review packaging portfolios, evaluate data collection capabilities, and consider how these rules may affect their compliance, contracting, and product design strategies.  Early engagement with legal, regulatory, and sustainability advisors may help manage risk and identify business opportunities in a more circular packaging economy.

Our team continues to monitor these developments closely and is available to assist with compliance planning, legal analysis, and multi-state tracking strategies tailored to your operational footprint.