The Impact of Extended Producer Responsibility Laws on the Coffee Industry

The Impact of Extended Producer Responsibility Laws on the Coffee Industry

The Impact of Extended Producer Responsibility Laws on the Coffee Industry

By Rachel Melissa & Maureen Bayer, Tonkon Torp LLP

New Extended Producer Responsibility (EPR) laws are popping up in states across the country, and the coffee industry will undoubtedly be affected by these emerging regulatory schemes. EPR programs, in very general terms, require a manufacturer to assume financial responsibility for the ultimate disposal or recycling of its products. States began implementing EPR programs decades ago to fund the disposal and recycling of many items such as electronics, mattresses, glass bottles, and aluminum cans.

This newest form of EPR law is focused mainly on product packaging. Oregon is the front-runner in this effort; its 2021 passage of the Plastic Pollution and Recycling Modernization Act (RMA) was the first in a flurry of EPR laws, with Colorado’s Producer Responsibility Program for Statewide Recycling Act (PRP) following close behind. As of March 2025, three additional states—California, Minnesota, and Maine—have enacted EPR laws, and numerous additional states are actively considering EPR legislation. The overarching goal of these laws is to encourage the use of easily recyclable materials, build-up statewide recycling capacity and availability, and ease the financial burden on consumers and local communities.

Importantly, these new EPR laws apply to any covered business that sells or distributes its products in or into that state, regardless of where the business is located. This means that a coffee roaster based in New York that sells or distributes its products in Oregon must comply with Oregon’s EPR law. Compliance with Oregon’s law involves reporting the amount of packaging and other covered materials (by weight) that enter the state over the course of a year, and paying fees based on those quantities. Those fees will fund improvements in and management of the state’s recycling program.

Is your business affected by these new packaging EPR laws? To figure this out, you must determine: (1) if the materials associated with your products are covered by the law and (2) if you are the obligated “producer” of those materials. These two inquiries are essential to ensuring compliance and minimizing risk.

What materials are covered by the law?

While each state’s law is different, the materials covered by the EPR laws generally involve the same three categories: packaging, food serviceware, and paper. Whether the material is recyclable, compostable, or otherwise “eco-friendly” is irrelevant: all types of disposable materials in these categories are included within the scope of the laws, although the fees associated with more sustainable materials will generally be less than for materials that are difficult to recycle.

“Packaging” covers any single-use materials that are used to contain or protect a product. For the coffee industry, this will include disposable bags, canisters, or other containers used to contain coffee beans or coffee grounds; coffee pods; boxes or bags that hold coffee filters; outer packaging and labels; paper bags and other service packaging at retail establishments; and all shipping materials and tape—just to name a few. Some states, like Oregon, include most business-to-business (B2B) packaging in the scope of its law, while other states, like Colorado, exempt B2B packaging.

Food serviceware is another broad category that is certain to affect the coffee industry. This category includes disposable cups, plastic lids, straws, beverage trays, stirrers, and any other items that are used to contain or consume ready-to-eat food or beverages.

The category of printing and writing paper is less likely to be of concern to the coffee industry. However, this category would apply to companies that distribute paper catalogs to retailers or consumers.

Who is a Producer?

Once you’ve determined that your business utilizes covered materials, you will then need to determine if your business is obligated to report those materials as a “producer” under the laws. The first question is whether an exemption applies. Oregon’s RMA exempts “small producers,” which is defined to include businesses that have a total annual revenue under $5 million or that generate less than one ton of covered materials in a year. Colorado’s producer exemptions are similar.

Unless your business is exempt, you will have to determine which materials your business is responsible for reporting under the EPR laws. Depending on the circumstances, the producer of a covered product may be the entity that manufactures the packaged item, the licensee of a brand or trademark under which a packaged item is sold, the entity that imports the packaged item into the United States, or the entity that first distributes the packaging into the state.

For example, if your business manufactures roasted coffee beans, owns the brand name, and directs the specifications for the packaging of those beans, your company is the obligated producer in both Oregon and Colorado. For some materials, however, the obligated producer differs from one state to another: if your business is a retail coffee shop that uses branded paper bags, the bag manufacturer would be the obligated producer of those bags in Oregon, but in Colorado the retail coffee shop would be the obligated producer of the bags.

Because this analysis can be complex, we highly recommend seeking legal counsel to help you determine whether you are an obligated producer of the different materials used by your business, and how that obligation differs from state to state.

My business is a producer! Now what?!

Step #1: Register. The most critical first step is to register with the Professional Responsibility Organization (PRO) for each state in which your business is an obligated producer. The PRO for Oregon, Colorado, California, and Minnesota is Circular Action Alliance (CAA). Registration is very simple and straightforward on CAA’s website.

Step #2: Report. Once your business is registered with CAA, you will have access to guidance materials on the CAA producer portal. These materials will help you through the process of reporting your materials by weight and type. Critically, Oregon’s deadline for producers to register and report to CAA is March 31, 2025. Colorado’s deadline for producer reporting to CAA is July 31, 2025.

Step #3: Pay fees. After you’ve registered with and reported to CAA, your business will begin paying fees. Oregon’s first round of producer fees will be due on July 1, 2025. While the fee rates have not been finalized, estimates are available through CAA and final fee schedules will be released in June. Colorado’s first round of fees will be due on January 1, 2026.

Want to learn more? Come see us at Coffee Fest in Portland, Oregon on Friday, June 13th!

View all Blog
Loading