The complexity of Extended Producer Responsibility (EPR) regulations demands attention from businesses across industries — but particularly for beverage alcohol producers, importers, and other sellers. In a July 2026 webinar hosted by Sovos ShipCompliant, guest speaker Andrea Nappi Conforme, President, National Association of Beverage Importers (NABI), delved into the nuances of EPR requirements to help companies navigate this emerging regulatory framework.
With the rise of ecommerce, states have had to deal with increasing amounts of packaging and other waste materials, overburdening their existing waste management systems. The intent of EPR laws is to address this strain by increasing state funding for waste management through new fees imposed on sales made by producers in select states.
However, the newness and complexity of EPR have left many businesses scrambling to comply. Here’s an overview of the essentials beverage alcohol companies should know.
What Is EPR, and Why Should You Care?
At its core, EPR regulations aim to relieve municipalities from some of the financial burden they face dealing with packaging and other waste materials—cardboard boxes, inserts, bottle caps, and more—by levying added revenue from producers. As Andrea described the impetus behind these laws:
“With the increase in ecommerce…states have been inundated with cardboard and other packing materials… EPR statutes are developed so they can share the costs with those responsible for shipping.”
Watch the quick excerpt here.
Which States Have Enacted EPR Rules?
As of July 2026, seven states have passed EPR legislation: California, Colorado, Maine, Maryland, Minnesota, Oregon, and Washington. Businesses operating in these states, whether as a local manufacturer or as a remote seller or supplier, will need to assess their responsibilities immediately.
Andrea noted a political bent among the states that have adopted EPR rules, suggesting that producers operating in other blue states should pay close attention to future legislation.
How is a Producer Defined? Who is Exempt?
Of course, one of the first questions a business needs to ask about EPR is, “Am I responsible? Am I a ‘producer’?”
Critically, though, each state has its own definition of “producers,” separate from how their beverage alcohol-related statutes define the term. This means that whether a business is responsible for a given EPR law cannot be assumed and must be assessed in each state individually.
Under the different state definitions, producers could be manufacturers, brand owners, first sellers in the state, or importers. Most states also include exemptions based on revenue or tonnage thresholds, but as Andrea explained, “There isn’t one magic number, because each state has set this threshold at a different level.”
There are further exemptions for business-to-business sales, but they are also not always intuitive:
Watch the quick excerpt here.
“You think, okay. Well, great. I only ship to distributors. I’m shipping to a business. Therefore, I’m exempt. Right? That’s not necessarily true.”
Understanding these state-by-state distinctions is essential for compliance.
How Do EPR Programs Work?
Once a state has enacted EPR legislation, state agencies step in to flesh out the details through rulemaking, including determining how subject producers will register with the state and pay their fees. To handle this, states designate a third-party organization to manage the registrations and fees, known either as a Producer Responsibility Organization (PRO) or a Stewardship Organization (SO).
In effect, almost every state with EPR has settled on Circular Action Alliance (CAA), a non-profit organization setup by major packaging waste producers, as their PRO/SO. As Andrea noted:
“Circular Action Alliance is the one…to whom you will be reporting. They manage program registration forms, but producer fees depend on the amount of packaging material shipped into a state.”
Watch the quick excerpt here.
Navigating Reporting Challenges
Reporting requirements for EPR programs are stringent—often pushing companies to provide granular breakdowns of packaging materials. Andrea elaborated:
“Even the adhesive on the label, if it is made of certain materials, would be included…. It’s going to be a headache, certainly, and requires research.”
For compliance success, Andrea recommended:
- Categorizing packaging materials for detailed analysis based on state definitions of covered materials.
- Tracking post-consumer recycled content—companies earn lower fees by using recycled materials.
- Running annual analyses to verify exemption thresholds (e.g., tonnage or revenue changes).
Penalties: Why Compliance Is Crucial
Noncompliance is not a risk businesses can afford to overlook. Andrea warned about steep penalties:
“Oregon fines can reach $25,000 per day, Colorado $10,000 per day, California $50,000 per day…. States also have the ability to halt sales.”
While enforcement hasn’t yet begun in earnest, businesses should take proactive steps to avoid future issues.
Watch the quick excerpt here.
Evolving Regulatory Landscape
The conversation also touched on pending legislation in states like Connecticut, Hawaii, Illinois, Massachusetts, and Rhode Island. Andrea noted these regulations were rapidly evolving, meaning businesses need to remain vigilant:
“There’s just a lot happening…companies are trying to get their heads around this.”
Ongoing litigation in Oregon, California, and Colorado may also impact enforcement in the years ahead.
What Steps Should EPR-Defined Producers Take Next?
Andrea emphasized the importance of preparation and action for those selling into the seven EPR states: clear understanding of state-by-state laws, maintaining updated records, and keeping tabs on evolving regulations. “Start with grouping your brands and creating a spreadsheet for clearer analysis…[though] it won’t be a simple process.”
To help members of the beverage alcohol industry, NABI offers (for sale) a plain-English guide that breaks down state EPR obligations and other resources are discussed in the webinar recording.
Conclusion: A Massive Shift with Many Implications
Extended Producer Responsibility marks a seismic shift in the way recycling and packaging waste are managed. Businesses operating in EPR-affected states must act fast to assess their obligations, register with organizations like CAA, and prepare for reporting deadlines. As Andrea put it, compliance may be arduous, but it’s not optional: “It is something that should be top of mind.”