Packaging EPR Law Enacted in Maryland

By Rachel Melissa and Maureen Bayer

This week Maryland’s Governor Wes Moore signed Senate Bill 901, an Extended Producer Responsibility (EPR) law designed to make “producers” of packaged items and paper products financially responsible for the upgrades to state recycling infrastructure needed to manage those disposable materials.

Maryland’s law focuses on the recycling and disposal of “covered materials,” which include packaging and paper products. Certain exemptions apply, including some business-to-business materials and packaging for medical equipment, infant formula, and hazardous materials. “Producers” of covered materials – manufacturers, brand owners, brand licensees, importers, and distributors – will be required to register with and pay annual fees to a nonprofit Producer Responsibility Organization (PRO) to sell, distribute, or import covered materials into the state. The fees, based on the type of covered material by weight, will be established by the PRO in a Producer Responsibility Plan (PRO Plan) to be submitted to the Maryland Department of the Environment (MDE) in July 2028. Violations of the law by either a producer or PRO will be subject to penalties up to $20,000.

Maryland is the sixth state to enact an EPR law focused on packaging and paper products. Oregon passed a similar EPR law in 2021, which will become fully implemented on July 1, 2025. Oregon’s law was followed closely by Colorado, California, Maine, and Minnesota. The Washington legislature passed an EPR law on April 25 that is awaiting signature by the governor.

Based on how packaging EPR laws have been rolled out in other states, producers will likely have the opportunity to comment on the draft PRO Plan and the PRO agreements that all producers will be required to sign. As such, producers wanting to have a seat at the table should closely track the implementation of the law and the PRO selection process.

While the various state EPR laws are similar in structure and content, they diverge in important ways, complicating producers’ compliance efforts and requiring a close analysis of both the “covered materials” and “producer” applications in each state. Obligated producers are strongly encouraged to engage legal counsel to untangle these nuanced distinctions and ensure that they are submitting accurate and timely reports to the PRO.

Maryland’s SB 901 was passed after a two-year effort by the MDE to assess statewide needs around a new EPR program. MDE’s Final Needs Assessment concluded broadly that a well-designed EPR program for packaging would aid in the state’s long-term climate action planning, and increase the state’s recycling rates, and recycling access in underserved communities.