EPR Fees Overview 

The foundation of Extended Producer Responsibility (EPR) programs are the fees (or dues depending on the state) producers pay to the compliance organization to manage the program and meet the producers’ obligations under the law. The costs associated with an EPR program are determined by several factors and vary from state to state, but primarily include: 

• Providing recycling services and necessary infrastructure; 
• Implementing required public education and outreach programs; 
• Meeting reporting, auditing, and verification requirements; 
• Conducting needs assessments and program plan development; 
• State administration, implementation, and enforcement costs; 
• Administrative costs associated with running the program; and 
• Other state mandated fees. 

Once the initial budget for the program is determined, the compliance organization must then consider the total amount of covered materials being sold into that state and calculate the operational budget required to recycle all materials. Collection and processing costs make up a vast majority of the total budget. 

State EPR laws provide strict guidelines on how producer fees can be used and require specific publicly available reporting requirements and audits for the compliance organization. 

LPMA’s Initial Fee Structure 

Using currently available data, the preliminary schedule of fees set by LPMA was designed to be simple and fair for all producers, with the goal of further calibration once more data becomes available.  

Planning fees were set to fund program start-up costs, including development of EPR plans, engagement with state EPR leads, engagement with stakeholders, preparation of operational plan, IT, communications, legal and administration. 

Implementation fees were established to begin closer to the program start day that would include costs incurred to recycle the materials, modifications to the program plan, education and outreach, infrastructure, and other related items. 

Each year, these fees will be recalibrated with input from participating members to reflect any changes to program costs as well as eco-modulation factors. 

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Fee Setting Working Group 

LPMA is forming a Producer Working Group focused on developing LPMA’s Fee Setting Policy and eco-modulation factors. The Working Group is open to all participating producers and will meet monthly with each meeting dedicated to a specific topic: 

SESSION 1: Introduction to Fee Setting & Eco-Modulation 
Wednesday, October 15, 1 pm ET  

SESSION 2: Fee Setting Principles, Policy, and Proposed Methodology for Eco-Modulation 
Wednesday, November 19, 1 pm ET  

SESSION 3: Open Forum: Feedback & Recommendations 
Wednesday, December 3, 1 pm ET 

We strongly encourage Working Group members to attend each meeting. Meetings will not be recorded, but presentations decks will be made available. 

Any employee from a participating producer is eligible to register using their business email. A Zoom link will be emailed to the group prior to the first meeting. 

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Eco-Modulation 

Eco-modulation is a concept within EPR that provides incentives through a reduction in fees for producers to improve the recyclability, reuse, and/or compostability of packaging. There are also maluses. or disincentives, applied to packaging that is hard to recycle or compost. Eco-modulation was a key driver behind the formation of LPMA, to ensure producers of petroleum and automotive products would not have to face excessive fees for not having their materials recycled through a curbside program. 

Colorado Eco-Modulation

Colorado will be the first state to implement eco-modulation. By January 1, 2026, and each year thereafter, the Colorado Department of Public Health and Environment (CDPHE), in consultation with LPMA and the Colorado Producer Responsibility Advisory Board, will develop an eco-modulation bonus schedule.   

In addition, LPMA, as required by law, will develop a separate eco-modulation schedule including both bonuses and penalties that will go into effect in 2028. The eco-modulated dues are estimated to range by +/- 25% from the cost-base dues and will be adjusted to meet the product performance target.  

The following incentives will be determining factors in lower dues:  

• High levels of post-consumer recycled material use.  
• Reduction in the amount of packaging materials used for products.  
• Innovations and practices to enhance the recyclability or commodity value of covered materials.  
• Design for the reuse and refill of covered materials.  
• High recycling and refill rates of covered materials.  

The following incentives will be determining factors in increased dues:  

• Designs and practices that increase the costs of recycling, reusing, or composting covered materials.  
• Designs and practices that disrupt the recycling of other materials.