The small producer exemption, state by state

Every state exempts small producers. No two states define small the same way, and in California you have to apply for it.

Last reviewed 27 July 2026 · Packfile is not a law firm and this is not legal advice

Every enacted US packaging EPR programme carries a de minimis exemption, and every one of them draws the line differently. If you take one thing from this page, take this: an exemption in one state has no bearing on any other, and in California it is something you apply for rather than something you simply qualify for.

StateRevenue testTonnage testExempt if underFees
Oregon
SB 582 (Recycling Modernization Act)
$5,000,000
global revenue
1 tonne into the stateeither testcharging now
Colorado
HB 22-1355
$500,000
global revenue
1 tonne into the stateeither testcharging now
California
SB 54 (Plastic Pollution Prevention and Packaging Producer Responsibility Act)
$1,000,000
in-state gross sales
either testJan 2027
Washington
E2SSB 5284 (Recycling Reform Act)
$5,000,000
global revenue
either testJul 2029
Maryland
SB 901
$2,000,000
global revenue
1 tonne into the stateeither testJan 2028
Minnesota
HF 3911 (Packaging Waste and Cost Reduction Act)
$2,000,000
global revenue
1 tonne into the stateeither testFeb 2029
Maine
LD 1541 / LD 1423
$2,000,000
global revenue
1 tonne into the stateeither testDec 2026

How to read the table

Revenue test. Most states measure your global revenue. California measures gross annual sales, at a threshold five times lower than Oregon’s and Washington’s.

Tonnage test. One metric tonne of covered material supplied into that state in the previous year. Covered material means packaging, and in several states also paper and foodservice ware. A tonne is less than it sounds: a brand shipping 80,000 corrugated shippers a year is already past it on that component alone.

Either or both. All seven states exempt you if you fall under either test. Minnesota’s de minimis provision is sometimes summarised as requiring both — it does not; the statute at Minn. Stat. § 115A.1441 subd. 13 applies the exemption on either criterion, as Fredrikson & Byron sets out. We had this wrong ourselves until we checked it against the statute rather than a summary table.

California: the exemption you have to ask for

CalRecycle’s guidance is explicit. A producer that believes it is under the $1M line must first register in the Packaging EPR Producer Reporting System (PEPRS), and then submit a small producer exemption application. There is no passive route.

And the exemption is narrower than it looks. CalRecycle notes that exemption from reporting and fees does not release a small producer from the substantive obligation underneath SB 54 — all covered packaging still has to be recyclable or compostable by 2032. An exemption today is relief from paperwork, not from the packaging redesign the statute is driving at.

Colorado has a middle tier

Colorado exempts producers under $500,000 in revenue outright, and creates a separate low-volume producer track for those under roughly $5.5M. That is a materially lighter obligation than full producer status, and it is easy to miss because it sits between the two states everyone reads about first.

Three things an exemption does not do

Run the tests against your own numbers. The free exposure check applies all seven, including the tonnage estimate, and flags anything sitting within 25% of a line as too close to call rather than pretending a screening estimate can settle it.

Run the free check

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