High Costs of New York State’s Proposed EPR Bill Magnified After California Rejects Similar Legislation Due to Expensive Impact on Business & Consumers
New York’s Proposed EPR Legislation S.1464/A.1749 is a $1.3 Billion Direct Impact on Business & Households
ALBANY – On the heels of a significant announcement in California that Governor Gavin Newsom has paused the regulatory implementation and requested a do over of proposed Expanded Producer Responsibility (EPR) rules based on its unaffordable impact on businesses and consumers, a recently updated study on legislation in New York State that would be even more consequential shows potential annual direct cost increases for consumer households between $166 and $197 if approved in 2025.
Expanded Producer Responsibility (EPR) laws mandate that companies that make, use, and sell packaging and other products collect and process post-consumer waste so it can be reused instead of disposed of.
Canadian-based York University recently updated its 2021 study on the impact of EPR. It concluded the bill, S.1464/A.1749, would result in $1.3 billion in direct costs for industry - up from $800 million in the 2021 cost study - with the potential of an additional $3 billion impact on the New York State economy. The study projects that the majority of direct industry costs will be passed on to consumers in higher product prices. Those increases are expected to disproportionately impact low-income households (less than $40,000) due to their proportionally higher spending on essentials like food and beverages and their purchase of prepackaged products.
The report, which makes no specific recommendation in support of or opposition to
The New York bill states, "While advocates of EPR say that producers should be paying these costs irrespective of what they might be, the reality is that these costs are mostly absorbed by the consumer, in the form of increases in the cost of consumer packaged goods,” the report said. "This study seeks to understand better the relationship between producer responsibility fees and the net impact on the economy of New York State . . . and the corresponding economic impact for consumers."
The California legislation that Governor Newsom signed into law in 2022 is less restrictive than what’s proposed by S.1464/A.1749. Still, Newsom rejected the rules of the EPR program, citing a state agency report that said the regulations would cost consumers $330 annually, Bloomberg News reported on March 7.
"We wanted an updated EPR cost study to illustrate our long-standing concern about the impact on our member companies and on New York consumers, and we hope that it will help New York lawmakers avoid following California’s bad example when we could enact more practical legislation that reduces waste and is affordable” said Ken Pokalsky, Vice President of The Business Council of New York State, Inc. "We continue to oppose expensive, unworkable mandates and restrictions on business, and we believe these costs would be exacerbated by passage of bad legislation,” Pokalsky said, citing S.1464/A.1749. Pokalsky added that recently proposed legislation, S.5062/A.6191 – the Affordable Waste Reduction Act -- which is modeled on legislation adopted by Minnesota in 2024, presents a far more workable and affordable approach that makes investments in our recycling infrastructure and grows New York’s economy.
York Impact Study Highlights
The report, "Modeling Impact on Consumer Packaged Goods Pricing Resulting from the Adoption of Extended Producer Responsibility in New York State," was updated by Dr. Calvin Lakhan, co-investigator of the Waste Wiki project at York University, a research effort focused on Canada's waste management practices and policy. Dr. Lakhan has previously concluded extensive research on EPR programs already in place in Canadian provinces. The Public Policy Institute, The Business Council’s 501(c)6 research affiliate, supported the project.
- “The estimated total price impact on a 'basket of goods' (packaged goods) has increased [from the 2021 study]. The new range is a 4.25% to 6.75% cost increase. This translates to a $38 to $61 monthly increase in additional grocery costs for the average family of four in New York State.”
- Using a conservative money multiplier assumption of 3x, the total economic impact of EPR implementation is projected to exceed $4 billion annually, impacting household budgets by approximately $2,905 over five years when measured on a per-household basis.
- Cost increases have the potential to disproportionately affect low- and middle-income households, many based in rural communities with limited consumer choice, which dedicate a larger share of their income to everyday necessities with less financial flexibility to absorb price increases.
The Business Council has been very active on EPR issues and – along with more than 100 other organizations – has strongly opposed the adoption of S.1464/A.1749. The updated study is available, with background data available here