A NOTE FROM OUR CEO: 
LEGISLATIVE SESSION OFF TO A FAST START

If January is any indication, the 2026 legislative session is off to the races. In just the first few weeks of the year, we’ve seen a surge of activity across states—new bills introduced, prior proposals carried over, rulemakings advancing, and early signals of where policy debates will focus in the months ahead. From batteries and packaging to paint, electronics, and right-to-repair, extended producer responsibility continues to be a central tool that lawmakers are using as they grapple with growing waste, recycling, and safety challenges.

At PSI, we’re tracking this activity closely and engaging in policy discussions where our experience can help inform smarter policy design and implementation. We are on the EPR pulse—often well before activity becomes public—due to deep relationships we developed with public, private, and nonprofit stakeholders over the past 25 years. Already in January, we’ve seen battery EPR proposals introduced in multiple states, packaging EPR bills and needs assessments resurface, significant rulemaking developments in California and Washington, and new data emerging that will shape how programs evolve. This kind of early momentum underscores both the opportunity—and the complexity—of turning policy ideas into effective, workable programs.

For members and partners looking for a deeper dive, our monthly legislative updates provide a detailed look at bill activity and analysis of legislative developments, rulemaking, and program developments across the country. As always, our goal is to help stakeholders stay informed, anticipate what’s coming next, and navigate an increasingly active and dynamic product stewardship landscape. We look forward to working with you throughout the session.

— Scott Cassel, CEO & Founder, Product Stewardship Institute

COURT DISMISSES ALL BUT TWO CLAIMS AGAINST OREGON PACKAGING EPR LAW

The federal district court of Oregon recently dismissed multiple claims against the Oregon Department of Environmental Quality (DEQ) in a lawsuit challenging the state’s Plastic Pollution and Recycling Modernization Act. The court issued a narrow injunction that temporarily pauses DEQ enforcement of the act against producers who are members of the National Association of Wholesaler-Distributors (NAW), the entity that filed the lawsuit. The act remains in effect, and producers who are NOT members of NAW are still obligated to comply with the requirements of the law. The two remaining claims in the lawsuit, which relate to the Dormant Commerce Clause and due process, will be decided in a trial starting July 13, 2026. 

The case and the court’s recent actions highlight the rapidly evolving legal landscape for EPR in the United States and the challenges that states may face in implementing these programs. Oregon’s Plastic Pollution and Recycling Modernization Act remains a significant step toward a more effective, more resilient, producer-funded materials management and recycling system. While legal questions will continue to shape how EPR takes form, the decision reinforces the importance of collaboration and steady progress toward more sustainable materials management nationwide. 

CALRECYCLE WITHDRAWS PROPOSED SB 54 REGULATIONS, SIGNALING IMPLEMENTATION RESET 

California’s Department of Resources Recycling and Recovery (CalRecycle) has withdrawn its proposed regulations to implement SB 54, the state’s landmark packaging extended producer responsibility (EPR) law, citing the need for further revisions. As reported by Resource Recycling, the decision follows extensive stakeholder feedback and concerns about the feasibility of certain provisions, including compliance timelines and requirements affecting food and agricultural packaging.

According to Waste Dive, CalRecycle plans to revise and reissue the rulemaking package at a later date, emphasizing that SB 54’s statutory requirements remain in effect despite the regulatory pause. For producers, local governments, and recyclers, the move highlights the complexity of implementing comprehensive packaging EPR policies at scale. Because California’s approach often influences policy development in other states, the next iteration of SB 54 regulations will be closely watched nationwide.

DRUG TAKEBACK SOLUTIONS FOUNDATION TO END CALIFORNIA DRUG AND SHARPS STEWARDSHIP PROGRAM BY JUNE 30

After six months of discussions with CalRecycle, the Drug Takeback Solutions Foundation, the producer responsibility organization (PRO) established by INMAR Intelligence, announced it will end its stewardship plan for covered drugs and home-generated sharps waste in California, effective June 30, 2026. Facing challenges meeting the law’s convenience standards as outlined in its approved plan, the Foundation sought approval for revised convenience standards, which were not approved owing, in part, to an insufficient geographic spread of authorized collection sites and limited supplemental mail-back services.

As a result, MedProject will become the sole PRO managing collection in California. In the state, if multiple PROs are granted approval, each PRO must meet convenience standards individually, raising the question as to whether competition with MedProject for collection site locations may have been a factor in the Foundation’s decision to terminate its program. This transition underscores the importance of evaluating how convenience standards can best ensure equitable and effective access to collection services statewide, and how EPR programs with multiple PROs can be best integrated. PSI, in collaboration with the New York State Center for Sustainable Materials Management, is conducting a study on the ways in which policy and program design affect convenience and accessibility. For more information or to contribute to this work, please contact Darla Arians, PSI’s director for policy and programs.

MEXICO ENACTS NEW EPR LAW, ILLUSTRATING REGIONAL MOMENTUM ON CIRCULAR ECONOMY REFORM 

Mexico has taken a major step toward advancing a circular economy, reflecting regional alignment around extended producer responsibility (EPR). On January 19, 2026, Mexico enacted a new legislative framework aimed at advancing the country’s transition toward a circular economy. The General Law on Circular Economy, along with amendments to the General Law of Ecological Balance and Environmental Protection and the General Law for the Prevention and Integral Management of Waste, establishes a national foundation for EPR and expanded recycling practices.

As reported by Hogan Lovells, the policy emphasizes sustainable product design and material use, including reduced reliance on virgin materials, higher recycled content in manufacturing, and a national registry to track producer compliance across sectors and product categories. Implementation guidance will be developed by the Ministry of Environment and Natural Resources, which is responsible for defining program requirements and oversight mechanisms. As Mexico begins implementation, the law marks an important signal for other Latin American countries pursuing circular economy and materials management reform.

WASHINGTON, NEW YORK, AND CALIFORNIA DELIBERATING TEXTILE EPR LAWS 

Recent policy activity in Washington, New York, and California indicates momentum for textile EPR across the U.S. As reported by Waste Dive, Washington’s HB 1420 and New York’s S3217A would require producers to join PROs responsible for textile collection, reuse, and recycling, as well as public education and outreach. New York’s proposal also establishes a textile stewardship advisory board to guide program implementation and industry coordination. 

Meanwhile, California is making progress on implementing its law. Three potential PROs—Landbell USA, the Textile Renewal Alliance, and the Circular Textile Alliance—recently submitted proposals to lead the state’s textile EPR program. CalRecycle expects to select one of these entities as the PRO by March 1, marking another step toward developing an enhanced textile recovery and recycling infrastructure by 2030. Stakeholders nationwide are watching these developments as states propose and consider textile waste policy options. 

EVENTS

Circular Action Alliance (CAA) is holding a webinar, February 19 at 1:00 pm Eastern Time, on CAA’s implementation of SB54 in light of the altered regulatory timeframe. They will cover the following:  

• Current status of key program elements. 
• CAA's role and responsibilities in the implementation process. 
• Next steps for producers and expected timelines while final regulations and the needs assessment are still pending. 

Register here

PSI IN THE NEWS

• How To Get Rid of an Old Mattress the Right Way | yahoo!health, February 2026

WHAT WE'RE READING

(StudioThreeDots / Canva Teams)

• EPA awards $58 million to strengthen recycling infrastructure: The U.S. Environmental Protection Agency announced $58 million in new grants to support recycling and waste management infrastructure nationwide. Funding will go toward collection improvements, processing capacity, and market development, with an emphasis on underserved communities and data-driven planning to improve system performance. Read more
• Congress preserves EPA funding in final budget deal: An Inside Climate News analysis reports that Congress rejected proposed deep cuts to the EPA in its final budget legislation. While funding levels still reflect ongoing political debate, the outcome maintains federal support for recycling, waste reduction, and environmental programs at a time when states are expanding EPR and other stewardship policies. Read more
• Rhode Island grapples with plastic pollution as bottle bill stalls: A Rhode Island Current report examines the growing presence of small plastic debris along the state’s beaches and the ongoing debate over a beverage container deposit law. The article highlights how Rhode Island remains without a bottle bill despite rising concerns about marine litter and missed opportunities for higher container recovery rates. (PSI’s Scott Cassel provided expert testimony at a 2025 legislative hearing in Rhode Island about ways to integrate a bottle bill and EPR concepts into a joint program through a collaborative stakeholder process.) Read more
• New report reflects on early lessons from U.S. EPR laws: Waste360 reviews a new analysis of the first wave of extended producer responsibility programs in the U.S., drawing lessons from early adopters across product categories. The report emphasizes the importance of clear policy goals, realistic implementation timelines, strong stakeholder engagement, and adaptive program design as more states consider EPR legislation. Read more
• Call2Recycle rebrands as The Battery network: Call2Recycle announced a rebrand to The Battery Network, signalling a broader focus on battery stewardship as EPR laws expand and concerns grow around lithium-ion battery-related fires at recycling and waste facilities, The organization said the new name reflects an emphasis on safer collection, clearer consumer guidance, and coordination across producers, retailers, and recyclers as battery use accelerates nationwide. Read more
• Canadian appeal court upholds single-use plastics ban: Canada’s Federal Court of Appeal has upheld the federal government’s decision to classify “plastic manufactured items” as a toxic substance under the Canadian Environmental Protection Act, maintaining the country’s single-use plastics ban. The decision reinforces existing restrictions on products such as plastic bags, straws, and cutlery, marking a key rep in the ongoing debate over federal plastics regulation. Read more

The Product Stewardship Institute is a policy expert and consulting nonprofit that pioneered product stewardship in the United States. Since 2000, PSI has helped enact 146 extended producer responsibility (EPR) laws across 21 product categories in 34 states and D.C. — the bedrock on which the circular economy is built. We work with businesses, nonprofits, academia, and governments to ensure that products are responsibly managed from design to end of life. Join us at www.productstewardship.us. 

The Product Stewardship Institute, Inc. is an equal opportunity employer and provider. Persons with disabilities who require alternatively formatted materials to ensure effective communication should contact Amanda Nicholson at info@productstewardship.us or 617.236.4855.