EPR Foundations: What is a Deposit Refund System?

A Deposit Refund System (DRS) encourages recycling by requiring consumers to pay a deposit on packaging, which is refunded when the item is returned. This model reduces waste, improves recycling rates, and supports a circular economy by incentivizing responsible disposal.

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Written by
rePurpose Team
Published on
February 25, 2025

EPR represents a shift from traditional waste management practices. Instead of relying solely on municipalities to handle waste, producers are incentivized to take a proactive role in minimizing waste and promoting recycling. 

Implementing EPR can involve several strategies, such as:

  • Redesigning packaging to be more recyclable or compostable
  • Using materials that have a lower environmental impact
  • Participating in or funding recycling programs
  • Educating consumers about proper disposal methods

Deposit Refund System Decoded in Simple Terms

The Deposit Refund System (DRS) is a key component of Extended Producer Responsibility (EPR) for packaging in the United States. It operates on a simple yet effective principle: consumers pay a small deposit when purchasing a product, which is refunded when they return the packaging for recycling. This system incentivizes consumers to return used packaging, thereby increasing recycling rates and reducing litter.

Implementing a DRS involves several steps:

  • Setting up collection points for consumers to return used packaging
  • Managing the logistics of collecting and recycling the returned materials
  • Educating consumers about the benefits and process of the DRS
  • Collaborating with local governments and recycling facilities to streamline operations

Case Study: How Deposit Refund System works in Oregon's EPR Framework

In Oregon, the Deposit Refund System (DRS) exempts beverage containers from Extended Producer Responsibility (EPR) obligations. Consumers pay a deposit on beverage containers, which is refunded upon return, promoting recycling and reducing waste. This system aligns with EPR goals by incentivizing responsible disposal and recycling practices.

Getting Started: EPR Compliance Resources for SMEs

The EPR compliance hub from rePurpose Global can automate in 1-click what would otherwise take you over 3 months of manual effort. It quickly compiles CAA reports, estimates fees and tax liabilities, and keeps you updated on emerging regulations, including Labeling laws, PCR mandates, and 90+ Packaging Regulations in North America. With Oregon's reporting deadline on March 31st, immediate action is crucial to avoid financial penalties. Reach out to us for a stress-free, reliable solution.

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