EPR Foundations: What is a Deposit Refund System?

Discover how Deposit Refund Systems increase recycling, reduce waste, and incentivize responsible behavior through consumer deposits.

rePurpose Global solving plastic pollution crisis
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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