August 2025
“There are provisions targeting plastic shedding from friction,” says Owens. “Reusable plastic pallet providers need to understand their product’s performance and be ready to answer customer questions about micro-particle release. That may even influence what materials are acceptable in certain applications.”
Owens points out that major players in the plastic pallet sector likely already have lifecycle data and environmental impact assessments. “They’ll be better positioned to navigate these rules than smaller operators who don’t have that level of insight.”
Competitive Advantage and Proactive Compliance
Despite the challenges, Owens believes EPR could be a strategic opportunity for smart pallet companies.
“Look, this is a lot to take in. But the reality is that most of your competitors aren’t ready either,” he says. “If you get fluent in the language of EPR—reuse rates, eco- modulation, net recycling—you can build trust with your customers and create switching costs. That’s how you lead in a market like this.”
Owens says companies that embrace data, tracking, and EPR reporting requirements may not only reduce compliance risk, but also win business from brands that are under pressure to meet sustainability targets.
He adds that reusable transport packaging, including wood and plastic pallets, offers another advantage: simplicity. “The recordkeeping burden for recycling is heavy. If you shift to reuse models, you cut down on bureaucracy while hitting sustainability goals.”
What Comes Next?
Final rules and fee schedules in California and Colorado are still in development. “It’ll be another six months before we get clarity,” Owens says. “But don’t wait until it’s all finalized. Start building your systems now.”
He recommends that pallet users take the following steps:
Audit your pallet programs to determine which products are truly reusable.
Work with recyclers to document outcomes and recovery rates.
Educate your team on EPR language and responsibilities.
Prepare to report packaging data accurately and on time.
“This isn’t just a regulatory issue,” Owens concludes. “It’s a business risk and a business opportunity. The companies that get this right will gain a competitive edge—not just in compliance, but in how customers perceive their value.”
WPM