Policies to Support the Reuse Service Sector

A list of policy priorities, agreed upon by reuse service providers, that can increase opportunities for reuse service businesses in the consumer packaged goods and food service sectors.

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Recommendations for local, state and provincial policymakers

As the reuse movement continues to expand across the U.S. and Canada, advocates and policymakers have enacted many policies aimed at mandating and/or incentivizing the use of reusable foodware and packaging. While all of these policies can help normalize reuse and generate momentum for a transition to reuse systems, only some can catalyze scaled interoperable infrastructure by directly supporting reuse service providers (RSPs). RSPs deliver the services and infrastructure necessary to sort, wash, sanitize, and redistribute returnable packaging. They may also provide the on-site technology and machinery that enables refill systems. 

RSPs have been enabling reusable packaging in business to business (B2B) transactions for many decades. While B2B opportunities continue to expand, RSPs focusing on consumer-facing packaging and foodware have emerged more recently to offer essential expertise and utility to restaurants, venues, institutions, and corporations as they transition from single-use to reuse. Without them, this transformation is fragmented, and progress toward achieving a circular economy at scale is limited.

RSPs are building a new and rapidly expanding sector of the economy. As with any new market, RSPs require a supportive and intentionally crafted policy environment to grow and thrive. Policymakers and advocates must understand the challenges RSPs face, and in turn deploy policy levers that will help this industry — and its impact — expand. In so doing, policymakers strengthen a critical pathway for accelerating the transition from single-use to reuse — delivering significant environmental, economic, and social benefits.  

  • Throughout 2025, Upstream facilitated a multi-stakeholder dialogue series centered around RSPs. With input from partner non-profit organizations and government agency staff with experience in reuse policy development, RSPs worked together to identify and coalesce around a set of policies that best support the growth of their sector.

    After completion of the series, RSPs agreed on a list of policy priorities they felt could increase opportunities for reuse service businesses in the consumer packaged goods and food service sectors (see below). While RSPs are not the only stakeholders in the reuse movement that need to be engaged and supported, they are key players in building widespread, quality reuse infrastructure and systems. Some reuse and source reduction policies, such as reuse for onsite dining, do not necessarily result in more customers or increased revenue for RSPs. While these policies are still important for normalizing reuse and reducing waste and pollution, they are beyond the scope of this list. By identifying policies that directly help RSPs expand their customer base and scale their operations, we hope to help U.S. and Canadian governments support this crucial emerging industry. 

  • As participants discussed the policy priorities below, several best practices emerged. Namely, thoughtful collaboration and development is essential to deliver equitable outcomes, protect public health, and effectively scale reuse systems. This requires meaningful stakeholder participation in the policymaking process; embedding health protections, worker safety, and other critical social outcomes into legislation; ensuring access to reusable packaging and foodware for all; leveraging public-private partnerships to optimize implementation; and allocating funding for enforcement and technical assistance. 

    In order to pass reuse policies that are fair, inclusive, and accessible, policymakers should conduct robust stakeholder engagement from the start. The inclusion of stakeholders from underserved and underrepresented communities, as well as the inclusion of RSPs themselves, is essential to the policy development process. One important facet in a just transition to reuse is incorporating provisions that protect human health and eliminate toxic substances from foodware and packaging, including reusables. Safeguarding public health, especially in the communities that are already disproportionately exposed to pollutants, is a core principle of environmental justice and should be applied as a lens to all policies.

    RSPs also emphasized the importance of leveraging public/private partnerships to scale reuse systems and support the effective rollout of new programs. Public/private partnerships between RSPs and governments can help expand awareness and increase demand for reuse services throughout a given jurisdiction; facilitate the launch of new programs with added capacity for technical assistance; ease barriers to entry and logistical burdens for RSPs through direct access to government staff and streamlined permitting; and more. 

    Robust enforcement of reuse requirements also supports RSPs, especially those who are expanding in a new area. Future enforcement requires attention during the policymaking process — it can be especially critical to secure dedicated funding for oversight and enforcement from the start. In some cases, funding for technical assistance can be helpful as well, but it is best to seek input from RSPs in a given jurisdiction to confirm whether this will be needed. 

    Policies can also encourage data transparency and digital tracking systems that verify return rates, material reuse cycles, and environmental impact outcomes. Performance-based metrics can accelerate innovation and help prevent greenwashing. When tracking systems are digitally integrated into reuse infrastructure, they can enhance accountability without adding reporting burden or costs.

    PR3 is currently developing a digital standard for reuse to improve traceability, efficiency, and supply chain visibility while reducing friction and complexity across reuse systems. PR3’s full suite of reuse standards, covering washing, collection points, containers, labeling, system operations and performance in addition to digital tracking, can help guide policy to ensure alignment and standardization across the reuse sector.

Priority Policies to Support Reuse Service Providers

Important notes about the list

This list provides a menu of options for policymakers and advocates who wish to directly support the growth of the reuse service sector. The policies are not listed in a ranked order, but rather are thematically grouped. 

Not all of these policies will be feasible to pass in all jurisdictions. Contextual differences between the U.S. and Canada make some of the listed policies relevant in only one country, as noted throughout. Some policies are best suited for municipal governments, while others are intended for the state or provincial level — the best fit for each item is noted in parentheses throughout the list. 

Some of these policies overlap. In other words, some could be enacted together, and some could accomplish the same thing via different mechanisms. Dialogue participants felt that presenting a variety of policy mechanisms was preferable so that policymakers across local, state, and provincial governments can choose what best suits their own context.

Specific provisions for each policy are not included. As with all types of policy, details are critical. However, the list below offers only a high-level overview of the types of policies that are most helpful for RSPs. Some placeholders are included where participants agreed that more details were needed but were not able to come to agreement within the limited timeframe of the dialogue. In some cases, participants wanted to add detail where they felt it was crucial — these notes are included in italics throughout.

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  1. Extended producer responsibility (EPR) with reuse funding, requirements and/or incentives — State/province level.*

  2. Deposit return systems (DRS) with reuse funding, requirements and/or incentives — State/province level.*

  3. Required reuse at [public or private] events or venues that host regular/frequent gatherings for large crowds —Mostly at the local level, but state/province where it makes sense and is feasible.
    Participants agreed that this policy should ideally include clear thresholds for event/venue size and frequency of events (i.e., more than X times per year; more than X people at a time).

  4. *For the US* Required reuse in schools — State level. Participants noted that reuse in schools could be governed along with other food-licensed facilities, but this varies across jurisdictions. Additionally, participants noted that as schools may wash reusables in-house, this policy may not always result in support for RSPs — that outcome would only be achieved in school districts that prefer to outsource reuse labor. 

  5. Taxing or mandating a fee on single-use items —State/province or local level for fees; some local governments in Canada cannot levy these taxes.
    Participants emphasized that this type of policy should be designed to avoid deterring small businesses from adopting reusables, and a lens of equity must be applied, particularly by offering key exemptions. Furthermore, if a tax or fee is levied on single-use foodware for takeout and delivery, it should be paired with a requirement for a minimum percentage of orders to be served in reusables. 

  6. Tax credits with streamlined reporting for large RSP customers — State/province or local level as applicable. Customers may include all types of consumer brands, businesses, institutions, schools/campuses, venues, and more. There are many mechanisms through which tax credits might be applied, but participants highlighted waste diversion through reuse as a promising avenue. 

  7. Ensure tax codes provide parity between single-use packaging and foodware and reusables — Usually state/province level, but could be local depending on the jurisdiction.
    Review, and, as needed, update tax codes. Some tax codes currently exempt single-use items while taxing reusable alternatives. Participants noted that tax codes (depending on location) should be restructured so that reusables are tax-exempt or, at the very least, so that single-use items are taxed at the same rate as reusables. The ultimate goal is to disincentivize businesses from choosing single-use packaging and products, but at a minimum, perverse disincentives for reusables should be eliminated. 

  8. Grant programs, bonds, and other government funding for reuse — State/province or local level.
    Participants acknowledged that some degree of government subsidization or support can be critical for RSPs in their startup phase. Financial support can take many forms and may depend on each jurisdiction’s norms, but most examples to date have been grants (see Upstream’s Best Practices for Government Reuse Grant Programs guide for more information). Upstream notes that bonds may be an increasingly relevant and important mechanism to support the buildout of new infrastructure. Participants also noted that regardless of the funding mechanism, recipient eligibility should extend beyond waste reduction in food service to include climate mitigation, water resilience, and workplace safety systems enabled by reuse. 

*EPR and DRS are large, complex policies, and there are many specific provisions that can pertain to reuse. We did not have time within the confines of this dialogue to discuss and agree upon these, but Upstream has published many resources going into more detail on how to best incorporate reuse, including our Principles for Reuse in EPR & DRS.