The growth of compostable packaging presents important considerations for Extended Producer Responsibility (EPR) policy. As more states undertake needs assessments, including emerging materials, like compostable packaging, can ensure sound financial and environmental outcomes. This policy brief explains the importance of conducting needs assessments for EPR that account for composting infrastructure and compostable packaging. Needs assessments are critical to establishing recovery goals in a state’s EPR plan. For EPR funds to be used effectively, it is important for state needs assessments to capture data about all viable materials. To date, four U.S. states—California, Colorado, Maine and Oregon—have adopted EPR laws for packaging, and several others have established study bills to evaluate EPR. The brief is a resource for states that are about to begin an EPR needs assessment or are considering EPR for packaging, and includes 3 calls to action for policymakers, regulators and Producer Responsibility Organizations (PROs) to ensure needs assessments are comprehensive and effective.