Working Paper 2 is the second of three working papers that comprise a cost -benefit study on extended producer responsibility (EPR) for consumer packaging and printed paper (PPP) in Minnesota. This study models one possible design of an EPR system for PPP (as envisioned by Recycling Reinvented) in a single state (Minnesota) using state-specific data to model the potential impacts of a stat e-based EPR system. The first working paper outlined the assumptions for the scope of an EPR system in the state. This second working paper examines the costs and outcomes of the current recycling system; models a system that expands access to recycling and implements collection best practices for residential recycling; institutes a coordinated statewide program for away-from-home recycling; improves the efficiency of processing;and estimates the costs of the modeled EPR system. The third working paper will estimate how the costs of a future system could be allocated to producers under a hypothetical EPR financing system. It will also examine existing and future markets for consume PPP collected in Minnesota. The key findings and projections of Working Paper 2 are summarized below. The methodology and data sources used for this study are described in detail in the appendices.