There is an excellent article posted today on the Plastics Today website pointing out two important facts, EPS packaging is recyclable and EPS packaging is a small component in our landfills and solid waste stream.
One fact that is restricting EPS recycling efforts is that many municipalities and recycling centers do not accept Styrofoam / EPS packaging. This may be because foam compacting equipment is needed to convert the light, bulky material into a densified form for economical shipping. Densified EPS material is in demand by recycling companies so the revenue from material sales can usually offset the cost of the foam compactor.
Please contact your local recycling company and ask if EPS foam or Styrofoam is accepted. If not, encourage them to look into the benefits of recycling EPS.
The 2010 AFPR recycling rate report referenced in the Plastics Today article can be found here.