EPR Legislation Passes in Colorado
Colorado is the third state in the U.S. to pass an EPR law, which, if signed into law by Governor Jared Polis, will put the honorous on producer’s of product packaging and paper products to join a Producer’s Responsibility Organization (PRO), thus fueling statewide recycling, among other elements, via dues. Image: Composition by Dan Meyers
The governor of Colorado has received a bill that establishes extended producer responsibility (EPR) for product packaging and printed paper. The introduction of EPR laws in Colorado represents a major development in the larger industry discussion about how recycling at the municipal level will be funded. This new legislative move, which passed in the Colorado House of Representatives via House Bill 22-1355 on May 2, saw a May 11, 2022 passing vote of 21-14 in the Colorado State Senate. Colorado’s governor, Jared Polis, has 30 days to sign or veto the bill.
The directive of HB22-1355 mandates that companies that sell “consumer-facing packaging and some printed paper join a producer responsibility organization (PRO).” There are exceptions to this proposed rule, including outs for small businesses as well as packaging that is highly-regulated, such as what is seen in medicines. Going forward, via dues collected, the PRO would then fund and manage a recycling system statewide. This process would begin with a needs assessment of all recycling services already being provided throughout the state, along with those (recycling) needs not presently being met. The needs assessment would be due by 2024.
First passing in the states of Oregon and Maine, Colorado has become the third state in the U.S. to pass an EPR bill and the first to do so in the 2022 legislative session. Paper recycling, in particular, has seen heated debate in the State of Colorado regarding its place in proposed EPR laws.
Both of the bills in Oregon and Maine were ultimately signed by their respective governors and the planning and execution processes are underway for getting things rolling in the coming years. While Colorado has been the first to take action in 2022, a number of other states are considering similar legislation, particularly in New York.
Details of Colorado’s EPR Legislation
Colorado’s new EPR legislation contains a House amendment that allows producers to submit what is termed, “an individual program plan.” Submission of such plan allows for individual producers to potentially avoid joining the PRO and subscribe to their proposal if accepted. The individual plan must still comply with the same set of requirements seen in the PRO and, further, offer a detailed description as to how the producer will “contribute to the costs of the department in overseeing the program.” The proposal must also detail how it will, “reimburse service providers that provide recycling services for the covered materials.”
In the senate, recent amendments state that the PRO may employ up to 5% of the dues it receives for administrative functions. However, the PRO:
Cannot use any funds for bonuses to employees
At least, every three years (beginning in 2028), the state will perform a review of “consumer-cost impacts resulting from the program”
States that a “private service provider is not required to provide recycling services under the program.”
Directly after the EPR bills passage in the Senate, the Colorado State House of Representatives agreed with the Senate’s changes and passed the amended legislation, setting it up for its route to the governor’s desk. It’s worth noting that both the Senate and the House in Colorado are Democrat-controlled, and that the bill passed in both chambers on a heavily partisan basis. Republicans were firmly opposed to the bill, the details of which can be view at LegiScan. Governor Polis is also a Democrat, so the bill is expected to soon be signed into law.
Another state has seen some EPR legislative action as of late as well. In the State of Hawaii, where an EPR bill passed both the House and Senate, the bill ultimately failed because both chambers could not resolve the differences in their versions before the legislative session ended. The scenario in Hawaii, which can be read about further on Waste Dive, is expected to be proposed again at a later date.
Read more about EPR laws and their importance in our recent blog article, “EPR: Governance and a Push for a More Circular Economy.”