EPR Deep Dive: Colorado
Background
Colorado’s Producer Responsibility Program for Statewide Recycling Act, House Bill 22-1355, aims to tackle the growing waste crisis by shifting the financial and operational responsibility of recycling from consumers and municipalities to producers of covered materials. This legislation requires producers to finance and provide recycling services for these materials statewide.
Who is Affected
The law applies to a broad range of businesses defined as “producers” in the act, including manufacturers, importers, and retailers who sell or distribute products using covered materials within Colorado.
The key industries affected are those that use packaging materials:
food and beverage packaging
general consumer product packaging
paper products
e-commerce packaging
The following are some entities considered to be producers under House Bill 22-1355:
The manufacturer of a product sold or distributed in the state using packaging materials under the manufacturer’s own brand.
The licensee of a brand or trademark if another entity manufactures the product.
The importer of a product using packaging materials when the manufacturer or brand owner is located outside the United States.
The publisher of paper products like magazines, phone books, etc.
While there are exemptions for small businesses with less than $5.5 million in annual revenue and certain nonprofit organizations, most producers that operate within the state or distribute products into Colorado will be required to comply with the new regulations.
Key Components: Complex and Evolving Regulations
The Colorado EPR act introduces significant changes to how recycling is managed and funded in the state. These changes fall under two key areas that impact businesses:
Producer Responsibility Organizations (PROs): Companies impacted by the act must join a PRO. PROs will collect fees from companies to fund the end of certain material’s lives, which includes processing, recycling, and data collection.
Circular Action Alliance (CAA) is the PRO that will administer Colorado’s EPR law for packaging and paper products.
Record-keeping and reporting: The rules also mandate detailed record-keeping, audits, and participation in educational outreach efforts.
These components are complex and will evolve over time, making it even more challenging for businesses to stay compliant.
Pertinent Deadlines
July 1, 2025: Producers are prohibited from selling or distributing products that use covered materials in Colorado unless they are participating in the program or have an approved individual plan.
January 1, 2026: Producers must start paying annual producer responsibility dues based on their packaging and paper product output.
March 31, 2026, and annually thereafter: Producers and PROs must submit reports on recycling rates, material handling, and compliance.
The Impact on Brands
The Colorado Producer Responsibility Program will affect packaging, product design, and supply chain management. Companies will need to adjust their packaging strategies to meet recycling requirements, potentially investing in more sustainable materials or redesigning product packaging to minimize waste.
The program’s eco-modulation fee structure further incentivizes companies to adopt more sustainable practices by adjusting fees based on packaging materials used. Brands that rely on non-recyclable or hard-to-recycle materials will face higher costs, creating financial pressure to transition to more eco-friendly alternatives.
Penalties for Non-Compliance
Businesses that fail to comply with the Colorado Producer Responsibility Program will face stringent penalties:
First-time violations can result in fines of up to $5,000 per day.
Repeat offenses within 12 months can lead to penalties of $10,000 to $20,000 per day, depending on the number of violations.
Ongoing violations accrue additional fines of $1,500 to $6,000 per day until the business is compliant.
The law allows for injunctive relief, which could lead to legal action or forced operational shutdowns for companies that persistently fail to comply.
Best Practices for Navigating the Producer Responsibility Program
Establish a cross-functional compliance team: Involve legal, supply chain, and sustainability departments to ensure all aspects of the law are covered.
Stay informed: Regularly review updates from Circular Action Alliance and the Colorado Department of Public Health and Environment to stay ahead of regulatory changes.
Leverage eco-modulation: Adopt sustainable packaging designs and materials to take advantage of reduced fees and improve your brand’s environmental impact.
Seek external expertise: Work with a sustainability consulting firm to ensure your strategy is comprehensive, up-to-date, and aligned with industry best practices. Seek legal counsel if your brand is unsure if they are subject to the EPR law.
How Snaplinc Consulting Can Help
With numerous deadlines, reporting obligations, and potential penalties, businesses need a clear path forward. This is where partnering with a sustainability consulting firm can offer significant value. From compliance assessments to strategic planning, consultants can help businesses not only meet their regulatory obligations but also turn sustainability into a competitive advantage. Snaplinc partners with brands in:
Comprehensive Compliance Audits: We conduct detailed assessments of your current packaging materials and waste management practices to identify areas where changes are needed to comply with the act. This includes evaluating recyclability, sustainability, and the efficiency of your waste streams.
Producer Responsibility Organization (PRO) Navigation: We guide you through the process of joining a PRO, ensuring that your business understands its responsibilities and selects the most cost-effective and compliant approach.
Packaging Redesign and Innovation: Our team helps you transition to sustainable, recyclable, and compliant packaging solutions. We provide insights into material alternatives and design strategies that reduce environmental impact while meeting the act’s stringent recycling requirements.
Training and Internal Education: We offer comprehensive training programs for your team to ensure they understand the new recycling standards and can implement best practices across your organization.
Ongoing Monitoring and Reporting: As the act evolves, we provide ongoing support to keep your business up to date with any regulatory changes. We also assist in submitting reporting to demonstrate compliance and environmental performance to regulators and stakeholders.
By partnering with experts, companies can turn the challenges of the law into opportunities for operational improvements and enhanced sustainability credentials.
Conclusion
The Colorado Producer Responsibility Program for Statewide Recycling introduces a new era of accountability and sustainability for businesses operating in the state. While the law is complex and evolving, it also presents an opportunity for brands to enhance their sustainability efforts and improve their operational efficiency. Now is the time to act—failure to comply can result in significant financial penalties and reputational damage, but with the right strategy, businesses can turn this challenge into a competitive advantage.