Colorado governor Jared Polis has signed a bill that requires packaging producers and printed paper manufacturers to help operate and fund a new statewide recycling program that aims to increase recycling rates and create a circular economy for all recyclable materials, primarily plastic bottles, paper-based packaging and cans.
“Colorado is committed to evaluating common-sense solutions and cutting-edge technology to increase and improve recycling in our state,” Gov. Polis said in a press release today. “This bipartisan new law is an important step, and will look at new ways to potentially remove the costs of recycling from localities and taxpayers, and save Coloradans money.”
The bill was supported by national trade organization American Beverage and nonprofit conservation group WWF. It has been in the works since 2019 and was designed around the Extended Producer Responsibility (EPR) model which, according to the release, is already in place and seen significant success in Canada and select European countries. Colorado is one of the first states in the U.S. to adopt this type of system with Maine and Oregon recently passing similar laws and California, Massachusetts and Maryland are considering this type of legislation.
“By matching effective waste management practices with accountability, EPR is an essential tool to address plastic pollution,” said Alejandro Pérez, SVP of policy and government affairs at WWF, in a press release. “We have a lot of work to do to achieve a waste-free future, but we are one step further because of Colorado’s actions. The state is setting an example of how industry, environmentalists and policymakers can join forces to transform the way we use, reuse and recycle materials.”
Under the new system packaging producers are responsible for capital, operational, promotional and educational-related costs associated with recycling programs. This includes funding the statewide program, creating universal standards around recyclable materials and promoting recycling among all Coloradans, some of which do not currently have recycling programs available at their homes.
The program will be run by producer-led nonprofit organization, Producer Responsibility Organization (PRO), and the state will likely form a new organization specifically for this purpose, reports the Colorado Sun. The nonprofit will report to an advisory board and be subject to oversight by a state-run agency.
Colorado’s new system provides an alternative to so-called “Bottle Bills,” which have proven to be costly and not extremely effective, according to a report from The New York Times. In the case of many Bottle Bills, the law essentially functions as a tax on beverage producers and distributors who are subject to pay handling or processing fees for empty containers while state governments collect all unclaimed deposits funds. Under the EPR model, fees are built into wholesale prices and spread across the supply chain so that the money continues to go into the system rather than being absorbed by state governments and allocated toward other causes.
“Our 100% recyclable bottles and cans are made to be remade, and one of our industry’s highest priorities is getting them back,” said Katherine Lugar, president & CEO of American Beverage. “Colorado’s legislation is a promising model for creating a circular economy for recyclables, and we applaud Gov. Polis for signing this legislation into law.”
Currently, Colorado’s recycling program generates a 15% return rate which is about half the rate of the national average. With over 6 million tons of recyclable material ending up in the state’s landfills annually, supporters of the law estimate those containers amount to approximately $100 million in lost returns each year. The policy is also expected to bring more jobs and economic development to the state to support collection and processing efforts.
The Colorado Department of Public Health and Environment has until the end of the year to appoint an advisory board and the program is set to launch in 2025. At that time, producers will be required to pay annual dues, determined by the nonprofit on a per-company basis. The amount of those dues will be set in reference to the type of material produced and how recyclable those materials are in addition to an added fee for operating the program. The fees will be updated annually to encourage the adoption of more eco-friendly packaging, according to the Colorado Sun.