EPR Packaging Programs: Colorado Releases Proposed Schedule for its Eco-Modulated Fees

Producers of packaging and paper products (i.e., covered materials) under Colorado’s Producer Responsibility Program for Statewide Recycling Act (“Act”) have an opportunity to comment on the benchmarks that could raise or lower annual producer dues.

On August 14, 2025, the Colorado Department of Public Health & Environment (“CDPHE”) released a draft eco-modulation[1] bonus schedule. The first of the statutorily required annual schedules under the Act, CDPHE’s draft provides targets and specific fee reduction percentages for producers who can demonstrate achieving certain benchmarks by January 31, 2026.

Producers are eligible for credits of up to a 10% reduction from base dues for a “qualifying material, SKU, or covered material component” (referred to collectively as “Eligible Material”) though further credits (or fees) may be applied by the producer responsibility organization (“PRO”). 6 CCR 1007-2 Part 1 Section 18.9.1(B) (Draft).

The largest potential credit will only apply to a subset of products: producers may receive up to 10% in credit for optimizing packaging for a liquid product through concentration and providing clear instructions on how to dilute/use less of the product (e.g., concentrated laundry detergent with a smaller cap). 6 CCR 1007-2 Part 1 Section 18.9.2(B)(2) (Draft).

More generally, the draft benchmarks include 1% reduction in annual fees by Eligible Material for clear recycling labeling instructions, sourcing Colorado-origin postconsumer-recycled content (“PCR”), receiving a compostable certification, undertaking a case study, and more. 6 CCR 1007-2 Part 1 Section 18.9.2 (Draft).

Currently, the draft benchmarks’ potential reduction in fees seem untethered to the likely costs incurred by producers to achieve them. For example, reaching a minimum of 30% in-state PCR for products produced in Colorado is a high, expensive threshold for receiving merely a 1% reduction in dues per Eligible Material. 6 CCR 1007-2 Part 1 Section 18.9.2(B)(1) (Draft).

Similarly, producers may receive a 1% reduction by Eligible Material that is both (a) certified compostable and (b) meets the requirements pursuant to § 25-17-803 or ASTM D85410-22. An additional 1% credit is proposed for Eligible Materials that have been (a) field tested and accepted at a registered composting facility in Colorado and (b) tested at a different Colorado composting facility annually.  6 CCR 1007-2 Part 1 Section 18.9.2(D) (Draft).

While pursuing the PCR and compostable benchmarks will align with some producers’ environmental commitments, marketing strategies, manufacturing locations, or business practices, it seems likely that many producers will, under the current draft, have limited pathways available for reducing their annual dues.

The eco-modulation fees were developed with input from both the Colorado Advisory Board[2] and Circular Action Alliance (“CAA”), the designated PRO in Colorado. CAA has not yet released its own eco-modulated fee factors, though a summary of possible incentives were included in its Amended Program Plan, submitted to CDPHE in June.[3]

CDPHE’s 30-day comment period on the draft eco-modulation schedule closes September 15.[4]

Emma Roos-Collins is a Senior Policy Analyst at EPR Group Consulting and can be reached at erooscollins@eprgroupconsulting.com.

[1] Defined in the draft as “the approach in which producer responsibility dues are structured and adjusted for the purpose of reducing environmental impacts of covered materials.”

[2] For an overview of the Advisory Board, see https://cdphe.colorado.gov/hm/epr-advisory-board.

[3] Available at https://oitco.hylandcloud.com/cdphermpop/docpop/docpop.aspx?docid=45645438. The Amended Program Plan also has a currently open public comment period with CDPHE, closing September 14^th.  

[4] Stakeholders interested in commenting should email eprcomments@state.co.us. CDPHE recommends: a subject line of “2025 Eco-Modulation Update - [Your Last Name]”, including your full name and organizational affiliation before your comments, and providing reference information (page number, topic/section heading, paragraph number) for each specific comment.