Colorado Proposes Amendments to EPR Regulations to Implement Eco-Modulation

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The Colorado Department of Public Health and Environment (CDPHE) has released a proposed rule to introduce eco-modulation—a system that lowers dues for producers who meet specific sustainability incentives under the state’s extended producer responsibility (EPR) program for packaging.

Under Colorado’s EPR program, producers of packaging and paper products will begin paying dues to a producer responsibility organization (PRO) in January 2026 and annually thereafter.  When CDPHE first adopted its implementing regulations in June 2024, it left the eco-modulation criteria undefined.  The new proposal fills in those details.

Like other state packaging EPR laws, Colorado’s program aims to shift recycling costs from taxpayers to producers.  Through a PRO, producers are responsible for expanding recycling access, increasing recycling rates, and funding the recycling system.

Eco-Modulation Benchmarks

The proposed rule establishes several voluntary benchmarks that allow producers to reduce their dues by achieving certain environmental performance goals:

  • On-package sorting criteria: Inclusion of sorting instructions and guidance directly on packaging.
  • Local end use: Use of materials that are on the state’s “minimum recyclable” list, contain at least 20% US-generated postconsumer-recycled content, and are utilized by an end-market business in Colorado.
  • Compostability: Use of a material that meets ASTM standards for compostability and complies with certain labeling requirements.
  • Case study: Development of a case study demonstrating measurable benefits to recyclability, waste reduction, or other environmental outcomes for a covered material.

Each benchmark achieved earns producers a 1% reduction in dues for each qualifying material.  Bonuses will be applied to 2027 invoices and all invoices thereafter, except the on-package sorting benchmark, which will only be available starting in 2029.

The proposal additionally provides a pathway for producers to dispute the final application of eco-modulation factors to their dues, and eliminates a requirement that producers “submit documents and records to the PRO if they believe they are exempt from covered material.”

According to CDPHE’s website, the public comment period for the rulemaking ended September 28, 2025.  However, the page states that the Solid & Hazardous Waste Commission is currently accepting comment, and “strongly encourages” that comments be submitted by November 7.  CDPHE will present the commission with its proposed amendments on November 18, 2025.

The statement of purpose accompanying the proposed rule can be found here.