Legislative Update With Kim Ransom

Bill of the Day HB22-1355 Producer Responsibility Program For Recycling

Bill summary:

On or before June 1, 2023, the executive director (executive director) of the Colorado department of public health and environment (department) must designate a nonprofit organization (organization) to implement and manage a statewide program (program) that provides recycling services to covered entities in the state, which are defined as residences, businesses, schools, government buildings, and public places. The program is funded by annual dues (producer responsibility dues) paid by producers of products that use covered materials (producers). Covered materials are defined as packaging materials and paper products that are sold, offered for sale, or distributed in the state.

The bill creates the producer responsibility program for statewide recycling advisory board (advisory board) that consists of members who have expertise in recycling programs and are knowledgeable about recycling services in the different geographic regions of the state.

Prior to the implementation of the program, the organization must:

• On or before September 1, 2023, hire an independent third party to conduct an assessment of the recycling services currently provided in the state and the recycling needs in the state that are not being met (needs assessment);
• On or before April 1, 2024, report the results of the needs assessment to the advisory board and the executive director; and
• On or before February 1, 2025, after soliciting input from the advisory board and other key stakeholders, submit a plan proposal for the program (plan proposal) to the advisory board and executive director.

The plan proposal will initially cover recycling services only for residential covered entities. The plan proposal must:

• Describe how the organization will meet certain convenience standards and statewide recycling, collection, and postconsumer-recycled-content rates (rates);
• Establish a funding mechanism through the collection of producer responsibility dues that covers the organization’s costs in implementing the program and the costs of the department in overseeing the program;
• Establish an objective formula to reimburse 100% of the net recycling services costs of public and private recycling service providers (providers) performing services under the program;
• Provide a list of covered materials (minimum recyclable list) that providers performing services under the program must collect to be eligible for reimbursement under the program;
• Set minimum rate targets that the state will strive to meet by January 1, 2030, and January 1, 2035, and describe how the state can meet increased rates after 2035; and
• Describe a process and timeline, beginning no later than 2028, to expand recycling services to applicable nonresidential covered entities.

As part of the program, the organization must:

• Utilize and expand on providers’ existing recycling services to provide statewide recycling services at no charge to covered entities for all covered materials on the minimum recyclable list;
• Develop and implement a statewide education and outreach program on the recycling and reuse of covered materials;
• Contract with an independent third party to conduct an annual audit of the program; and
• Submit an annual report to the advisory board and the executive director describing the progress of the program (annual report).

Effective July 1, 2025, a producer may not sell or distribute any products that use covered materials in the state unless the producer is participating in the program or, after January 1, 2029, as set forth in an additional producer responsibility program that has been approved by the executive director.

The advisory board has the following duties:

• Advise the organization on the needs assessment;
• Review the needs assessment;
• Review the plan proposal and make recommendations to the executive director regarding its approval or rejection;
• Review any necessary amendments to the program, make recommendations on the amendments to the organization, and then make recommendations to the executive director regarding approval or rejection of the amendments;
• Review the annual report submitted by the organization; and
• Consult with the organization on the development and updating of the minimum recyclable list.

The bill establishes an administrative penalty for the organization’s or a producer’s violation of the relevant statutes and rules. The collected penalties are deposited into the recycling resources economic opportunity fund.

HB22-1355 Producer Responsibility Program For Recycling is sponsored by Senator Kevin Priola (Republican), Senator Julie Gonzales (Democrat), and Representative Lisa Cutter (Democrat). The bill is 51 pages long.

The Independent Institute’s Local Government Project

Kathleen Chandler, Director of The Independent Institute’s Local Government Project, joins Kim to explain how the Local Government Project seeks to put the power of government back into the hands of the people by instructing, spreading awareness, and empowering those who wish to involve themselves in their local government’s activities. The Local Government currently has several classes open for enrollment. Go here to learn more.