Act Now: Key Steps for Compliance with Oregon and Colorado’s EPR Regulations
Oregon and Colorado enacted Extended Producer Responsibility (EPR) laws that require producers to manage and finance the recycling of their packaging, shifting costs from local governments to businesses. These laws create compliance challenges in meeting obligations, managing fees through sustainable design, and navigating evolving regulations. Both states mandate registration with the Circular Action Alliance (CAA), detailed reporting, and fee payments based on material types and volumes.
Oregon’s program begins in 2025 and Colorado’s starts in 2026.
Increased Sustainability
Extended Producer Responsibility (EPR) is an environmental policy approach that makes producers responsible for the entire lifecycle of their products, especially for the take-back, recycling, and final disposal of packaging. This strategy aims to reduce the environmental impact of products, promote sustainable design, and shift the financial and operational burden of waste management from municipalities and taxpayers to the producers themselves.
Recognizing the pressing need to modernize their recycling systems and combat plastic pollution, both Oregon and Colorado have enacted comprehensive EPR laws for packaging, placing them at the forefront of this sustainability movement in the United States. While sharing the overarching goal of enhancing recycling and reducing waste, the specific frameworks adopted by Oregon and Colorado exhibit notable similarities and differences in their scope, implementation timelines, and operational mechanisms.
Oregon's Plastic Pollution and Recycling Modernization Act
Oregon took a significant step towards a circular economy with the passage of the Plastic Pollution and Recycling Modernization Act (RMA) in August 2021. This legislation represents a paradigm shift in how the state manages post-consumer packaging and paper. The RMA mandates that producers of "covered products"—including various types of packaging, printing and writing paper, and food serviceware—assume responsibility for their end-of-life management.
Here are key features of Oregon's EPR framework.
Broad Scope of Covered Materials
The RMA encompasses a wide array of materials, including plastic containers, glass bottles, aluminum cans, paper-based packaging, and food serviceware. This comprehensive approach aims to address a significant portion of the waste stream.
Producer Responsibility Organization (PRO)
Oregon has selected the Circular Action Alliance (CAA) as the sole PRO to administer the program. Producers are required to register with the CAA, pay fees based on the quantity, weight, and type of covered materials they sell into the state, and report data on their packaging.
Implementation Timeline
Oregon is on a fast track for implementation. Producers were required to register with the CAA, and the deadline for the first annual reporting of 2024 supply data was March 31, 2025. Fee payments are due by July 1, 2025, and the program is officially set to launch in July 2025.
Eco-Modulation
The fee structure in Oregon incorporates eco-modulation, meaning that producers who use more recyclable materials, incorporate post-consumer recycled content, or design for recyclability may benefit from lower fees. This incentivizes environmentally conscious design choices.
Statewide Recycling List and Infrastructure Improvements
The RMA aims to create a unified statewide list of recyclable materials, expand recycling services, upgrade sorting facilities, and improve recycling education for residents and businesses. The fees collected from producers will fund these improvements.
Recycling Rate Targets
Oregon has set ambitious statewide recycling rate goals for plastic packaging and food serviceware, aiming for at least 25% by 2028, 50% by 2040, and 70% by 2050.
Enforcement
Noncompliance with the RMA can result in significant penalties, potentially reaching up to $25,000 per day, with the actual penalty amount to be based on various factors.
Colorado's Producer Responsibility Program for Statewide Recycling
Colorado followed suit, enacting the Producer Responsibility Program for Statewide Recycling Act (HB22-1355) in June 2022. This legislation establishes a statewide program where producers of packaging and paper products are financially and operationally responsible for the recycling of these materials. The core objective is to provide convenient recycling access to all Colorado residents at no additional cost to consumers or local governments.
Here are key aspects of Colorado's EPR framework.
Comprehensive Coverage
Similar to Oregon, Colorado's law covers a broad range of packaging and paper products.
Producer Responsibility Organization (PRO)
Colorado has also designated the Circular Action Alliance (CAA) as the PRO to manage its EPR program. Producers are obligated to register with the CAA, pay dues, and report data on the covered materials they introduce into the Colorado market. The registration deadline for producers was October 1, 2024.
Implementation Timeline
Colorado's implementation timeline is slightly behind Oregon's. Producers will begin reporting data covering the first two quarters of 2025 by August 31, 2025, and the first annual dues payment is required by January 1, 2026. The full rollout of the program is anticipated in 2026.
Post-Consumer Recycled Content (PCR) Targets
Colorado's plan sets targets for minimum PCR content rates for certain materials like paper, glass, metal, and plastic, with the state striving to meet these goals by January 1, 2030, and January 1, 2035.
Reuse and Refill Initiatives
The Colorado program includes an approach to measure and report on the use of reusable and refillable covered materials and establishes goals and strategies for increasing reuse and refill.
Responsible End Markets
A key component of Colorado's framework is ensuring that collected materials are transferred to responsible end markets for recycling.
Enforcement
Failure to comply with Colorado's EPR law can result in an initial penalty of $5,000, followed by daily fines of $1,500. Repeat violations may incur fines up to $20,000.
Similarities and Differences
Both Oregon and Colorado have adopted EPR as a fundamental strategy to overhaul their recycling systems and address the environmental challenges associated with packaging waste.
They share several key similarities, including the following.
Producer Responsibility
The core principle of both laws is to shift responsibility for managing packaging waste from local governments and taxpayers to the producers.
Role of the Circular Action Alliance (CAA)
Both states have selected the same PRO, the Circular Action Alliance, to administer their respective programs. This could potentially lead to some harmonization in reporting and compliance for producers operating in both states. There are several benefits to registering with the CAA including representation by the CAA on behalf of registered producers, ensuring adherence to the law preventing potential legal issues and enhanced reputation by demonstrating a commitment to compliance.
Broad Material Coverage
Both laws encompass a wide range of packaging and paper materials, aiming for a comprehensive approach to waste reduction.
Financial Mechanism
Both frameworks rely on producers paying fees or dues based on the amount and type of covered materials they sell, with these funds being used to finance recycling infrastructure improvements, education, and program administration.
However, some notable differences exist between the two states' approaches.
Implementation Timeline
Oregon is implementing its program more rapidly, with key deadlines in the first half of 2025, while Colorado's full rollout is expected in 2026.
Specific Targets and Initiatives
Colorado explicitly includes targets for post-consumer recycled content and initiatives to promote reuse and refill, which are highlighted differently in Oregon's legislation.
Enforcement Penalties
While both states have penalties for noncompliance, the specific amounts and structures differ.
Implications and the Path Forward
The implementation of EPR in Oregon and Colorado marks a significant turning point in waste management in the United States. By making producers responsible for the end-of-life of their packaging, these laws incentivize more sustainable design, increase recycling rates, and reduce the financial burden on local communities. The early mover status of these states could serve as a model for other states considering similar legislation.
If your business operates in Oregon and Colorado, it’s crucial to understand your obligations under these new EPR laws.
This includes accurately identifying covered products, registering with the CAA, establishing systems for data tracking and reporting, educating employees on compliance obligations, and preparing for fee payments.
Proactive engagement and investment in compliance will be essential for navigating this evolving regulatory landscape and contributing to a more circular and sustainable future.
As these programs mature, ongoing monitoring of their effectiveness, potential adjustments, and enforcement trends will be vital to achieving their environmental and economic goals.
We’re Here to Help
For more information about the impact of EPR laws on your business, contact your firm professional.