Colorado EPR: Covered Materials, Dues, and Key Dates

The Colorado EPR program is an extended producer responsibility system created by House Bill 22-1355 that shifts the cost of recycling packaging and paper products from local governments onto the companies that put those materials into the Colorado market. Producers register with a designated nonprofit, the Circular Action Alliance (CAA), and pay annual dues that fund statewide collection, processing, and expansion of recycling services. The Colorado Department of Public Health and Environment (CDPHE) approved the final program plan on December 9, 2025, and dues payments began January 1, 2026.¹

Who Has to Participate

The law assigns responsibility based on where a company sits in the supply chain. The primary obligation falls on the brand owner of a product sold or distributed in Colorado. If the brand owner has no U.S. presence, responsibility shifts to the manufacturer. If the manufacturer is also absent from the U.S. market, the obligation falls on whoever imports the product into the country for sale in Colorado.² The cascade prevents gaps and prevents the same item from being counted twice.

Online sellers shipping directly to Colorado consumers are covered. A company based outside Colorado still qualifies as a producer if its products enter the state’s market in covered packaging. The definition also reaches companies that use covered materials for their own internal business operations, not only companies selling consumer goods.

Exemptions

The program targets large-scale producers. Several categories of business are exempt:

Small businesses with less than $5 million in annual gross revenue in the prior year. On-premise alcohol sales do not count toward this threshold.
Low-volume producers that used less than one ton of covered materials for products sold or distributed in Colorado during the previous calendar year.
State and local government entities and nonprofit organizations, which are excluded from the definition of “producer.”
Agricultural employers with less than $5 million in in-state revenue.
Local food establishments and construction contractors meeting specific criteria.

The $5 million threshold is based on global gross revenue, so a company cannot claim the exemption by pointing only to its Colorado sales while pulling in far more elsewhere. Keep detailed records of revenue and material volumes if you plan to claim any of these exemptions.

What Materials Are Covered

Covered materials fall into two categories: packaging and paper products. Packaging includes primary containers like bottles and jars, secondary wrapping, and shipping boxes. Paper products include newspapers, direct mail, magazines, and catalogs. Glass, metal, and the plastic resins commonly used in food and beverage containers are all within scope.³

The approved plan divides covered materials into two lists. The Minimum Recyclable List contains materials that must be collected statewide with the same convenience as regular trash pickup. The Additional Materials List covers items that may be collected in specific areas through curbside service, drop-off centers, or other methods depending on local infrastructure.⁴

Materials Excluded From the Program

The statute carves out categories where federal regulation, public safety, or practical concerns make inclusion impractical:²

FDA-regulated product packaging, including containers for prescription drugs, medical devices, dietary supplements, infant formula, and medical food.
Packaging designed to store or protect a product for at least five years.
Bound books.
Newspaper publications primarily featuring news and current events from primary sources.
Industrial packaging used exclusively in manufacturing or industrial processes.
Packaging for products regulated under federal pesticide law or already covered by a paint stewardship program.
Child-resistant containers required under the federal Poison Prevention Packaging Act.
Sanitary paper products that could become unsafe to handle after use.
Financial statements, billing statements, and medical documents that laws require to be provided in paper form.
Beverage containers already subject to a deposit program.
Packaging used to contain reconditioned portable electronic devices sold as refurbished.

Registration and Annual Dues

Every covered producer must register with the Circular Action Alliance. Colorado’s regulatory deadline was October 1, 2024. As of July 1, 2025, any producer that has not registered is prohibited from selling or distributing products using covered materials in the state.⁵ Noncompliance is not just a fine question; it means losing access to the Colorado market.

Producers pay annual dues calculated on the volume and type of materials they put into the market, with payments beginning January 2026. The dues fund collection, processing, infrastructure expansion in underserved areas, public education, and CAA’s own operations. Producers must also submit annual material data reports to remain in good standing.

Eco-Modulated Fees

Dues are not flat. The fee structure is eco-modulated, meaning producers pay less when their packaging is designed responsibly and more when it is not. The law directs CDPHE, CAA, and the advisory board to build a fee schedule that rewards producers for:

Reducing the total amount of packaging they use
Achieving high recycling and refill rates
Designing packaging for reuse or refill
Using high levels of post-consumer recycled content
Innovating to improve recyclability or material value

Fees go up for producers using materials that are not on the Minimum Recyclable List, or whose packaging designs disrupt the recycling process or increase sorting and processing costs. The mechanism creates a direct financial reason to redesign packaging before it reaches consumers.

Penalties for Noncompliance

Enforcement runs on two tracks. The first is the July 2025 market access prohibition: an unregistered producer cannot legally sell or distribute products using covered materials in Colorado.⁶ For national brands with meaningful Colorado revenue, that alone is a strong motivator.

The second track is civil penalties. The statute authorizes fines of up to $10,000 for the first day of a violation, with additional daily penalties for continued noncompliance.² These fines apply to failures to register, pay dues, or otherwise meet program requirements.

Key Dates for Producers

2022: Governor signs HB 22-1355.
2023: CDPHE designates the Circular Action Alliance as the program’s nonprofit operator.
October 1, 2024: Regulatory deadline for covered producers to register with CAA.
February 1, 2025: CAA submits its draft program plan to CDPHE.
July 1, 2025: Unregistered producers are barred from selling or distributing covered products in Colorado.
December 9, 2025: CDPHE approves the final program plan.
January 1, 2026: Producers begin remitting annual dues.⁴

What Colorado Residents Will Notice

The most concrete change for households is expanded, no-cost recycling. Under the program, waste service providers and communities that participate will no longer charge consumers for recycling services being provided on CAA’s behalf.⁴ The program is projected to expand convenient recycling access to up to 700,000 additional households and nearly double the state’s recycling rate for paper and packaging.

Materials on the Minimum Recyclable List must be collected with the same convenience as regular trash. If you get curbside garbage pickup, you should eventually get curbside recycling for those materials at no additional cost. Items on the Additional Materials List may become available depending on your area’s infrastructure and what local programs can handle.

Tax Treatment of Program Dues

Annual dues paid to CAA are a regulatory cost of doing business. The IRS generally treats annual fees paid to government agencies or government-mandated programs for licenses, permits, and regulatory compliance as deductible business expenses in the year they are paid or incurred, typically reported under “Taxes and Licenses” on Schedule C. Fines or penalties assessed for violating the program are not deductible. Keep records of all dues payments and material reporting data for at least three years from the date of the related tax filing; six or seven years provides added protection if questions arise later.⁷

1
Colorado Department of Public Health and Environment. Producer Responsibility Program
2
Colorado General Assembly. Colorado Revised Statutes – House Bill 22-1355
3
Colorado General Assembly. HB22-1355 Producer Responsibility Program For Recycling
4
Circular Action Alliance. Circular Action Alliance Colorado
5
Circular Action Alliance. Producer Registration
6
Circular Action Alliance. What Producers Need to Know About Colorado’s Producer Responsibility Program
7
Internal Revenue Service. How Long Should I Keep Records?