Colorado House Bill 22-1355 (2022) - (Introduced)

CO
03/31/2022
03/31/2022
Original
Colorado House Bill 22-1355 (2022) (COHB221355)
Introduced
05/11/2022
Version 2
Colorado House Bill 22-1355 Rerevised (2022) (COHB221355RR)
Passed Legislature

Overview

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.

All Packaging Types

Packaging means any material that is intended for single or short term use that is used for the containment, protection, handling, delivery, or presentation of products to a consumer a the point of sale, including through the internet. This includes food and beverage packaging that is ordinarily disposed of after a single use and not designed for reuse or refill.

Paper Products

Paper is included under covered products and includes items like flyers, brochures, booklets, magazines, paper used for writing and others.

Exclusions

Exclusions include:

  1. Packaging materials intended for long term storage of a durable product for atleast 5 years
  2. Paper products that could become unsafe or unsanitary through use
  3. Bound books
  4. Containers subject to returnable container deposits
  5. Packaging materials exclusive to industrial or manufacturing process
  6. Packaging used for FDA regulated drugs, medical devices, and dietary supplements or biological materials related to animals like vaccines
  7. Toxic or hazardous materials or packaging related to containers for architectural paint
Household/​Residential

The producer responsibility program must provide curbside recycling that is as convenient as the existing collection plan. The bill includes service to single and multifamily residences.

Government, Institutional, or Academic

Schools, government buildings are covered entities in the bill and the PRO must provide recycling services.

Business or Commercial

Businesses, including hospitality, are covered entities in the bill and the PRO must provide recycling services.

Public Spaces

Public places are covered entities in the bill and the PRO must provide recycling services.

Brands

If the product is sold, offered for sale, or distributed in Colorado using packaging materials under the manufacturer's own brand or if there is no brand, the person that manufactures the product is the producer.

Licensees

If the product is manufactured by a person other than the brand owner, the person that is the licensee of the brand or trademark under which a packaged item is sold, offered for sale, or distributed is the producer, whether or not the trademark is registered in Colorado.

Importers/​Distributors

For a paper product that is a magazine, newspaper, catalog, or similar publication the publisher of the paper products or for any other covered material, the person that first distributes the product into the state is the producer.

Small Businesses

A producer is exempt if they have less than 5 million dollars in gross total revenue during the prior year or uses less than 1 ton of covered materials for products sold, offered for sale, or distributed in Colorado. A builder, construction company or contractor are exempt.

Governments

The state or local governments are excluded from the definition of producer.

Charities

Nonprofits are excluded from the definition of producer.

Retailers

A retail establishment that pays a specific annual license fee or fees required for retail food establishments related to Denver's code of ordinances is exempt.

Collective Producer Responsibility

Producers must form a Producer Responsibility Organization (PRO) and discharge responsibilities to that organization.

Individual Producer Responsibility Option

Producers may comply individually.

Nonprofit Requirement

PRO(s) must be nonprofit organizations.

Financial and Partial Operational

The PRO is responsible for the costs and operations by providing service or contracting with public and private service providers .

Operational Costs

The plan must cover all recycling services, including the collection, transportation, sorting, and processing of covered materials at both curbside services and drop-off centers.

Education and Outreach

The plan must cover the development and implementation of a public statewide education and outreach on recycling and reuse programs.

Administration

The plan must cover costs related to the administration of recycling programs.

Modulated

The dues paid to a PRO by producers must be based on the weight of the covered materials. The dues for each type of covered material will be defined by the organization and must vary based on market value including the cost to collect, transport, process, and marker that type of covered material.

Recycled Content

The fees must incentivize high level of PCR materials that do not disrupt the recycling of other materials.

Reuse

The fees must incentivize designs for the reuse and refill of covered materials.

Design

The fees must incentivize reductions in the amount of packaging materials used for products.

Recyclability

The fees must incentivize innovations and practices to enhance recyclability or value of covered materials.

Targets Set in Legislation

The plan must set minimum rate targets for minimum collection rates, minimum recycling rates, and minimum PCR content rates that the state will strive to meet by January 1, 2030 and January 1, 2035.

Maximizes Use of Existing Infrastructure

The plan must utilize and expand on providers' existing recycling services.

Convenience Standards

The plan must describe how the PRO will meet certain convenience standards and statewide recycling collection.

Deadline to Register

Producers must establish a non-profit organization PRO on or before June 1, 2023.

Deadline to Submit Plan

The PRO must submit a plan proposal to the advisory board and executive directory on or before February 1, 2025.

Date of Implementation

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

Plan Review and Approval

The executive director will approve, reject, or approve with amendments within 60 days after receiving the plan proposal.

Reporting Requirements

Before March 31st of the 2nd year of the programs implementation and annually thereafter the PRO shall submit a report to the advisory board describing the progress of the program.

Penalties

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

End-of-Life Instructions

The PRO shall include proper end-of-life management of covered materials in education and outreach materials.

Litter Prevention Campaigns

The PRO shall include information on how to prevent litter in it's education and outreach materials.

Program Awareness

The PRO shall include locations and availability of recycling services under the program in education and outreach materials.

Sole Responsibility of PRO

The PRO shall develop and implement a statewide education and outreach program.

Required Consultation During Plan Development

The PRO shall consult with the advisory board at all part of the process including plan review and approval, amendments, recommendations, and annual reporting.

Stakeholder Advisory Committee

The advisory board shall convene its first meeting no later than March 1, 2023 and will include 13 members. It will be overseen by the Colorado Department of Public Health and Environment. The voting board members would include representatives of 3 local governments, a hauler, a recycling facility, a compost facility, a landfill, 2 nonprofit groups, 2 packaging or paper manufacturers, and a trade association among others. The PRO and Colorado will each get a non-voting seat.

Defines "Recycling"

Recycling means the processing by means of a manufacturing process of a used material into a product or secondary raw material.

Antitrust Protections

This bill extends antitrust protections to members of a PRO for actions taken in accordance with this regulation.

Specifies How Rates Are Measured

The recycling rate means the weight of covered materials that are recycled under the program in a calendar year divided by the weight of covered materials used for products sold, offered for sale, or distributed by producers within or into Colorado in the same year, expressed as a percentage. The recycling rate is measured at the point where collected covered materials have been processed and are ready for sale or delivery to material reclaimers or end markets after processing at a MRF or similar establishment.

No Point-of-Sale Fees

A person shall not charge any kind of point-of-sale or collection fee to consumers to recoup costs in meeting the obligations of this bill.

Needs Assessment

On or before September 1, 2023 the PRO will hire a third party to conduct a needs assessment of the recycling services in Colorado. On or before April 1, 2024, the PRO must report the results of the needs assessment to the advisory board and the executive director.

Statewide List

The PRO must provide a list of covered materials, called the minimum recyclable list, that providers performing services under the program must collect to be eligible for reimbursement under the program. This will be partially determined by the needs assessment.

Defines "Reusable"

Reuse or Refill means the return into the marketplace of a covered material that has already been used in the same manner as originally intended without a change in the covered material's purpose and was intended to be used for its original purpose at least 5 times.