Colorado’s Producer Responsibility Program for Statewide Recycling Act (House Bill 22-1355) requires covered producers to join a Producer Responsibility Organization (PRO), and through the PRO, fund and manage the collection, processing, and recycling or composting for packaging and paper products. You do not have to pay in right now, you just need to register as soon as possible, and report on packaging use by July 31.
If your business has over $5.6 M in annual sales, you need to determine whether you are considered a “producer” of packaging materials, and you may need to register to become part of Colorado’s program. If you have less than $5.6 M in sales or used less than one ton of packaging material in the prior calendar year, you are exempt. If your business is set up as multiple entities, and they don’t exceed this measurement separately, you should be exempt. If for part of your production you are using a covered packaging material that is then exported out of state, those materials are exempt and do not count toward that one ton of covered material. CNGA recommends that, if you are questioning whether you are a “producer,” you go ahead and register, as you can amend your registration later, if you are found to be excluded from this new regulation.
There are many questions on what materials are covered and who is responsible for the assessment on them. CNGA has reached out to the Circular Action Alliance with questions regarding our industry. We are asking for clarification on:
- If Garden Center A (retailer) is selling plants in pots, is the manufacturer of the pots is the responsible party? Even if they are out of state. If they are selling plants in pots branded with the Garden Center’s name, then the Garden Center is the responsible party? The manufacture of the seeds sold in packets is responsible for the assessment on the seed packets?
- If a WHOLESALE nursery is selling plants/trees that they are re-wholesaling from out of state, that are in branded pots, is the brand owner of those pots is the responsible party? If they are using generic pots, the Colorado wholesale nursery is considered to be the “person who manufactures the product” and must register and determine the weight of packaging materials used. Exempting any that are used to send products out of state.
We have not yet received a response.
Determining your obligations under extended producer responsibility (EPR) laws
There are two primary questions businesses need to ask to help determine if they are obligated under EPR laws:
- Is the material associated with my products covered by the EPR laws?
- Is my business the responsible producer for those materials?
Exempt businesses:
- All ag businesses, including nursery and greenhouse, with under $5M in sales, are exempt from the law.
- All businesses under $5.6M in global revenue are exempt. (adjusted on an annual basis.)
- Any business using less than one ton of covered material (packaging material) for products during the prior calendar year. What is covered material? Click here.
If for part of your production you are using a covered packaging material that is then exported out of state, those materials are exempt and do not count toward that one ton of covered material.
If, considering the above, you are NOT exempt, then:
You are required to register with the Circular Action Alliance as soon as possible, original deadline was July 1. https://circularactionalliance.org/registration. If you suspect you will be required to register, go ahead and do so. Companies will have an opportunity to amend their registrations if needed. You will not have to pay any fees immediately.
By July 31, 2025, obligated producers must sign the Participant Producer Agreement (PPA) and the Colorado State Addendum, login to the Producer Portal, and report by July 31 to meet the Colorado reporting deadline. Again, we do not believe a payment will be due at this point.
Additional resources for producers available here, to help you determine if you are a producer of packaging materials under this new law: https://circularactionalliance.org/producer-resource-center
We will continue to share information with you as we receive it. If you have questions, please reach out and we’ll do our best to answer. The Colorado Department of Public Health and Environment has been conducting outreach and notifications on the applicable requirements of the program to producers through numerous channels including industry conferences, trade organizations, and online updates. Hopefully you are aware of this program and have determined whether it is applicable to your business. If you have not, now is the time.
Possible penalties: As required by the Producer Responsibility Act, a producer shall not sell or distribute products that use covered materials in the state unless the producer is participating in the program as of July 1, 2025. If a producer is found to be in violation of the requirements of the Act and regulations, the CDPHE is authorized to issue an administrative penalty order with noncompliant producers. Producers can register and submit required reporting information with CAA and LPMA through the links provided.
Three recorded webinars which may be helpful: https://circularactionalliance.org/producer-resource-center#FAQ
