Colorado Clears Producer-Funded Recycling Program Set to Begin in 2026

Colorado regulators have approved a producer-funded recycling framework expected to channel more than $200 million into expanding curbside and drop-off recycling statewide starting in 2026, a move officials say will standardize access, improve data transparency and shift costs away from households, according to state regulatory filings and public statements.

The plan, finalized by the Colorado Department of Public Health and Environment, establishes a fee system requiring companies that sell packaged goods in the state to finance recycling services through payments tied to the volume and type of packaging they place on the market. State officials rejected objections from industry groups that sought broader credit for advanced or so-called chemical recycling, signaling a stricter accounting approach to what qualifies as recycled material, observers note.

Colorado’s program builds on a 2022 extended producer responsibility law that aimed to address uneven recycling access across urban and rural areas. State data show that many smaller communities still lack reliable recycling options, while contamination and limited end markets have constrained recovery rates. Analysts say the approved rollout plan moves the policy from concept to execution by setting funding mechanisms, oversight requirements and performance benchmarks.

Under the framework, producer fees will be pooled and redistributed to local governments and service providers to cover the cost of collection, processing and public education. Regulators say the model is designed to eliminate direct charges to residents while creating a clearer picture of how much packaging is actually recycled in Colorado, rather than counted through estimates or offsets. The state will require detailed reporting and verification to track material flows, an element that environmental groups have long argued is missing from voluntary recycling systems.

The American Chemistry Council had urged regulators to allow greater recognition of chemical recycling technologies, particularly for hard-to-recycle plastics, but the department concluded that the methods lack sufficient commercial-scale evidence and consistent end-market outcomes. Industry groups argue that excluding those technologies could slow innovation, while environmental advocates counter that looser standards risk overstating recycling performance and undermining public trust.

Supporters of the plan say it places Colorado among a small group of states using mandatory producer fees to underwrite recycling infrastructure, a model already influencing policy debates elsewhere. Suzanne Jones, executive director of the nonprofit recycler Eco-Cycle, said the decision prioritizes verifiable results over marketing claims and could serve as a template for other jurisdictions seeking to modernize recycling systems.

Looking ahead, implementation will hinge on how quickly producers adapt to the fee structure and how effectively funds are deployed to expand service coverage. Observers note that rising packaging volumes and volatile recycling markets could test the program’s financial assumptions, but consistent funding and statewide standards may help stabilize the system over time.

Source: KUNC

SUNSHINE Spotlight: Colorado’s approval of a producer-funded recycling rollout sets the stage for statewide service expansion in 2026 while tightening standards on what counts as real recycling.