Recycling And Composting Enterprise Grant Program

The bill creates the Colorado recycling and composting infrastructure enterprise (enterprise) within the department of public health and environment (department) to develop and modernize the recycling and composting infrastructure in the state. The enterprise is authorized to issue revenue bonds. The bill creates the Colorado recycling and composting infrastructure enterprise grant program (grant program) within the department to provide grants to eligible entities to:

• Create new or expand existing recycling, recovery, and composting operations;
• Create markets for recycled materials, including the use of food service packaging as feedstock in the production of new products; and
• Facilitate recycling, composting, litter cleanup, and education efforts concerning recycling and composting practices.

The bill creates the Colorado recycling and composting infrastructure enterprise board (enterprise board) to administer the grant program and submit an annual report concerning the grant program. The bill creates the Colorado recycling and composting infrastructure enterprise grant program cash fund (cash fund) and requires the enterprise board to award grants from the cash fund. The bill allows the executive board to promulgate rules to implement the grant program and requires the solid and hazardous waste commission (commission) to promulgate rules establishing a process for calculating the rates at which common types of food service packaging are being recycled or composted in the state, based on recently available data. On or before January 1, 2025, the commission must use the process to calculate such rates. Thereafter, the commission must recalculate each rate at least every 2 years. The enterprise board must evaluate the rates and advise the commission regarding their accuracy. The bill requires the enterprise to determine and impose a fee on food service packaging that is initially sold or offered for sale in the state, as follows:

• On and after January 1, 2022, and until January 1, 2030, the enterprise shall impose a fee in an amount to be determined by the enterprise but which may not exceed three-tenths of a cent on each unit of the food service packaging;
• On and after January 1, 2030, and until January 1, 2035, if the food service packaging is a type of food service packaging for which the commission has calculated a recycling or composting rate that is less than 50%, the enterprise shall impose a fee in an amount to be determined by the enterprise but which may not exceed six-tenths of a cent on each unit of the food service packaging; and
• On and after January 1, 2035, if the food service packaging is a type of food service packaging for which the commission has calculated a recycling or composting rate that is less than 75%, the enterprise shall impose a fee in an amount to be determined by the enterprise but which may not exceed one cent on each unit of the food service packaging.

The enterprise shall collect the fee from the distributor that initially sells the food service packaging into the state. All money collected as fees must be deposited into the cash fund. The bill requires the commission to conduct an assessment of the state's recycling and composting infrastructure on or before January 1, 2022, including examining the types of food service packaging being collected, processed, recycled, or composted in the state. The bill creates the stakeholder advisory committee on recycling (advisory committee) in the department of public health and environment (department) and requires the advisory committee to:

• Conduct a literature review of various policy concepts relating to post-consumer recycled content requirements for packaging;
• Review rates and time frames in which post-consumer recycled content may be feasibly required for all packaging applications and materials; and
• Submit a report on or before July 1, 2022, to subject matter committees of the general assembly, which report must include recommendations in subject matter areas in which the advisory committee achieved consensus and note dissenting opinions in subject matters in which the advisory committee failed to achieved consensus.

For the 2021-22 state fiscal year, the bill appropriates $139,775 to the department for use by the division of environmental health and sustainability to implement the bill.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)