Exploring Colorado's Proposed Ecomodulation Bonuses
On September 22, 2025, the Circular Action Alliance (CAA) hosted a quarterly update call to provide information on Colorado’s Extended Producer Responsibility (EPR) for packaging program, the progress in implementing Oregon’s EPR program, upcoming deadlines for California’s program, and the status on emerging programs (Maryland, Minnesota, Maine, and Washington).
The one-hour webinar was packed with updates on program timelines, deadlines, effectiveness, and more—check out the takeaways from our Marketing & Sustainability Specialist, Mitch Webster, here on LinkedIn.
In this article, we will explore the proposed plan for Colorado’s ecomodulation program, which was presented by Rachel Zerowin—CAA’s Communications Manager for Colorado EPR.
Colorado’s unique approach includes both bonuses (decreased fees) and maluses (increased fees / penalties), differing from Oregon’s current ecomodulation program which focuses solely on bonuses. It is important to note that plans are subject to change, as the Colorado Department of Public Health & Environment (CDPHE) is aiming for a potential program plan approval by mid December 2025.
CAA’s proposed ecomodulation plan for Colorado’s EPR for packaging program includes five incentives that decrease dues and three maluses that increase dues—an effort to incentivize and deter packaging-related practices. Before we dive into that, let’s take a look at the concept of ecomodulation in EPR for packaging.
Ecomodulation Explained
Ecomodulation (a.k.a. eco-modulated fees) is a component of EPR programs that goes beyond mandatory reporting and fee payments to reward (or punish) producers for voluntary packaging improvements and design updates.
“Rewards” come in the form of reduced EPR dues / fees for the following year. This can take many formats and will vary state by state. For example, Oregon’s ecomodulation bonuses are focused on rewarding producers for the submission of voluntary life cycle assessments (LCAs) and exploration of reusable packaging systems, while Colorado’s seems more focused on rightsizing, PCR, and reuse systems.
For example, in Oregon a producer can submit a third-party reviewed LCA of a primary packaging system to receive up to $20,000 USD in rewards per SKU assessed—this would be credited toward the next year's EPR fee payments. This is Oregon’s Ecomodulation Bonus A which was due August 15, 2025.
Despite variation by program, at its core, ecomodulation works to encourage producers to go above and beyond basic adherence to EPR—to view it as more than merely a compliance program. Ecomodulation is the catalyst for producers to begin reducing environmental impacts of packaging systems right from the start—the design phase and other upstream phases—and receive reduced EPR fees along the way.
You might be wondering . . . isn’t EPR about boosting recycling infrastructure and diverting packaging waste from landfills and ecosystems? Why ecomodulation and a focus on design and production changes?
Oregon’s Department of Environmental Quality (DEQ) puts it brilliantly in their Guidance on Ecomodulated Fees doc:
“Evidence suggests that some recyclable items may be more impactful than non-recyclable alternatives, even when the benefit of recycling is accounted for, and even if recycling is maximized. This is because the environmental impacts of production are often many times larger than the impacts of disposal, and because recycling can never fully mitigate the impacts of production. So when comparing competing materials against each other, variance in upstream impacts between those materials is often a more important factor than recycling, at least for materials that contribute a significant percentage of the overall package.”
Now that we have provided an overview of ecomodulation and its purpose, we will focus on the current plan for Colorado’s ecomodulation program.
Ecomodulation Incentives in Colorado’s EPR Program
Colorado’s EPR for packaging program was signed into state law in June of 2022, which according to the CDPHE requires that by January 1, 2026 the Executive Director of CDPHE must develop an “eco-modulation bonus schedule designed to reduce producer responsibility dues of producers who meet certain benchmarks.”
The public comment period on the proposed ecomodulation plan closes on September 28, 2025. Learn more here.
In the webinar, Zerowin highlighted that CAA will use ecomodulation factors to do two things:
“Lower producer responsibility dues to incentivize certain practices”
“Increase producer responsibility dues to deter certain practices”
From our team's understanding, this makes Colorado’s ecomodulation program unique, as Oregon’s seems to be focused solely on incentivization of practices (LCA, reuse systems, etc.) and not deterring.
Zerowin explained that the “practices” that will be rewarded include five areas:
“Reductions in the amount of packaging materials used for products”
“Innovations and practices to enhance the recyclability or commodity value of covered materials”
“High levels of PCR material use”
“Designs for the reuse and refill of covered materials”
“High recycling and refill rates of covered materials”
Analyzing the five areas above, it seems CAA is focused on rightsizing, recyclability and commodity value, PCR use, reusable packaging systems, and refill / recycling rates for producers in Colorado.
As we explored above, this could look like the following:
A producer in Colorado decides to redesign a packaging system for a SKU in 2026 to include 75% PCR content, raising it from 30% PCR content in the original design. They submit progress and proof to the CAA & CDPHE and are rewarded with a reduction in fees for that SKUs packaging system in 2027 EPR fee payments.
It is interesting to note that there is no current inclusion of life cycle assessments like Oregon’s plan—meaning producers should not expect CAA to treat each program the same when it comes to ecomodulation.
For more information on the CAA’s plan for ecomodulation incentives in Colorado’s program, we recommend reaching out to Rachel Zerowin or the CDPHE.
Ecomodulation Maluses in Colorado’s EPR Program
As noted above, what makes Colorado’s proposed ecomodulation program unique (from our understanding) is the focus on both incentives and maluses, rather than just incentives.
In the webinar, Zerowin explained that maluses: “Increase producer responsibility dues to deter certain practices.”
Laying out three areas that would lead to increased EPR dues for a certain SKU for the following year:
“Designs and practices that increase the costs of recycling, reusing or composting covered materials”
“Designs and practices that disrupt the recycling of other materials”
“For producers using covered materials that are not on the minimum recycling list”
Analyzing the three areas, it appears CAA is working to use increased fees to decentivize producers from making packaging design changes that make recycling, reuse, and composting more costly and complicated, using designs that make recycling of other materials in a SKU less recyclable, and using certain materials that are not meeting recycling goals.
This could look like the following:
A producer in Colorado decides to redesign a packaging system for a SKU in 2026 to cut costs and shifts from a monomaterial packaging system to a multi-material packaging system that is more costly to recycle and is expected to have a lower recycling rate. The CAA or CDPHE flags this and increases the 2027 fees for that SKU to “punish” the producer and deter them from redesigning other packaging systems in the same manner.
Again, the ecomodulation plans described above are not yet approved by the CDPHE and have only been proposed by the CAA—more information is expected to be released in the coming months. But since CAA decided to share this at the quarterly meeting, we would recommend analyzing your own packaging systems to see where you might apply for bonuses and potential penalties.
Upcoming Dates: Timeline for Colorado’s Program
The CAA includes a timeline on their Colorado page, including the following upcoming dates:
January 1, 2026:
Producers pay dues to CAA on or before this date—based on 2024 supply data submitted on July 31, 2025.
Early 2026:
The program is expected to “begin.”
June 30, 2026:
CAA to pay administrative dues to the CDPHE.
For more information on the development of Colorado’s EPR for packaging program, reach out to Juri Freeman—CAA Executive Director for Colorado’s program.
Check out the full CAA webinar here.
Prepare for Ecomodulation with Online Training
Now that you have a grasp of the potential ecomodulation programs in both Colorado and Oregon, you might be wondering how you can prepare to stay ahead of the curve and win bonuses and reduce your chances of being penalized.
Here at The Packaging School, we have a robust collection of self-paced, online courses and certificate programs to help you prepare for ecomodulation and all things EPR.
Programs cover material science and components of different covered packaging materials, life cycle assessment (LCA) training to evaluate alternatives, and packaging redesign to help ensure your design changes for ecomodulation bonuses don’t forfeit ergonomics and brand equity.
Interested in finding a program fit for you or your team? Book a free 15-min demo call here.
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