Colorado Eco-Modulation
Colorado is the first state to implement eco-modulation. By January 1 of each year, the Colorado Department of Public Health and Environment (CDPHE), in consultation with Interchange 360 and the Colorado Producer Responsibility Advisory Board, will develop an eco-modulation bonus schedule.
In addition, Interchange 360, as required by law, will develop a separate eco-modulation schedule including both bonuses and penalties that will go into effect in 2028.
Colorado Regulated Eco-Modulation Factors
The following chart shows the initial eco-modulated bonuses included in the state’s regulations that Interchange 360 is required to include in fee structures:
| Incentive | Start Date | Bonus | Criteria |
|---|---|---|---|
| On-Package Sorting Instruction | Starting Jan 1, 2029 | 1% | Criteria to be determined |
| Local End Use Benchmark | 2027 | 1% | Item must be on the list or recyclable. 20% PCR generated in the U.S. Utilized by an end market in CO |
| Case Study Benchmark | Starting July 1, 2027 | 1% | Must submit proposal and receive approval from Interchange 360 and state Must take place in CO or paired with investments in CO Bonus accounted for year the final report is published Incentive not to exceed the cost of the study |
Interchange 360 Eco-Modulation Factors
Interchange 360 is currently determining the factors for the state required eco-modulation. The law requires such factors to be released by October 1, 2026.
Eco-Modulation Timeline
The following timeline is based on state regulations and Interchange 360’s Independent Program Plan:
| Date | Description |
|---|---|
| January 1, 2026 – December 31, 2026 | Interchange 360 collects baseline data for future eco-modulation. |
| No later than October 1, 2026 | Interchange 360 publishes dues and guidance for producers to be able to calculate their total producer dues and reductions to dues from the eco-modulation bonuses. |
| No later than January 2027 | Eco-modulation goes into effect (unless otherwise stated in regulations). |
| January 2028 | Eco-modulation factors applied to producer invoices. |
| 2028 | Interchange 360 develops and publishes on-package sorting instruction criteria. |
| 2029 | Bonus for on-packaging sorting goes into effect |
Colorado Dispute Resolution Policy
Interchange 360 adopted the following dispute resolution policy for producers as it relates to eco-modulation in Colorado: