Colorado’s ambitious effort to expand recycling access statewide is facing another legal challenge, raising new questions about the future of the state’s producer responsibility program and the fees that fund it.
The latest lawsuit was filed by the National Association of Wholesaler-Distributors (NAW), a trade association representing distributors nationwide. The group is challenging Colorado’s extended producer responsibility law, which requires companies responsible for consumer packaging to help finance the state’s recycling system. The lawsuit argues, among other claims, that the program gives excessive authority to a private entity and raises constitutional concerns.
The legal challenge follows an earlier lawsuit filed by the Independent Lubricant Manufacturers Association (ILMA), which disputes the fees imposed under the program and argues that the implementation process violates constitutional protections and requirements established by Colorado law. That case remains pending.
Colorado’s producer responsibility program was designed to shift the cost of recycling from residents and local governments to companies that produce packaging. The state approved its statewide recycling plan in December 2025, with the goal of making convenient recycling available to every Colorado household while encouraging producers to develop more recyclable and sustainable packaging.
The program is expected to generate hundreds of millions of dollars annually for recycling services and infrastructure. The Circular Action Alliance was selected to administer the producer responsibility program, while the Colorado Department of Public Health and Environment oversees the broader system.
The growing litigation could affect the timing, financing and structure of Colorado’s recycling expansion as the state moves toward broader access to curbside recycling.
State officials have generally declined to comment on ongoing litigation. The outcome of the lawsuits could determine whether Colorado’s current producer-funded approach proceeds as planned or requires changes to its implementation.
Published August 2026
