HB 22-1159

HB 22-1159, which has been signed into law in Colorado, establishes a new Circular Economy Development Center within the Department of Public Health and Environment. This center aims to boost recycling and composting markets by identifying gaps and opportunities across the state and providing necessary support for these industries. The center will also report annually on its progress until September 1, 2030, when it is set to be reviewed and potentially discontinued. Additionally, the bill updates grant programs to remove restrictions that limited funding for waste haulers and landfill operators, allowing them to receive more comprehensive grants and increasing the maximum single-grant award amount from 20% to 50%. This change aims to enhance support for infrastructure development in waste management.

Official Summary

The act creates the circular economy development center (center) in the department of public health and environment (department). The purpose of the center is to grow existing markets; create new markets; and provide necessary infrastructure, systems, logistics, and marketing to create a sustainable circular economy for recycled commodities and compost in Colorado. On or before July 1, 2023, subject to available appropriations, the department must contract with a third-party administrator to operate the center. The center must conduct a statewide, end-market gap analysis and opportunity assessment and submit a final report of the analysis and assessment to the department by August 1, 2024. Beginning September 1, 2023, and on or before each September 1 thereafter, the center must also submit a report to the department describing the progress of the center. The department must include the report in its annual presentation to the general assembly pursuant to the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act". The center is repealed, effective September 1, 2030. Before the repeal, the activities of the center are scheduled for a sunset review by the department of regulatory agencies. The act requires the front range waste diversion enterprise (enterprise), in coordination with the department, to pay for direct and indirect costs associated with the operation of the center through the front range waste diversion cash fund (fund). The act also makes changes to the front range waste diversion enterprise grant program as follows: Current law imposes limitations for grant applications that are received from a waste hauler or a landfill owner or operator. Specifically, as to the portions of such an application that relate to infrastructure or equipment, only 50% of infrastructure or equipment can be funded through the grant program and, if the board of directors of the enterprise (board) awards a grant to a waste hauler or landfill owner or operator for infrastructure or equipment, the grantee is ineligible to receive a grant for the following 5 years. The act removes these limitations. Current law prohibits the board from allocating more than 20% of the annual fund revenue in any single grant award. The act raises this maximum to 50%. The act also requires the department to use money appropriated from the recycling resources economic opportunity fund to pay for up to 40% of the direct and indirect costs associated with the operation of the center. Under current law, the solid waste user fee is repealed, effective July 1, 2026. The act eliminates this repeal date and extends, from September 1, 2029, to September 1, 2030, the repeal date of a specific user fee that is associated with the solid waste user fee. (Note: This summary applies to this bill as enacted.)

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