8legs: Circular action alliance

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Colorado is set to launch its big recycling expansion. Small companies sue to say not so fast.

A lawsuit in Denver challenges Colorado’s producer packaging fee, claiming constitutional and statutory violations.
ILMA argues the fee program violates interstate commerce rules and places higher costs on smaller companies.
The suit asserts the health department delegated fee setting to a private alliance dominated by large packaging brands.
The lawsuit claims the program could raise hundreds of millions annually for grants to cities and nonprofits.
ILMA seeks negotiations or an injunction to alter Colorado’s packaging fee approach.
The suit targets potential overreach in how the program funds grants and administers the fees.
Colorado officials have not publicly commented on the litigation as of the filing.
The producer-fee program aims to fund grants to expand curbside and other recycling programs across Colorado.
The suit cites Oregon’s similar legal challenge as context for its arguments.
If the suit succeeds, Colorado might see changes to how fees are set and used for recycling programs.

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