How Eco-Modulation Fees Work Under the RRA
What is eco-modulation, and is the word in the statute?
Eco-modulation means adjusting a producer's fee for the design of its packaging or paper. Neither that word nor the name "Recycling Reform Act" (RRA) appears in chapter 70A.208 RCW; Ecology uses the name as its label for the chapter.
The rule people mean is RCW 70A.208.160(2), paragraphs (c) and (d): the fee must incentivize listed design attributes and discourage materials and design attributes whose impacts the same methods can reduce.
Two outside sources use related words.
- Ecology says Circular Action Alliance (CAA) "is required to set modulated fees that incentivize packaging that is recycled or composted under the program plan." That is narrower than the statute's list, so this article follows the statute.
- CAA describes eco-modulated fees as adjustments made to fees in the form of incentives ("bonuses") or disincentives ("maluses"). Its Producer Resource Center page presents this as part of a national fee method across states, not a Washington fee schedule.
A PRO is the organization through which a producer meets its duties: see what a PRO is and how to join one and CAA's role in Washington.
How are producer fees set before and after plan approval?
The PRO sets and collects them, in two stages, and the statute sets no rate for either. The plan dates are in the deadlines article.
| Stage | What the statute says |
|---|---|
| Until the PRO has an approved plan | The PRO may charge each member producer by unit-based, weight-based, volume-based or sales-based market share, or by another method it determines to be an equitable determination of each producer's payment obligation. Total fees must cover the PRO's costs in full. (RCW 70A.208.160(1)) |
| After the plan is approved | The PRO must collect an annual fee from each member producer that meets the six requirements below. (RCW 70A.208.160(2)) |
The six requirements in RCW 70A.208.160(2)(a) through (f):
- (a) Amount. The fee varies with the total amount of covered materials the producer introduced in the prior year, calculated per unit, such as per ton, per item, or another unit of measurement.
- (b) Cost. The fee reflects program costs for each covered materials type, net of commodity value when used as recycled material, plus allocated fixed costs that do not vary by type. Fees for materials on the statewide lists must be proportional to the PRO's costs, and fees must discourage using materials that are not on those lists.
- (c) and (d) Design. The fee incentivizes the design attributes listed in the next section and discourages materials and design attributes whose impacts those methods can reduce.
- (e) Reuse. Covered materials managed through a reuse system are charged only once, upon initial entry into the marketplace.
- (f) Revenue. Fees must pay in full Ecology's fee, the obligations in the approved plan including service provider reimbursement, funding for the reuse financial assistance program, the PRO's operating costs, and a financial reserve.
The fee method is written in the plan. A draft plan must include producer fees, a description of the process used to calculate them, and an explanation of how they meet RCW 70A.208.160 (RCW 70A.208.130(3)(f)). Ecology may approve only a plan that meets that section (RCW 70A.208.130(4)). It must post the draft on its website and allow public comment first (RCW 70A.208.060(5)(a)).
The statute names no rate schedule, but a PRO must keep a public website that carries its draft and approved plan (RCW 70A.208.190(1)(d)). CAA's Producer Resource Center page said at this article's last verification date that fee schedules will depend on several factors. Those include, but are not limited to, state needs assessment findings, rulemaking decisions, the scope of each state's legislation, and approved program plans.
Which design choices does the statute list as fee factors?
Seven, all in RCW 70A.208.160(2)(c), and item (ii) has two parts. The fee must incentivize using materials and design attributes that reduce environmental and human health impacts of covered materials by:
- (i) eliminating intentionally added toxic substances or residual toxic substances from manufacturing in covered materials;
- (ii)(A) reducing the amount of packaging per individual covered material that is necessary to efficiently deliver a product without damage or spoilage and without reducing its ability to be recycled or composted;
- (ii)(B) reducing the amount of paper used to manufacture individual paper products;
- (iii) increasing the amount of covered materials managed in a reuse system;
- (iv) increasing the proportion of postconsumer material in covered materials;
- (v) enhancing the recyclability or compostability of a covered material;
- (vi) increasing the amounts of inputs derived from renewable and sustainable sources without reducing its ability to be recycled; and
- (vii) other means, as approved by the department.
The statute does not say how much any factor changes a fee, or that any design change lowers one. Do not treat a factor as a promise of a lower fee.
The plan must also describe how the PRO will foster improved design as identified in paragraph (c) and provide technical assistance to producers on design changes (RCW 70A.208.130(3)(i)(ii) and (o)(iii)). The circular economy article turns each factor into a question for your packaging supplier.
On the reuse rule in (e), section 020 defines "reuse" in subsection (41) but has no definition of "reuse system." The statute does not say how a producer shows that a material is managed through one, so ask the PRO before assuming a product qualifies.
Are fees based on weight or on units, and what should I record?
The statute fixes neither. Before an approved plan, the PRO may use any of the four market share bases in the table above or another equitable method (RCW 70A.208.160(1)). After approval, the fee must vary with the total amount introduced in the prior year "calculated on a per unit basis, such as per ton, per item, or another unit of measurement" (RCW 70A.208.160(2)(a)). Which unit applies is a question for the plan.
The amount is counted per unit, and costs are reflected for each covered materials type, with paper, plastic, metal and glass given as examples in section 020(14). So the record below keeps more than a single tonnage total. It is our own method, not a statutory requirement.
| Record for each product | Why |
|---|---|
| Each package component and its covered materials type | RCW 70A.208.160(2)(b) reflects program costs for each type |
| Weight of each component per unit | (2)(a) allows a per ton unit |
| Units you sold, offered, distributed or shipped within or into Washington in the prior year | (2)(a) counts the prior year on a per unit basis; "introduce" is defined in RCW 70A.208.020(22) |
| Postconsumer material, reuse system use and toxic substance information, with supplier documents | The (c) factors are written in these terms |
Common questions
What is eco-modulation?
It is the common name for fee rules that adjust a producer's fee for how its packaging or paper is designed. The word does not appear in chapter 70A.208 RCW. The rules are in RCW 70A.208.160(2)(c) and (d): the fee must incentivize listed design attributes and discourage materials and designs whose impacts those methods can reduce.
How are producer fees set under the RRA?
A registered PRO charges and collects them. Until it has an approved plan, RCW 70A.208.160(1) lets it charge by unit-, weight-, volume- or sales-based market share, or another equitable method. After approval, RCW 70A.208.160(2) requires an annual fee that meets six requirements. The statute sets no rate, and the plan must describe how fees are calculated.
Which design choices lower fees?
The statute does not say that any design choice lowers a fee, or by how much. It says the fee must incentivize seven kinds of change: eliminating toxic substances, reducing packaging or paper, reuse, postconsumer material, recyclability or compostability, renewable inputs, and other means the department approves (RCW 70A.208.160(2)(c)).
Are fees based on weight or on units?
The statute picks neither. Before an approved plan, a PRO may use unit-, weight-, volume- or sales-based market share. After approval, the fee must vary with the amount introduced in the prior year on a per unit basis, such as per ton, per item, or another unit of measurement (RCW 70A.208.160(2)(a)).
When do producers start paying fees?
Neither RCW 70A.208.160 nor RCW 70A.208.040(1)(c) gives a date for a first payment. Subsection 040(1)(c) requires a producer to maintain membership with and pay fees to its PRO, and RCW 70A.208.160(2) applies once a plan is approved. The deadlines article has the dates. CAA's Washington page said at this article's last verification date that it will establish an early fee structure for initial (pre-program) producer fees.
What to do next
- Confirm you are a producer. Start with the coverage checklist and the materials covered article.
- Build the product record above. One line per package component, with the prior year's units.
- Collect supplier documents. Ask for postconsumer material, toxic substance and reuse data per component.
- Ask your PRO where its fee information is published. Ecology's PRO page calls CAA the first point of contact for producer reporting guidance.
- Read the draft plan when posted. Check its fee section against RCW 70A.208.160(2) and RCW 70A.208.130(3)(f). Look on your PRO's public website and, during public comment, on Ecology's (RCW 70A.208.190(1)(d) and RCW 70A.208.060(2)(v)).
- Keep fee figures out of your budget until the PRO gives you one. The statute sets none.
I am a Distinguished Committee Member of the SWANA Sustainable Materials Management Technical Division and a juror for the NYSAR3 Recycling Leadership Awards, both since 2023.
The Washington EPR Compliance Assessment matches your packaging specification sheets to the RCW 70A.208.160(2) factors and drafts the questions to put to your PRO.
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General information, not legal advice.