Senate adopts first-in-nation framework for EV battery recycling and critical-mineral recovery

The Colorado Senate unanimously adopted Senate Bill 3 on May 1 after committee work and a technical amendment clarifying assessment of battery health in hybrid vehicles. Sponsors described a months-long stakeholder process that included automakers, recyclers, environmental advocates and local dismantlers.

Senator Wallace, speaking for the sponsors, said the statute establishes critical-mineral recovery targets and a manufacturer-funded stewardship program intended to keep batteries and valuable materials in a circular economy. "By deploying a first-in-the-nation policy framework that requires vehicle manufacturers to collect unwanted batteries, we will support manufacturers, local dismantlers, and the state," Wallace said.

Senator Cutter and other backers emphasized reduced fire hazard risk from improperly stored batteries and the need for dedicated funding so local fire protection districts are not exposed to new, unmanaged risks. In committee the Appropriations panel approved a strike-below that lowered fees and reduced state costs; on the floor amendment L005 (clarifying onboard diagnostic options for hybrid vehicles) was adopted.

The bill passed and was ordered engrossed for third reading. Supporters said the program design balances administrative costs, proportional manufacturer fees, and environmental benefits; details on rulemaking and fee schedules will be finalized through the administrative process.

Next steps: The measure proceeds to enrollment and any implementing rulemaking by relevant state agencies will follow.