Urban legend says that photocopying your passport, as an official government document, is illegal -- yet the government recommends that you make one or more copies of your passport in certain situations. Having a copy of your passport when you travel abroad is helpful if you lose the document.
That is from traveltips/usatoday
..and...the US Government site travel.state.gov RECOMMENDS that you make a copy of your passport. Nothing said about size or color limitations