Cal. PRC § 42984.10 — California Code / Code prc / Division 30 / Part 3 / Chapter 20.5 / Article 4 / Section 42984.10
Section 42984.10
Status: in_force

A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:

(a) The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.

(b) (1) A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PRO’s costs among the producers that are part of the stewardship organization using a per unit eco-modulated fee that reflects California sales volumes, existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter, and the cost of reusing, repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.

(2) A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.

(3) Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.

(4) The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.

(5) Administrative costs shall include the department’s actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PRO’s plan, except the department’s costs shall include actual regulatory development costs and other startup costs incurred prior to plan submittal and approval.

(c) Quantifiable five-year and annual performance standards and metrics unless or until the department publishes performance standards pursuant to Section 42984.19. The PRO shall amend its plan to meet or exceed the performance standards published by the department.

(d) A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:

(1) Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater, except as provided below:

(A) A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection locations.

(B) A county with a population of between 18,001 and 50,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of four collection locations.

(C) A county with a population between 50,001 and 100,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of eight collection locations.

(2) Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.

(e) A description of how collection sites will be authorized and managed, including all of the following:

(1) A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.

(2) A description of how the PRO will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.

(3) An explanation of the process by which the PRO will provide for the transport of covered products at no cost from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.

(4) A description of how collection sites will be allowed to divert collected covered products to secondhand markets for reuse. Any diversion by collection sites pursuant to this paragraph shall be consistent with the rules established pursuant to paragraph (5).

(5) A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.

(6) A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).

(7) How collection sites will be instructed to identify and reject counterfeit covered products.

(f) (1) A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:

(2) A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:

(A) (i) How the plan will prioritize the reuse, including repair, of collected covered products.

(ii) Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic snaps, zippers, grommets, closures, or appliqués may be excluded from repair and reuse by the PRO.

(B) (i) How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.

(ii) A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked through final disposition.

(iii) A description of how the PRO will maximize the reuse and recycling of all covered products.

(iv) A description of how the PRO will minimize disposal of covered products collected by the PRO.

(v) A description of how the PRO will prioritize, to the extent feasible, the use and development of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.

(vi) A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.

(vii) A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation pursuant to clause (v).

(viii) A description of how the actions taken pursuant to clause (vii) will ensure that covered products are reused or recycled and have responsible and economically viable end markets.

(g) A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:

(1) A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.

(2) A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.

(3) Signage that is prominently displayed and easily visible.

(4) All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.

(5) A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.

(6) Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.

(7) A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.

(8) Materials designed to inform third-party sellers on online platforms of their duty to comply with the law and how to join the PRO.

(9) Information to the public on secondhand markets and the benefits of reuse, including repair.

(10) (A) The statewide education and outreach program shall promote the safe and proper management of covered products, including information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.

(B) The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.

(C) The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.

(h) A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program.

(i) A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.

(j) Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the PRO:

(1) Other PROs.

(2) Existing collection, reuse, and recycling programs.

(3) Community-based organizations, including nonprofit thrift stores as described in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.

(k) A contingency plan in the event the plan expires or is revoked. The contingency plan shall guarantee that the contracts, financial data, and other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PRO’s operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.

(l) Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.

(m) A description of how the plan will address the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions and investments needed to avoid contamination in the recycling process and available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.

(n) Develop strategies to address design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.

(o) A description of how the PRO will minimize the negative environmental and human health impacts of all operations associated with the plan, including impacts from collected covered products exported outside of California.

(p) A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).