Cal. PRC § 42968.32 — California Code / Code prc / Division 30 / Part 3 / Chapter 19.5 / Article 3 / Section 42968.32
Section 42968.32
Status: in_force

A producer responsibility plan for covered products shall do all of the following:

(a) Be designed to accept and manage all postconsumer covered products.

(b) Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producer’s email address, phone number, and mailing and physical address.

(c) Explain the producer responsibility organization’s funding methods, and explain how those methods will fully fund the producer responsibility organization in a manner that equitably distributes the producer responsibility organization’s costs among the producers pursuant to subdivision (a) of Section 42968.23.

(d) (1) Include the fee required by Section 42968.51 and a description of how it is calculated.

(2) Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.

(e) Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.

(1) 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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organization’s producer responsibility plan, except the department’s costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.

(2) The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organization’s producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).

(f) Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility plan to meet the performance standards published by the department. Performance standards published by the department pursuant to this subdivision shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). Performance standards may include, but are not limited to, collection, reduction in disposal, and maximizing recycling.

(g) (1) Describe how the producer responsibility organization will provide free dropoff and convenient collection system for covered products, which shall include approved collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.

(2) The department may by regulation adjust the minimum number of required approved collection sites described in paragraph (1) to ensure that consumers have sufficient convenient access to approved collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of approved collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that county’s solid waste and recyclables.

(h) Describe how approved collection sites will be authorized and managed, including all of the following:

(1) The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the approved collection sites to an authorized recycling facility.

(2) How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.

(3) How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.

(4) A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.

(5) How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.

(6) How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.

(7) The process by which covered products will be managed following collection at approved collection sites, including:

(A) How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.

(B) How the producer responsibility organization will maximize the recycling of covered products.

(C) How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.

(8) A description of the producer responsibility organization’s annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.

(9) How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.

(10) How approved collection sites will be operated to ensure that covered products are collected at no cost, safely, and handled in accordance with all applicable state and federal laws.

(i) (1) Describe the statewide education and outreach program’s efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:

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

(B) Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery, or both.

(C) Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.

(D) An internet website that publicizes the location of approved collection sites and provides information on how to drop off covered products at the free and convenient network of approved collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.

(E) All signage and materials required for approved collection sites by the producer responsibility organization, and a description of the method by which approved collection sites can access replacement materials at no cost to the approved collection site.

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

(G) A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.

(2) The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.

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

(4) The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.

(j) Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organization’s operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.

(k) Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.

(l) (1) Prioritize expenditure of assessments collected pursuant to Section 42972 on activities to carry out the producer responsibility plan in California.

(2) Consistent with paragraph (4) of subdivision (a) of Section 42972, commencing with the fiscal year beginning July 1, 2025, and for each fiscal year thereafter, the program shall allocate 8 percent of assessments collected pursuant to Section 42972, as determined by the department, for grants to apprenticeship programs, subject to the requirements and conditions of this section. Any portion of the 8 percent that is not awarded and used in a fiscal year shall be credited to the amount to be allocated or awarded in the following fiscal year pursuant to this section, thereby reducing the amount allocated or awarded in the following fiscal year by the amount of the credit.

(3) An apprenticeship program shall apply to the producer responsibility organization for a grant. The apprenticeship program shall submit a report to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.

(m) Provide for the payment to an approved collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the approved collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).

(n) Explain how producers will, on and after January 1, 2027, through the use of a standardized stamping or some other means, provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, by 2027.

(o) Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.

(p) Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.