California Code of Regulations › Title 14 - Natural Resources › Division 7 - Department of Resources Recycling and Recovery › Chapter 11 - Product Stewardship › Article 2 - Architectural Paint Recovery Program › Section 18954 - Annual Report Compliance Criteria

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The annual report must contain the
				  following:
(1) Contact information. Identify
				  the manufacturer or stewardship organization responsible for the annual report
				  submittal. Stewardship organizations shall include an updated list of
				  participating manufacturers and any updates to their respective contact
				  information per §
											18952(a)(2).
(2) Executive Summary. The purpose of the
				  Executive Summary is to provide a broad understanding of the manufacturer or
				  stewardship organization's program as a whole and to put into context the data
				  and information that will follow. Provide a brief description of the
				  manufacturer or stewardship organization's architectural paint recovery efforts
				  during the reporting period pursuant to PRC §
											48705(a).
				  This may include anticipated steps, if needed, to improve performance and a
				  description of challenges encountered during the reporting period and how they
				  will be addressed. This may also include a description of paint container
				  management and market development activities if the manufacturer or stewardship
				  organization has chosen to engage in those activities.
(3) Program Outline. Describe the paint
				  stewardship program, including information on the following topics:
(A) A description of the methods used to
				  collect, transport, and process postconsumer architectural paint, by type, in
				  California.
(B) Description of how
				  each consumer of architectural paint in California had an opportunity to
				  recycle and properly manage their postconsumer paint on a state wide basis,
				  including the number, location, and type of collection points located in the
				  state.
(C) Description of best
				  management practices followed by service providers that are acting as
				  collection points, which may include any training that the manufacturer or
				  stewardship organization provided or required of service providers to ensure
				  proper collection and management of postconsumer paint.
(D) A statement that the manufacturer or
				  stewardship organization coordinated with existing household hazardous waste
				  collection programs and retailers as potential collection points per §
												18953(a)(3)(E) and
				  (F) during the reporting
				  period.
(4) Description
				  of goals and activities based on the stewardship plan. State goals from the
				  approved stewardship plan, the baseline from which goals were measured, and
				  report on achievement during the reporting period. Describe any adjustments to
				  goals stated in the approved stewardship plan that may be made for the upcoming
				  reporting period and accompanying rationale for those changes. The annual
				  report must include quantitative information and discussion on the following
				  categories pursuant to PRC §
											48705(a)
				  and PRC §
											48703(d):
(A) The total volume of architectural paint
				  sold, by type, in the state during the preceding reporting period.
(B) The total volume of postconsumer
				  architectural paint recovered, by type, in the state during the preceding
				  reporting period.
(C) Disposition
				  of postconsumer paint collected, by type and by estimated volume, including
				  name(s) and corporate address(es) for contracted processors for
				  each
(5) Financing
				  Mechanism. The annual report shall include the total cost of implementing the
				  architectural paint stewardship program and an evaluation of how the program's
				  funding mechanism operated, including whether or not the funding was sufficient
				  to recover, but not exceed, the administrative, operational, and capital costs
				  of the manufacturer or stewardship organization's program. Include a statement
				  that any surplus funds are put back into the program to reduce the costs of the
				  program, including the assessment amount. Any proposed change in the amount of
				  the architectural paint stewardship assessment must be submitted to the
				  department for re-approval (see §
											18952. Submittals). If a
				  manufacturer or stewardship organization conducts activities that are separate
				  from the implementation and management of the California paint stewardship
				  program, then the annual report shall include documentation on how the
				  collection and expenditure of assessment funds shall be kept separate from
				  other activities of the manufacturer or stewardship organization and the
				  methodology for distribution of shared costs. Consistent with PRC §
											48705(a)(5),
				  the annual report shall include the following:
(A) Assessment amount per container
(B) Total program cost
(C) Capital costs
(D) Cost($)/capita
(E) Cost ($)/gallon collected
(F) Education/Outreach (% of total program
				  cost)
(G) End-of-life materials
				  management (% of total program cost, with line items for reuse, transportation,
				  recycling, fuel incineration, and proper disposal)
(H) Program administration (% of total
				  program cost, including annual administrative fee for service payments to the
				  department)
(I) Surplus funding, if
				  any, and how it will be applied to reduce program costs
(6) Education and Outreach. Describe
				  educational and outreach activities in context of those identified in the
				  stewardship plan. Provide a description of educational materials that were
				  provided to retailers, consumers, and contractors during the reporting period
				  and provide electronic examples of these materials. Identify any method(s) used
				  to determine the effectiveness of educational and outreach efforts (e.g.,
				  surveys, hits on specific web pages, number of participants at events, etc.),
				  if applicable. These education and outreach materials may include, but are not
				  limited to, any of the following per PRC §
											48703(e):
(A) Signage that is prominently displayed and
				  easily visible to the consumer.
(B)
				  Written materials and templates of materials for reproduction by retailers to
				  be provided to contractors and consumers at the time of purchase or delivery or
				  both.
(C) Promotional materials or
				  activities, or both, that explains the purpose of paint stewardship and the
				  means by which it is being carried out.
(D) Links to website(s) created and
				  maintained by the stewardship organization.
(7) Audits. The annual report shall include
				  an independent financial audit of the California Architectural Paint Recovery
				  Program funded from the paint stewardship assessment. The audit shall be
				  conducted in accordance with auditing standards generally accepted in the
				  United States of America, and standards set forth in Government Auditing
				  Standards issued by the Comptroller General of the United States. The financial
				  audit submitted to the department shall be prepared by an Independent Certified
				  Public Accountant (CPA). The CPA shall not perform non-audit services for the
				  manufacturer or stewardship organization that would impair independence as
				  defined in the Government Auditing Standards issued by the Comptroller General
				  of the United States (e.g., accounting services, development of internal
				  controls, management decisions). The independent financial audit shall include:
(A) California Architectural Paint Recovery
				  Program financial statements, as required by GAAP.
(B) An opinion on the manufacturer or
				  stewardship organization's compliance with the financial aspects of PRC §
												48700
				  and Title 14, Division 7, Chapter 11, Article 2 of the California Code of
				  Regulations.
(C) Findings and
				  recommendations as they relate to the financial aspects of the Architectural
				  Paint Recovery Program.
(D)
				  Management Letter, if issued, by the manufacturer or stewardship organization's
				  CPA.