Article 3 - Program Administration

California Public Resources Code — §§ 42060-42067

Sections (10)

§ 42060

Amended by Stats. 2023, Ch. 131, Sec. 187. (AB 1754) Effective January 1, 2024.

(a)By January 1, 2025, the department shall adopt regulations necessary to implement and enforce this chapter and to ensure that the requirements of this chapter and in particular the requirements established in Section 42050 and the policy goal established in Section 41780.01 as it relates to covered material are met. The regulations shall include, but not be limited to, all of the following:

(1)Any regulations necessary to ensure the PRO fully funds plan implementation, including fully funding the budget. This shall include the costs incurred by a local jurisdiction or a local jurisdiction’s recycling service providers to implement this chapter, including, but not limited to, the cost of consumer education and of collection, including the cost of containers

where relevant, as well as the processing, storage, and transportation of covered materials. Costs may vary based on population density or other relevant factors and shall allow local jurisdictions to protect ratepayers from increased costs associated with the processing and marketing of covered material.

(2)(A) Establish a mandatory process for producers, retailers, and wholesalers, or a PRO operating on behalf of a producer, retailer, or wholesaler, to register with and report to the department.

(B)The process shall include establishing appropriate timelines to begin regular reporting following the adoption of the regulations. The department shall consider, along with any other factors the department deems appropriate, the amount of information being reported in developing the timelines.

(C)(i) Data requests by the department shall be consistent with the covered material categories established and posted on the department’s internet website pursuant to subdivision (a) of Section 42061.

(ii) To the maximum extent feasible, the department shall seek to use records and information that the local jurisdiction, producer, retailer, wholesaler, or PRO already maintains, in order to minimize the burden imposed by the reporting and recordkeeping requirements while still enabling the department to determine compliance with this chapter.

(D)The department shall, to the extent feasible, make the reporting consistent with other recognized third-party reporting systems used by producers or other packaging extended producer responsibility programs.

(E)Market-sensitive trade

secret data received by the department pursuant to this chapter shall be held confidentially by the department as required by Section 40062 and any implementing regulations, provided that the furnisher of the data complies with the requirements set forth in subdivision (b) of Section 40062 and any implementing regulations for identifying the information claimed to be a trade secret.

(F)The department shall create an online registration form to facilitate submitting reports pursuant to this subdivision. To the extent permissible under applicable law, the department may contract with an independent third-party online reporting system with recognized standards for waste characterization, source reduction, and recycling.

(3)(A) The department shall establish a process to identify covered material that, while determined to be single use for purposes of this

chapter, presents unique challenges in complying with this chapter. The department may exempt covered material identified pursuant to this subparagraph from this chapter.

(B)For any covered material identified as presenting unique challenges and exempted from this chapter under subparagraph (A), the department may at any point develop a plan to phase the covered material into the requirements of this chapter.

(4)The department shall establish a process to identify covered material that cannot comply with this chapter for health and safety reasons, or because it is unsafe to recycle. The department may exempt that covered material from this chapter.

(5)The department shall establish a process to exempt from the requirements of this chapter, except for the requirements of subdivision (b) of Section 42050, small

producers, small retailers, and small wholesalers based on size, revenue, number of retail locations, and market share, as follows:

(A)Subject to subparagraph (B), the department shall exempt producers, retailers, or wholesalers that, in the most recent calendar year, had gross sales of less than one million dollars ($1,000,000) in the state.

(B)If the department determines that exempting a particular small producer, small retailer, or small wholesaler pursuant to subparagraph (A) would hinder the ability of a type of covered material or covered material category from complying with the requirements of this chapter, the department may determine that the particular small producer, small retailer, or small wholesaler will not be exempted from the requirements of this chapter.

(6)(A) The

department shall include mechanisms necessary to reduce the amount of covered material entering the environment, in accordance with the regulations adopted pursuant to this section.

(B)The department may consider reductions of covered material achieved by a producer before the effective date of the regulations toward a producer’s compliance with this chapter if the producer can demonstrate to the satisfaction of the department that the producer reduced the covered material in a manner consistent with this chapter and actions taken to comply with Chapter 5.5 (commencing with Section 42300).

(C)In calculating the reductions necessary to achieve the requirements adopted pursuant to subdivision (a), the department shall consider source reduction achieved pursuant to Section 42057.

(7)The department shall establish a

process to require coordination between a PRO and producer that is not a participant of the PRO’s approved plan and between multiple PROs as necessary. This includes determining how much each PRO shall charge producers of plastic covered material in order to prorate the funding as necessary to raise the revenue required by Section 42064.

(8)The department shall establish a methodology and process to calculate, to the extent feasible, an annual recycling rate defined in subdivision (ab) of Section 42041.

(b)(1) The department shall ensure that any regulations adopted pursuant to this chapter consider guidelines and do not conflict with regulations issued by the United States Food and Drug Administration and the United States Department of Agriculture and consider requirements imposed by other California state agencies.

(2)Neither the department nor the PRO shall impose any requirement, including, but not limited to, a recycled content requirement, in direct conflict with a federal law or regulation, including, but not limited to, laws or regulations covering tamper-evident packaging pursuant to Section 211.132 of Title 21 of the Code of Federal Regulations, laws or regulations covering child-resistant packaging pursuant to Part 1700 (commencing with Section 1700.1) of Subchapter E of Chapter II of Title 16 of the Code of Federal Regulations, regulations, rules, or guidelines issued by the United States Department of Agriculture or the United States Food and Drug Administration relevant to packaging agricultural commodities, requirements for microbial contamination, structural integrity, or safety of packaging under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.), 21 U.S.C. Sec. 2101 et seq., the federal FDA Food Safety Modernization Act

(Public Law 111-353), the federal Poultry Products Inspection Act (21 U.S.C. Sec. 451 et seq.), the Federal Meat Inspection Act (21 U.S.C. Sec. 601 et seq.), or the federal Egg Products Inspection Act (21 U.S.C. Sec. 1031 et seq.). Neither the department nor a PRO shall impose a postconsumer recycled content requirement for covered material for fresh produce.

(c)In developing the regulations, the department shall consider relevant information on reduction programs and approaches in other states, localities, and nations, including, but not limited to, the European Union, India, Costa Rica, China, Chile, and Canada, and international standards, including, but not limited to, ISO 18602.

(d)In adopting regulations pursuant to this section, the department shall ensure the regulations, and activities conducted in accordance with the regulations, avoid or minimize disproportionate

impacts to disadvantaged or low-income communities or rural areas.

§ 42060.5

Amended by Stats. 2023, Ch. 131, Sec. 188. (AB 1754) Effective January 1, 2024.

(a)Except as provided in subdivisions (b), (c), (d), and (e), all local jurisdictions or recycling service providers shall include in their collection and recycling programs all covered material contained on the lists published pursuant to subdivisions (c) and (d) of Section 42061. This section does not authorize the department to require mandatory route collection service where it does not already exist. This section shall not limit a local jurisdiction from collecting additional materials for recycling or composting.

(b)The department shall grant an extension of, or exemption from, a requirement of subdivision (a) upon a written showing by the local jurisdiction or recycling service provider that compliance with the requirement is not practicable for a

specific identified covered material because of specific local conditions, circumstances, or challenges. If the PRO objects to the extension or exemption, the PRO shall be responsible for arranging alternative means for the collection, processing, storage, and transportation of covered materials resulting from implementing this chapter. The department shall review a granted extension or exemption every two years, and may renew the extension or exemption after that review. An exemption or extension for a local jurisdiction or recycling service provider does not in any way relieve a producer or PRO from meeting the requirements of this chapter.

(c)A county board of supervisors of a rural county or a rural jurisdiction, as those terms are defined in Section 42649.8, may adopt a resolution to exempt the rural county or rural jurisdiction from the requirements of this section. If a rural jurisdiction is a regional agency composed of jurisdictions

that are located entirely within one or more rural counties, the board of the regional agency may adopt a resolution, as prescribed in this subdivision, to exempt the rural jurisdiction from the requirements of this section. An exemption for a rural county or a rural jurisdiction does not in any way relieve a producer or PRO from meeting the requirements of this chapter.

(d)A local jurisdiction or recycling service provider shall not be required to collect material for recycling or composting on the lists published pursuant to subdivisions (c) and (d) of Section 42061 that does not meet the criteria described in subdivision (l) of Section 42051.1 and is collected and recycled or composted by means other than curbside collection in a producer responsibility plan.

(e)A local jurisdiction shall not be required to collect a material category that is subject to an ordinance

passed by the local jurisdiction prohibiting the sale or distribution of that covered material in the local jurisdiction before the publication of the lists of recyclable or compostable material pursuant to subdivisions (c) and (d) of Section 42061.

§ 42061

Amended by Stats. 2023, Ch. 848, Sec. 8. (AB 1526) Effective January 1, 2024.

The department shall do all of the following:

(a)(1) By July 1, 2024, the department shall establish and post on its internet website a list of covered material categories. The department may consider material types and forms referenced in waste characterization studies or material characterization studies for determining the categories.

(2)The department shall conduct and publish on its internet website a characterization study of covered material categories that are disposed of in California landfills. The department’s activities pursuant to this paragraph, including the department’s determination of the appropriate facilities to include in the study, are exempt from Chapter 3.5 (commencing with

Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(3)(A) For the department’s first material characterization study conducted pursuant to paragraph (2), which the department shall complete on or before July 1, 2025, the department shall conduct disposal-based characterization studies to determine the approximate amount of covered material disposed of in California landfills.

(B)The department shall, on or before January 1, 2024, report to the Legislature in compliance with Section 9795 of the Government Code on the status of material types relative to the requirements in subparagraphs (A) and (B) of paragraph (2) of subdivision (d) of Section 42355.51. When updating information pursuant to clause (ii) of subparagraph (B) of paragraph (1) of subdivision (d) of Section 42355.51, the department may identify materials that are trending

toward meeting the requirements in subparagraphs (A) and (B) of paragraph (2) of subdivision (d) of Section 42355.51 and measurable increase of statewide collection and sorting rates through either statewide recycling programs or alternative programs, such as take-back systems, and for which the continued increase in the collection, sorting, and viable responsible end market development the department determines will be disrupted by a loss of a recyclable designation. Those material types and forms shall be considered recyclable in the state and may be labeled as recyclable, notwithstanding subparagraphs (A) and (B) of paragraph (2) of subdivision (d) of Section 42355.51, so long as the material types and forms satisfy subparagraphs (A) to (D), inclusive, of paragraph (3) of subdivision (d) of Section 42355.51 and until the material types and forms are a part of, and in compliance with, a program described in paragraph (6) of subdivision (d) of Section 42355.51.

(4)The department shall update the material characterization study required pursuant to this subdivision in 2028, 2030, 2032, and at least every four years thereafter.

(5)Notwithstanding paragraphs (2) and (3), the department may publish additional information that was not available at the time of the most recent periodic material characterization study regarding the appropriate characterization of material types and forms.

(6)For purposes of studying a representative sample of material types and forms in the state, within 90 calendar days of a department request, a transfer, processing, or recycling facility shall allow for periodic sampling conducted by a designated representative of the department on a mutually agreed upon date and time. The department shall not require a periodic sampling of a transfer, processing,

or recycling facility if that facility was sampled during the previous 24 months.

(7)For each material characterization study conducted pursuant to this subdivision, the department shall publish on its internet website the preliminary findings of the study and conduct a public meeting to present the preliminary findings and receive public comments. The public meeting shall occur at least 30 calendar days after the department publishes the preliminary findings. After receiving and considering public comments, and within 60 calendar days of the public meeting, the department shall finalize and publish on its internet website the findings of the study.

(b)(1) By January 1, 2026, the department shall calculate and publish on its internet website the current recycling rates being achieved in the state for each covered material category. These recycling rates

shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the Office of Administrative Law, at the request of the department, pursuant to Section 11343.8 of the Government Code.

(2)In determining a recycling rate, the department may consider data gathered pursuant to any of the following, including any amendments thereto:

(A)Chapter 746 of the Statutes of 2015.

(B)Chapter 6 (commencing with Section 42370).

(C)Chapter 395 of the Statutes of 2016.

(D)Chapter 5.5 (commencing with Section 42300).

(E)Division 12.1 (commencing with Section 14500).

(F)Chapter 5.7. (commencing with Section 42355).

(G)Data voluntarily provided by local jurisdictions.

(H)Data and information received from producers.

(I)Any other relevant data and information received by the department.

(c)By January 1, 2024, the department shall publish on its internet website a list of covered material categories that are, based on available collection and processing infrastructure and recycling markets, deemed recyclable as of January 1, 2024. Covered material is deemed recyclable if it meets the requirements of Section 17989.2 of Title 14 of the California Code of Regulations, as that section existed on January 1, 2023, and Section 42355.51. The list shall include

covered material categories identified by the department and considered recyclable pursuant to subdivision (d) of Section 42355.51.

(d)By January 1, 2024, the department shall create and post on its internet website a list of covered material categories that are deemed compostable as of January 1, 2024. Covered material is deemed compostable if it meets the requirements to be labeled as compostable pursuant to Chapter 5.7 (commencing with Section 42355).

(e)The department shall determine a process for updating the lists created pursuant to subdivisions (c) and (d) to either add covered material categories that are deemed to meet all of the criteria in either subdivision (c) or (d) or remove covered material categories if they can no longer be deemed recyclable or compostable pursuant to subdivision (c) or (d). As part of the process, the department shall

update the list at least annually until January 1, 2032. After January 1, 2032, the department shall regularly, but no less than once every two years, evaluate the list to determine if it is still accurate and update it as needed. Covered material categories deemed to be recyclable or compostable as of January 1, 2032, and listed pursuant to subdivision (c) or (d) shall be deemed to be compliant with subdivision (b) of Section 42050 until and unless the department determines that the covered material category no longer meets the requirements of subdivision (c) or (d).

(f)(1) The department shall determine a process for updating the rates published pursuant to subdivision (b). The department shall update the list at least every two years and shall regularly, but no less than once every two years, evaluate the list of rates to determine whether the rates are still accurate. After evaluation, the department may amend the

list to remove, add, or change rates. The department shall post any updates to the list on its internet website.

(2)A producer may demonstrate compliance with the rates in subdivision (c) of Section 42050 by submitting to the department evidence that the particular type of covered material meets the applicable recycling rate by reference to a recycling rate on the department’s list or through another mechanism approved by the department.

(3)A producer that seeks to have a rate included or changed on the list, or a covered material category added to the list, may be required by the department to submit data for purposes of the department’s determination of the rate to include on the list or the appropriateness of adding the category.

(4)Publication of and updates made to the list pursuant to this subdivision are

exempt from Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

§ 42061.5

Added by Stats. 2022, Ch. 75, Sec. 2. (SB 54) Effective January 1, 2023.

(a)The department shall approve a PRO that meets the requirements of this chapter and both of the following:

(1)The PRO has a governing board consisting of producers that represent the diversity of covered material placed in the market by those entities. The governing board shall include nonvoting members with representation of material trade associations and companies if those material types are covered by the organization.

(2)The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.

(b)After January 1, 2031, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:

(1)The proposed PRO submits to the department, and agrees to cover the department’s costs to review, a petition to establish a new PRO.

(2)The proposed PRO is composed of a sufficient number of producers of a specific covered material or covered material category to jointly comply with the requirements of this chapter.

(3)The proposed PRO for a specific covered material or covered material category agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant

producers.

(4)Producers covered by the proposed PRO for the specific covered material or covered material category agree to cover the prorated funding share associated with environmental mitigation funding under Section 42064, as determined by the department, based on the original PRO’s established cost distribution.

(c)In the event that the department determines that a PRO no longer meets the requirements of this chapter, including those set forth in subdivision (a), or fails to implement and administer an approved PRO plan in a manner that effectuates the purposes of this chapter, the department shall revoke its approval of the PRO and, notwithstanding subdivision (b), may approve additional PROs pursuant to subdivision (a).

§ 42062

Added by Stats. 2022, Ch. 75, Sec. 2. (SB 54) Effective January 1, 2023.

(a)Commencing in the 2026 calendar year, and every two years thereafter, the department shall review, in consultation with the advisory board, relevant data to assess whether the recycling rate established in subdivision (c) of Section 42050 should be adjusted. The department shall make its determination and rationale available for public review.

(b)If the department determines pursuant to a review under subdivision (a) that current unforeseen and anomalous market conditions, including, but not limited to, recycling infrastructure conditions, warrant an adjustment to the recycling rates established in subdivision (c) of Section 42050, the department may impose a higher or lower rate for a covered material category subject to both of the

following conditions:

(1)The rate shall not be adjusted by more than 10 percent of the plastic covered material manufactured for sale, distribution, or import in or into the state for that covered material category.

(2)A decreased rate shall be in effect for no more than two years, at which point the rate shall revert to the applicable rate established in subdivision (c) of Section 42050. For an increased rate, the department may determine after each two-year period whether to maintain the increased rate or reduce the increased rate partially or entirely down to the applicable rate established in subdivision (c) of Section 42050.

(c)The department shall determine and post on its internet website whether each covered material category recycling rate complies with the rates required pursuant to subdivision (c) of

Section 42050 or this section.

§ 42063

Added by Stats. 2022, Ch. 75, Sec. 2. (SB 54) Effective January 1, 2023.

(a)In accordance with Sections 42051.2 and 42051.3, the department shall review a plan, plan amendment, or annual report submitted by a PRO for compliance with this chapter and shall approve, conditionally approve, or reject the document within 90 calendar days of receipt of the document, or notify the PRO of the timeline for determination if additional time is needed.

(b)(1) If the department disapproves a plan, plan amendment, or annual report, the department shall explain, in writing, how the plan, plan amendment, or annual report is noncompliant, and the PRO shall resubmit the plan, plan amendment, or annual report with any additional information, modifications, or corrections to the department within 30 calendar

days.

(2)If the department finds that the plan, plan amendment, or annual report resubmitted by the PRO still does not comply with the requirements of this section, the department shall direct changes to the document and require the PRO to resubmit the plan, plan amendment, or annual report to the department within 30 calendar days.

(3)If the department determines the PRO has not incorporated the changes into the plan, plan amendment, or annual report, the department shall determine the PRO to be out of compliance with this chapter and shall take enforcement action pursuant to Article 5 (commencing with Section 42080).

(4)If a PRO’s updated plan, plan amendment, or annual report is rejected by the department, the department may allow the previously approved plan to remain in effect.

(c)An approved annual report and approved plan shall be a public record, except that financial, production, or sales data reported to the department by the PRO is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department shall release financial, production, or sales data in summary form so the information cannot be attributable to a specific producer, retailer, or wholesaler, or to any other entity.

§ 42064

Amended by Stats. 2023, Ch. 848, Sec. 9. (AB 1526) Effective January 1, 2024. Repealed as of January 1, 2037, by its own provisions.

(a)(1) The environmental mitigation surcharge imposed by this section shall be collected annually by the California Department of Tax and Fee Administration in accordance with the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code). For purposes of this chapter, the references in the Fee Collection Procedures Law to “fee” shall include the environmental mitigation surcharge imposed by this section, and references to “feepayer” shall include a person required to pay the environmental mitigation surcharge imposed by this section.

(2)Notwithstanding the appeal provisions in the Fee Collection Procedures Law, a determination by the department that a person is required to pay an

environmental mitigation surcharge, or a determination by the department regarding the amount of that environmental mitigation surcharge, is subject to review under Section 42064.01 and is not subject to a petition for redetermination by the California Department of Tax and Fee Administration.

(3)Notwithstanding the refund provisions in the Fee Collection Procedures Law, the California Department of Tax and Fee Administration shall not accept any claim for refund that is based on the assertion that a determination by the department improperly or erroneously calculated the amount of the environmental mitigation surcharge, or incorrectly determined that the person or entity is subject to the environmental mitigation surcharge, unless that determination has been set aside by the department or a court reviewing the determination of the department.

(4)This section shall not prevent,

and shall not be construed to prevent, the California Department of Tax and Fee Administration from accepting a claim for refund for an environmental mitigation surcharge or taking action on its own to correct a mistake or clerical error regarding an environmental mitigation surcharge.

(b)The annual environmental mitigation surcharge shall be due and payable 30 days from the date of assessment by the California Department of Tax and Fee Administration. Notwithstanding Article 1.1 (commencing with Section 55050) of Chapter 3 of Part 30 of Division 2 of the Revenue and Taxation Code, the environmental mitigation surcharge shall be remitted by electronic funds transfer to the California Department of Tax and Fee Administration.

(c)(1) On or before March 1, 2027, and each March 1 thereafter, the department shall annually transmit to the California Department of

Tax and Fee Administration the appropriate name and address of each person who is liable for the environmental mitigation surcharge under this section and the amount of the environmental mitigation surcharge to be assessed, and at the same time shall provide to the California Department of Tax and Fee Administration a contact number for the department to be printed on the notice of determination to respond to questions about the environmental mitigation surcharge.

(2)The California Department of Tax and Fee Administration shall mail the notice of determination to each person identified by the department pursuant to paragraph (1) on or before 90 days after receipt of the information required by paragraph (1).

(d)The California Plastic Pollution Mitigation Fund is hereby established in the State Treasury. The California Plastic Pollution Mitigation Fund shall consist of all

environmental mitigation surcharges, interest, penalties, and other amounts collected and paid to the California Department of Tax and Fee Administration pursuant to this section, less payments of refunds and reimbursements to the California Department of Tax and Fee Administration for expenses incurred in the administration and collection of the environmental mitigation surcharges imposed by this section.

(e)(1) Commencing in the 2027 calendar year, and annually thereafter, a PRO shall pay an environmental mitigation surcharge of five hundred million dollars ($500,000,000) each year, as assessed by the California Department of Tax and Fee Administration, and remit that amount to the California Department of Tax and Fee Administration each year to be deposited into the California Plastic Pollution Mitigation Fund.

(2)(A) The PRO may

collect up to one hundred fifty million dollars ($150,000,000) from plastic resin manufacturers who sell plastic covered material to producers who are participants of the PRO.

(B)The PRO may require its participants to provide to the PRO a list of plastic resin manufacturers who sell plastic for use in covered material to the participants.

(C)If the PRO does not collect all or any of the one hundred fifty million dollars ($150,000,000) from plastic resin manufacturers, the PRO is still responsible for the total remittance specified in paragraph (2).

(f)The PRO shall establish and impose on its participants who produce plastic covered material subject to Section 42057 an environmental mitigation surcharge in the amount necessary to remit the moneys pursuant to subdivision (a) based on each producer’s market share

of plastic covered material, accounting for both number of plastic components and weight.

(g)Moneys in the California Plastic Pollution Mitigation Fund shall not be expended for obligations imposed on any party by any law other than this section or to cover costs identified in a needs assessment.

(h)(1) For producers that are not participants of a PRO’s approved plan, the department shall determine the amount of the environmental mitigation surcharge the producer shall pay based on both the number and weight of plastic covered material the producer offers for sale, sells, distributes, or imports in or into the state.

(2)Commencing in the 2027 calendar year, and annually thereafter, a producer not in a PRO shall pay an environmental mitigation surcharge in the amount determined by the

department, as assessed by the California Department of Tax and Fee Administration each year to be deposited into the California Plastic Pollution Mitigation Fund.

(i)In the 2030 calendar year, the department shall determine whether the environmental mitigation surcharge imposed pursuant to this section should be increased based on the evaluation conducted pursuant to subdivision (h) of Section 42057. If that evaluation finds a change in the overall number of plastic components or weight of plastic covered material in the state, the department shall adjust, through regulation, the amount of the environmental mitigation surcharge a PRO collects in proportion to that change. A PRO shall conform the surcharge imposed on its participant producers to the adjusted amount of the environmental mitigation surcharge established by the department.

(j)(1) Upon

appropriation by the Legislature, 40 percent of the moneys in the California Plastic Pollution Mitigation Fund shall be expended by the Department of Fish and Wildlife, the Wildlife Conservation Board, the State Coastal Conservancy, the California Coastal Commission, the Ocean Protection Council, the Department of Parks and Recreation, the Natural Resources Agency, and the California Environmental Protection Agency to monitor and reduce the environmental impacts of plastics on terrestrial, aquatic, and marine life and human health, including to restore, recover, and protect the natural environment.

(2)At least 50 percent of the funds appropriated pursuant to paragraph (1) shall provide benefits to residents living in a disadvantaged or low-income community or rural area.

(3)Moneys appropriated pursuant to paragraph (1) may be used to support grants for tribes, nongovernmental

organizations, community-based organizations, land trusts, and local jurisdictions.

(k)(1) Upon appropriation by the Legislature, 60 percent of the moneys in the California Plastic Pollution Mitigation Fund shall be expended by the Strategic Growth Council, the California Environmental Protection Agency, the Natural Resources Agency, and the Department of Justice to monitor and reduce the historical and current environmental justice and public health impacts of plastics, including to mitigate the historical and current impact of plastics on disadvantaged or low-income communities or rural areas.

(2)Of the moneys appropriated pursuant to paragraph (1), 75 percent shall directly and primarily benefit residents living in disadvantaged or low-income communities.

(3)Moneys appropriated pursuant to

paragraph (1) may be used to support grants to local jurisdictions, tribes, nongovernmental organizations, and community-based organizations.

(l)Moneys appropriated from the California Plastic Pollution Mitigation Fund pursuant to subdivisions (j) and (k) shall be used to increase and enhance the activities described in subdivisions (j) and (k) and shall not replace or reduce allocation of any other funding for those purposes. Accordingly, General Fund or Greenhouse Gas Reduction Fund appropriations to the Department of Fish and Wildlife, the California Coastal Conservancy, the California Coastal Commission, the Wildlife Conservation Board, the Ocean Protection Council, the Department of Parks and Recreation, the Strategic Growth Council, the Department of Justice, the California Environmental Protection Agency, and the Natural Resources Agency shall not be reduced below the levels provided in the Budget Act of 2019 (Chapter 23 of

Statutes of 2019).

(m)Each agency or department receiving funding under this section shall, notwithstanding Section 9795 of the Government Code, provide an annual report to the relevant budget committees of the Legislature on how the funding will be used, progress toward mitigation goals, and relevant details and outcomes from third parties who may be provided funding by the agency or department for mitigation purposes.

(n)This section shall remain in effect only until January 1, 2037, and as of that date is repealed.

§ 42064.01

Amended by Stats. 2023, Ch. 848, Sec. 10. (AB 1526) Effective January 1, 2024.

(a)A person from whom the environmental mitigation surcharge imposed pursuant to Section 42064 is determined to be due by that section may petition for a redetermination of whether this chapter applies to that person within 30 days after service upon them of a notice of the determination. If a petition for redetermination is not filed within the 30-day period, the amount determined to be due becomes final at the expiration of the 30-day period.

(b)A petition for redetermination of the application of this section or Section 42064 shall be in writing and be sent to the department or its designee. The petition shall state the specific grounds upon which the petition is founded and include supporting documentation. The petition may be amended to state additional

grounds or provide additional documentation at any time prior to the date that the department issues its order or decision with regard to the petition for redetermination.

(c)If a petition for redetermination of the application of this section or Section 42064 is filed within the 30-day period, the department shall reconsider whether the environmental mitigation surcharge is due and make a determination in writing. The department may eliminate the environmental mitigation surcharge based on a determination that this section or Section 42064 does not apply to the person who filed the petition.

(d)The department shall provide to the California Department of Tax and Fee Administration notice and the result of each petition for redetermination or claim for refund, including the filing date, reporting periods, amount of the environmental mitigation surcharge involved, and details

necessary for the California Department of Tax and Fee Administration to perform refund or collection duties.

(e)If a timely petition for redetermination has been filed pursuant to subdivision (a), all legal action to collect the environmental mitigation surcharge imposed pursuant to Section 42064 shall be stayed pending the final determination of the department pursuant to subdivision (g).

(f)Notice of the determination of the department pursuant to subdivision (c) shall be served on the same date to the petitioner and the California Department of Tax and Fee Administration.

(g)The order or decision of the department upon a petition for redetermination of the environmental mitigation surcharge shall become final 30 days after service upon the petitioner of notice of the determination.

(h)The environmental mitigation surcharge imposed pursuant to Section 42064 determined to be due by the department pursuant to this section is due and payable at the time it becomes final, and if it is not paid when due and payable, the penalty imposed pursuant to Section 55086 of the Revenue and Taxation Code shall be applied.

(i)Written notice required by this section shall be served as follows:

(1)The notice shall be placed in a sealed envelope, with postage paid, addressed to the petitioner at the petitioner’s address as it appears in the records of the department. The giving of notice shall be deemed complete at the time of the deposit of the notice in a United States Post Office, or a mailbox, subpost office, substation, mail chute, or other facility regularly maintained or provided by the United States Postal

Service without extension of time for any reason.

(2)In lieu of mailing, a notice may be served personally by delivering it to the person to be served and service shall be deemed complete at the time of delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.

(j)A dispute regarding the environmental mitigation surcharge imposed pursuant to Section 42064 shall be resolved pursuant to this section only.

(k)If the department determines that a person is entitled to a refund of all or part of the environmental mitigation surcharge imposed pursuant to Section 42064, the person shall make a claim to the California Department of Tax and Fee Administration pursuant to

Chapter 5 (commencing with Section 55221) of Part 30 of Division 2 of the Revenue and Taxation Code.

§ 42065

Added by Stats. 2022, Ch. 75, Sec. 2. (SB 54) Effective January 1, 2023.

(a)The department shall report to the Legislature every two years its progress in implementing this chapter, including, but not limited to, a description of efforts to adopt regulations under subdivision (a) of Section 42060 and whether PROs are on track to meet the requirements contained in those regulations and the PRO plan. Notwithstanding Section 9795 of the Government Code, the report shall be submitted to the relevant policy and budget committees of the Legislature by January 1 of each odd-numbered year.

(b)If a national recycling PRO and producer responsibility plan is implemented that is similar to the PRO and plan established under this chapter, the department shall review, evaluate, and compare the national PRO and producer

responsibility plan and the PRO and plan established under this chapter. Notwithstanding Section 9795 of the Government Code, the department shall submit a report to the relevant policy and budget committees of the Legislature with any related recommended changes to this chapter.

§ 42067

Amended by Stats. 2023, Ch. 848, Sec. 11. (AB 1526) Effective January 1, 2024.

(a)The department shall prepare one or more initial statewide needs assessments designed to determine the necessary steps and investment needed for covered material, by covered material category, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for specific covered material shall be completed before the completion and approval of any producer responsibility plan that includes that covered material. The department may select an independent third-party contractor to complete the needs assessment. The department or the third-party contractor shall consult with the PRO and local jurisdictions when developing the needs assessment.

(b)The PRO shall reimburse the department for the cost of developing any needs assessment and any update to a needs assessment.

(c)The department may prepare either several needs assessments, with each assessment specific to one or more covered materials subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered material subject to this chapter.

(d)The department shall guide development of a needs assessment, which shall be developed in collaboration with the PRO and a broad diversity of local jurisdictions, recycling service providers, and processors that reflect the different needs and challenges faced by urban, suburban, and rural communities and a variety of different population densities and socioeconomic perspectives and that choose to participate in the development of

a needs assessment.

(e)A needs assessment shall comply with all of the following:

(1)Be designed to inform the PRO budget and PRO plan.

(2)Include an evaluation of all of the following with respect to covered materials and covered material categories:

(A)Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the state’s goals related to recycling, composting, reuse, reduction, and recovery.

(B)The current recycling, composting, collection, and hauling system in the state and the expanded access and additional recycling or composting options needed for enhancements to the system.

(C)The existing access to on-premises recycling and composting for multifamily residences, and the need to expand that access.

(D)The processing capacity and infrastructure in the state and regionally and the ability for innovative and advanced technologies such as artificial intelligence and robotics to improve that capacity.

(E)Current market conditions and the need to create viable responsible end markets in the state and regionally.

(F)Consumer education needs for recycling, composting, reuse, and reduction.

(G)Funding needs and actions necessary to achieve the requirements of this chapter, including payments to recyclers, market incentive payments, or other payments necessary to

achieve the requirements of this chapter.

(H)Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to viable responsible end markets.

(I)An evaluation of the availability or lack of availability of markets for recycled covered material, the need to incentivize recycled or composted material market development, and the associated investments and actions needed to ensure that the covered materials are recycled or composted and have viable and sufficient responsible end markets to meet the requirements of Section 42050.

(J)Factors contributing to contamination and actions and investments needed to avoid contamination and improve recycled and composted material in order to ensure the material meets quality requirements for

remanufacturing.

(K)Availability of responsible end markets and mechanisms to identify and expand responsible end markets. The evaluation shall include identification of measures to avoid and minimize environmental and public health impacts on communities where recycling occurs.

(3)Include an evaluation of all of the following with respect to covered material:

(A)The needs associated with shifting packaging or food service ware from a covered material category that is unlikely to develop sustained viable responsible end markets to a covered material category that either has a viable responsible end market or is likely to develop a sustained viable responsible end market.

(B)Actions and investments necessary to improve covered material design to

improve recyclability and compostability.

(C)Funding needed to implement the source reduction requirements established in Section 42057, including, but not limited to, investments needed to develop reuse and refill infrastructure and to provide consumers with convenient access to that infrastructure to grow and market the use of reusable and refillable packaging and food service ware.

(D)An evaluation of integrating innovative and advanced technologies throughout a MRF that utilize artificial intelligence to improve data collection in order to identify, categorize, and track the disposition of covered materials throughout the recycling process.

(E)An evaluation of actions and investments that would be effective in achieving source reduction requirements.

(4)The needs assessment shall not propose investing in activities contrary to the intent described in Section 40004 or in violation of an agreement entered into pursuant to Section 40059 and shall include a mechanism to disburse funds for identified activities.

(5)The needs assessment may include, but shall not be limited to, elements that will accomplish all of the following:

(A)Expanding access to or improvement of curbside collection services wherever feasible.

(B)Expanding access to dropoff recycling services or other mechanisms where curbside collection services are not feasible, or as necessary in order to supplement curbside collection services to achieve the requirements of this chapter.

(C)Expanding access to collection

services in public spaces.

(D)Providing or facilitating deployment of innovative enhanced collection, composting, and recycling systems and innovative recycling systems within a recycling center or MRF that utilizes advanced technology, such as artificial intelligence and robotics, to improve the identification and sorting of covered materials, where feasible.

(E)An evaluation of actions and investments that would be effective in achieving source reduction requirements.

(F)Creation of on-premises access to recycling or composting services for multifamily residences.

(G)Funding, providing, or facilitating the efficient transport of materials from remote or rural areas to centralized sorting facilities, brokers, or viable responsible end markets.

(H)Enhancing existing materials recycling or composting infrastructure by developing a quality incentive payment, grants, and other mechanisms sufficient to cover the cost of separating, processing, baling, recycling, composting, remanufacturing, and transporting desired materials that meet viable responsible end market quality specifications, or for reducing the rate of inbound contamination to composting facilities.

(I)Infrastructure or other mechanisms needed to implement a source reduction plan, including, but not limited to, investments in reuse, refill, and composting infrastructure.

(J)Infrastructure or other activities needed to achieve recycling rates for all covered material under the plan and ensure covered material is recyclable or compostable.

(f)(1) The initial needs assessment, and any updates, shall be submitted to the advisory board.

(2)Development of a needs assessment by the department pursuant to this section is exempt from Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(g)The initial needs assessment, and any updates, shall be developed through a public process including at least one public meeting at which the department provides the PRO, the advisory board, and any interested members of the public the opportunity for input.