Assembly BillIntroducedPublic Resources
AB 2245: Lubricants waste: packaging: producer responsibility.
What AB 2245 does, verified May 16, 2026
This bill creates a producer responsibility program for lubricants waste and packaging products. It requires producers to register with a producer responsibility organization (PRO) and develop a plan to collect and manage covered products at no cost to residents. The plan must include funding, a description of how the PRO will consult with local jurisdictions, and how it will contract with haulers and recyclers. The program will be implemented by the California Department of Resources Recycling and Recovery (Calrecycle) and the Department of Toxic Substances Control (DTSC). Calrecycle will adopt regulations and set an annual administrative charge for participant producers. The charge will cover Calrecycle's costs of administering and enforcing the program. The bill also establishes a fund to cover Calrecycle's costs and a penalty account to collect civil penalties for violations. It exe…
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Last action: In committee: Held under submission. (2026-05-14)Alert me
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Full contact details, staff, and committees with Connect, $16/moUnlockRecent actions16 total · showing 5
| May. 14, 2026 | In committee: Held under submission. |
| May. 06, 2026 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr. 23, 2026 | Re-referred to Com. on APPR. |
| Apr. 22, 2026 | Read second time and amended. |
| Apr. 21, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 1.) (April 20). |
Latest bill textAmended version, April 22, 2026 · 14,588 words
| Amended IN Assembly April 22, 2026 |
| Amended IN Assembly April 07, 2026 |
| Amended IN Assembly March 23, 2026 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 2245
| Introduced by Assembly Member Michelle Rodriguez |
February 19, 2026 |
An act to amend Sections 42041 and 42051.1 of, and to add Chapter 4.5 (commencing with Section 48695) to Part 7 of Division 30 of, the Public Resources Code, relating to solid waste.
LEGISLATIVE COUNSEL'S DIGEST
AB 2245, as amended, Michelle Rodriguez. Lubricants waste: packaging: producer responsibility.
(1) Under existing law, as part of the hazardous waste control laws, the Department of Toxic Substances Control (DTSC) generally regulates the management and handling of hazardous waste and hazardous materials. Existing law authorizes a public agency, as defined, to operate a household hazardous waste collection facility under permit from DTSC.
The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery (CalRecycle), requires a city and a county to prepare and submit to CalRecycle a countywide integrated waste management plan. The act requires the plan to include a household hazardous waste element that identifies a program in each city and county for the safe collection, recycling, treatment, and disposal of hazardous wastes that are generated by households.
The California Oil Recycling Enhancement Act, administered by CalRecycle, establishes a used oil recycling program to promote and develop alternatives to illegal disposal of used oil. The act imposes a charge for every gallon of lubricating oil sold or transferred in the state, or imported into the state for use in the state, as specified.
This bill would create a producer responsibility program for lubricants waste that is not covered by the act, and packaging associated with lubricant products, and would require a producer responsibility organization (PRO) to provide a convenient collection and management system for covered products at no cost to residents. The bill would create 2 categories of covered product, covered liquid product and covered packaging product. The bill would define “covered liquid product” to mean a petroleum-based automotive product and other related products, as specified. The bill would define “covered packaging product” to mean primary packaging and containers designed and intended to hold a covered liquid product and other similar packaging, as specified. The bill would require a producer of a covered product to register with the PRO, which would be required to develop and implement a producer responsibility plan for the collection and the safe and proper management of covered products. The bill would require CalRecycle, in coordination with DTSC, to adopt regulations to implement the program with an effective date no earlier than January 1, 2029.
This bill would require the PRO, within 12 months of the effective date of the regulations, to submit a product responsibility plan to CalRecycle. The bill would require the plan to include specified elements, including a funding mechanism that provides sufficient funding to carry out the plan. The bill would require, within 6 months of receipt of the plan, CalRecycle, in collaboration with DTSC, to approve, approve in part, or disapprove the plan, as specified. The bill would require CalRecycle to notify the PRO of its decision. If CalRecycle does not approve the plan in full, then the bill would require CalRecycle to specify the reasons for disapproval or identify the portions of the partially approved plan that do not comply with the program, as applicable. The bill would require the PRO to submit a revised plan if its plan is not fully approved.
This bill would require the PRO to implement its plan within 90 days of approval. The bill would require the plan to be fully funded in a manner that equitably distributes the plan’s costs among participant producers, as specified. The bill would require the plan to describe how the producer responsibility organization will consult with and mutually agree upon terms and amounts to reimburse local jurisdictions for the proportional costs associated with collecting and managing covered products pursuant to these provisions. The bill would also require the plan to include a description of how the producer responsibility organization will contract with haulers to transport covered products from the collection facilities to recycling facilities or disposal, and how the producer responsibility organization will contract with recyclers.
This bill would require the PRO to prepare and submit to CalRecycle an annual report describing the activities carried out pursuant to the plan. The bill would require the PRO to retain specified documents, annually audit its accounting books, and make documents available to CalRecycle for review, as specified. The bill would require all reports and records provided to CalRecycle pursuant to the program to be provided under the penalty of perjury. By expanding the scope of a crime, the bill would impose a state-mandated local program.
This bill would require a participant producer, through the PRO, to pay CalRecycle, on an unspecified schedule, an annual administrative charge, as determined by CalRecycle and DTSC. The bill would require the charge be set at an amount that is adequate to cover CalRecycle’s and DTSC’s actual and reasonable costs of administering and enforcing the program. The bill would provide for the imposition of administrative civil penalties on producers and other specified persons who violate the program. The bill would establish the Lubricant Waste and Packaging Producer Responsibility Fund in the State Treasury and would require the administrative charges collected by CalRecycle to be deposited into that fund for expenditure by CalRecycle, upon appropriation by the Legislature, to cover CalRecycle’s cost to implement and enforce the program. The bill would also establish the Lubricant Waste and Packaging Penalty Account in the Lubricant Waste and Packaging Producer Responsibility Fund and would require that the civil penalties collected by CalRecycle pursuant to the program be deposited into that account, for expenditure by CalRecycle, upon appropriation by the Legislature, for activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of the program.
(2) Existing law, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, establishes a producer responsibility program designed to ensure that producers of single-use packaging and food service ware covered by that program take responsibility for the costs associated with the end-of-life management of that material and ensure that the material is recyclable or compostable. The act requires producers, either individually or through participation in a producer responsibility organization, to have an approved plan that, among other things, describe how the producer or organization will comply with the act.
This bill would exempt a covered packaging product from the act.
(3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The people of the State of California do enact as follows:
SECTION 1.
Section 42041 of the Public Resources Code is amended to read:42041.
For purposes of this chapter, the following definitions apply:(a) “Advisory board” means the producer responsibility advisory board established pursuant to Section 42070.
(b) “Bulk or large format packaging” means packaging for a large amount of a product in a large packaging, thereby offsetting the need for multiple smaller packaging units for the same amount of product.
(c) “California circular economy administrative fee” means the fee imposed by the department pursuant to Section 42053.5.
(d) “Concentrate” or “concentration” means reducing the amount of packaging needed for a product by reformulating the product to allow for smaller quantities of the product to be used for the same purpose as the previous, larger quantity.
(e) (1) “Covered material” means both of the following:
(A) Single-use packaging that is routinely recycled, disposed of, or discarded after its contents have been used or unpackaged, and typically not refilled or otherwise reused by the producer.
(B) Plastic single-use food service ware, including, but not limited to, plastic-coated paper or plastic-coated paperboard, paper or paperboard with plastic intentionally added during the manufacturing process, and multilayer flexible material. For purposes of this subparagraph, “single-use food service ware” includes both of the following:
(i) Trays, plates, bowls, clamshells, lids, cups, utensils, stirrers, hinged or lidded containers, and straws.
(ii) Wraps or wrappers and bags used in the packaging of food offered for sale or provided to customers by food service establishments.
(2) Notwithstanding paragraph (1), “covered material” does not include any of the following:
(A) Packaging used for any of the following products:
(i) Medical products and products defined as devices or prescription drugs, as specified in the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Secs. 321(g), 321(h), and 353(b)(1)).
(ii) Drugs that are used for animal medicines, including, but not limited to, parasiticide products for animals.
(iii) Products intended for animals that are regulated as animal drugs, biologics, parasiticides, medical devices, or diagnostics used to treat, or administered to, animals under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.), the federal Virus-Serum-Toxin Act (21 U.S.C. Sec. 151 et seq.), or the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).
(iv) Infant formula, as defined in Section 321(z) of Title 21 of the United States Code.
(v) Medical food, as defined in Section 360ee(b)(3) of Title 21 of the United States Code.
(vi) Fortified oral nutritional supplements used for persons who require supplemental or sole source nutrition to meet nutritional needs due to special dietary needs directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, as those terms are defined by the International Classification of Diseases, Tenth Revision, or other medical conditions as determined by the department.
(B) Packaging used to contain products regulated by the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).
(C) Plastic packaging containers that are used to contain and ship products that are classified for transportation as dangerous goods or hazardous materials under Part 178 (commencing with Section 178.0) of Subchapter C of Chapter I of Subtitle B of Title 49 of the Code of Federal Regulations.
(D) Packaging used to contain hazardous or flammable products classified by the 2012 federal Occupational Safety and Health Administration Hazard Communication Standard (29 C.F.R. 1910.1200).
(E) Beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500)).
(F) Packaging used for the long-term protection or storage of a product that has a lifespan of not less than five years, as determined by the department.
(G) Packaging associated with paint products, as defined in Section 48701.
(H) A covered packaging product, as defined by Section 48695.04.
(I) (i) Covered material for which the producer demonstrates to the department that the covered material meets all of the following criteria:
(I) The covered material is not collected through a residential recycling collection service.
(II) The covered material does not undergo separation from other materials at a commingled recycling processing facility.
(III) The covered material is recycled at a responsible end market.
(IV) Until January 1, 2027, the producer annually demonstrates to the department that the material has had a recycling rate of 65 percent for three consecutive years. On and after January 1, 2027, the producer demonstrates to the department that the material has had a recycling rate at or over 70 percent annually, as demonstrated to the department every two years.
(ii) If only a portion of the covered material sold in or into the state by a producer meets the criteria of clause (i), only the portion of the covered material that meets the criteria of clause (i) is exempt from this chapter and any portion that does not meet the criteria is a covered material for purposes of this chapter.
(f) “Covered material category” means a category that includes covered material of a similar type and form, as determined by the department.
(g) “Curbside collection” means a program that includes the collection of material, including, but not limited to, covered materials, by a local jurisdiction or recycling or composting service provider under contract with a local jurisdiction.
(h) “Department” means the Department of Resources Recycling and Recovery.
(i) “Disadvantaged community” means an area identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code or an area identified as a disadvantaged unincorporated community pursuant to Section 65302.10 of the Government Code.
(j) “Eliminate” or “elimination,” with respect to source reduction, means the removal of a plastic component from a covered material without replacing that component with a nonplastic component.
(k) “Expanded polystyrene” means blown polystyrene and expanded or extruded foams that are thermoplastic petrochemical materials utilizing a styrene monomer and processed by any technique or techniques, including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, foam molding, and extrusion-blow molding (extruded foam polystyrene).
(l) “Lightweighting” means reducing the weight or amount of material used in a specific packaging or food service ware without functionally changing the packaging or food service ware. “Lightweighting” does not include changes that result in a recyclable or compostable covered material becoming nonrecyclable or noncompostable or less likely to be recycled or composted.
(m) “Local jurisdiction” means a city, county, city and county, regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2, or special district that provides solid waste collection services.
(n) “Low-income community” means an area with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.
(o) “Malus fee” means a charge imposed by a PRO on a participant producer for a covered material due to the adverse environmental or public health impacts of the covered material.
(p) “Materials recovery facility” or “MRF” means a recycling facility that receives recyclable material, including, but not limited to, any covered material, for mechanical or manual sorting into specification-grade commodities for sale to a broker or end market.
(q) “Needs assessment” means a needs assessment prepared pursuant to Section 42067.
(r) “Optimize” or “optimization” means limiting the amount of covered material used in packaging by meeting product or packaging needs with minimal material. This includes, but is not limited to, eliminating unnecessary components, right-sizing, concentrating, and using bulk or large format packaging.
(s) “Packaging” means any separable and distinct material component used for the containment, protection, handling, delivery, or presentation of goods by the producer for the user or consumer, ranging from raw materials to processed goods. “Packaging” includes, but is not limited to, all of the following:
(1) Sales packaging or primary packaging intended to provide the user or consumer the individual serving or unit of the product and most closely containing the product, food, or beverage.
(2) Grouped packaging or secondary packaging intended to bundle, sell in bulk, brand, or display the product.
(3) Transport packaging or tertiary packaging intended to protect the product during transport.
(4) Packaging components and ancillary elements integrated into packaging, including ancillary elements directly hung onto or attached to a product and that perform a packaging function, except both of the following:
(A) An element of the packaging or food service ware with a de minimis weight or volume, which is not an independent plastic component, as determined by the department.
(B) A component or element that is an integral part of the product, if all components or elements of the product are intended to be consumed or disposed of together.
(t) “Plastic” means a synthetic or semisynthetic material chemically synthesized by the polymerization of organic substances that can be shaped into various rigid and flexible forms, and includes coatings and adhesives. “Plastic” includes, without limitation, polyethylene terephthalate (PET), high density polyethylene (HDPE), polyvinyl chloride (PVC), low density polyethylene (LDPE), polypropylene (PP), polystyrene (PS), polylactic acid (PLA), and aliphatic biopolyesters, such as polyhydroxyalkanoate (PHA) and polyhydroxybutyrate (PHB). “Plastic” does not include natural rubber or naturally occurring polymers such as proteins or starches.
(u) “Plastic component” means any single piece of covered material made partially or entirely of plastic. A plastic component may constitute the entirety of the covered material or a separate or separable piece of the covered material.
(v) “Processing” means to sort, segregate, break or flake, and clean material to prepare it to meet the specification for sale to a responsible end market.
(w) (1) “Producer” means a person who manufactures a product that uses covered material and who owns or is the licensee of the brand or trademark under which the product is used in a commercial enterprise, sold, offered for sale, or distributed in the state.
(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered material is the owner or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the product using the covered material is used in a commercial enterprise, sold, offered for sale, or distributed in the state. For purposes of this subdivision, a licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution of the product packaged in or made from the covered material.
(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material in or into the state.
(4) “Producer” does not include a person who produces, harvests, and packages an agricultural commodity on the site where the agricultural commodity was grown or raised.
(5) For purposes of this chapter, the sale of covered materials shall be deemed to occur in the state if the covered materials are delivered to the purchaser in the state.
(x) “Producer responsibility organization” or “PRO” means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 and is formed for the purpose of implementing a plan to meet the requirements of this chapter.
(y) “Producer responsibility plan” or “plan,” unless context requires otherwise, means the plan produced by a PRO, or by a producer that chooses to assume responsibility to comply with this chapter individually, and submitted to the advisory board and department pursuant to Section 42051.1.
(z) “Rate of inbound contamination” means the amount of nonrecyclable or noncompostable materials arriving at a materials recovery facility or other recycling or composting facility.
(aa) (1) “Recycle” or “recycling” means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ultimately be disposed of onto land or into water or the atmosphere, and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products, including compost, that meet the quality standards necessary to be used in the marketplace.
(2) “Recycle” or “recycling” does not include any of the following:
(A) Combustion.
(B) Incineration.
(C) Energy generation.
(D) Fuel production, except for anaerobic digestion of source separated organic materials.
(E) Other forms of disposal.
(3) To be considered recycled, covered material shall be sent to a responsible end market.
(4) (A) The department may adopt regulations to define guidelines and verification requirements for covered material shipped out of state and exported to other countries for recycling, including processing requirements, and contamination standards, or to otherwise implement this paragraph.
(B) For any mixture of plastic waste exported to another country, the PRO or producer shall certify to the department that the processes and recycling technologies used meet both of the following requirements, as determined by the department:
(i) The plastic waste is a mixture of plastic types consisting only of one or more of polyethylene, polypropylene, or polyethylene terephthalate, and the export is destined for separate recycling of each material.
(ii) The plastic waste export is not prohibited by an applicable law or treaty of the destination jurisdiction, and the import of the plastic waste into the destination jurisdiction will be conducted in accordance with all applicable laws and treaties of that destination jurisdiction.
(C) For any mixture of plastic waste exported to other states or countries, the PRO or producer shall certify to the department that the recycling technology used meets the requirements of this subdivision.
(D) In meeting the requirements of subparagraphs (B) and (C), the PRO or producer shall provide documentation necessary to verify this certification and shall make the certification under penalty of perjury.
(5) The department’s regulations shall encourage recycling that minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts. The regulations shall include criteria to exclude plastic recycling technologies that produce significant amounts of hazardous waste.
(ab) “Recycling rate” means the percentage, overall and by category, of covered material sold, offered for sale, distributed, or imported in the state that is ultimately recycled. The recycling rate shall be calculated as the amount of covered material that is recycled in a given year divided by the total amount of covered material disposed of, as defined in subdivision (b) of Section 40192, and the amount of covered material recycled, unless and until the department adopts a new methodology for calculating the recycling rate by regulation.
(ac) “Recycling service provider” means a solid waste enterprise that provides solid waste handling services on behalf of a local jurisdiction.
(ad) “Responsible end market” means a materials market in which the recycling and recovery of materials or the disposal of contaminants is conducted in a way that benefits the environment and minimizes risks to public health and worker health and safety. The department may adopt regulations to identify responsible end markets and to establish criteria regarding benefits to the environment and minimizing risks to public health and worker health and safety.
(ae) (1) “Retailer” or “wholesaler” means the person or entity who sells covered material in the state to purchasers or offers to purchasers the covered material in the state through any means, including, but not limited to, any of the following:
(A) Remote offering, including sales outlets or catalogs.
(B) Electronically through the internet.
(C) Telephone.
(D) Mail.
(E) Direct sales.
(2) A person who sells covered material as a third-party seller using an online marketplace as described in paragraph (3) shall be considered the retailer or wholesaler for purposes of such transactions. The owner or operator of the online marketplace shall not be considered the retailer or wholesaler for such sales.
(3) For purposes of this subdivision, “online marketplace” means a consumer-directed, electronically accessed platform in which all of the following are true:
(A) The platform includes features that enable third-party sellers to sell consumer products directly to consumers in the state without the owner or operator of the platform involved in the transaction other than by providing order processing, payment, storage, shipping, or delivery services.
(B) Third-party sellers use the features described in subparagraph (A) to sell directly to consumers in the state, with title to the consumer product passing from the third-party sellers directly to consumers and not being held by the owner or operator of the online marketplace at any point during the transaction, including upon receipt of the order and throughout the order fulfillment process.
(C) Except as provided by subparagraph (E), the owner or operator of the platform does not directly or indirectly control the covered material used in packaging and shipping of a consumer product in this state.
(D) The person or entity operating the platform has a contractual or similar relationship with consumers governing their use of the platform to purchase consumer products.
(E) Third-party sellers agree, pursuant to the platform’s terms and conditions or other enforceable agreement, that they will not use the platform to offer for sale, sell, or distribute into the state covered material that does not meet the requirements of this chapter.
(af) “Reusable” or “refillable” or “reuse” or “refill,” in regard to packaging or food service ware, means either of the following:
(1) For packaging or food service ware that is reused or refilled by a producer, it satisfies all of the following:
(A) Explicitly designed and marketed to be utilized multiple times for the same product, or for another purposeful packaging use in a supply chain.
(B) Designed for durability to function properly in its original condition for multiple uses.
(C) Supported by adequate infrastructure to ensure the packaging or food service ware can be conveniently and safely reused or refilled for multiple cycles.
(D) Repeatedly recovered, inspected, and repaired, if necessary, and reissued into the supply chain for reuse or refill for multiple cycles.
(2) For packaging or food service ware that is reused or refilled by a consumer, it satisfies all of the following:
(A) Explicitly designed and marketed to be utilized multiple times for the same product.
(B) Designed for durability to function properly in its original condition for multiple uses.
(C) Supported by adequate and convenient availability of and retail infrastructure for bulk or large format packaging that may be refilled to ensure the packaging or food service ware can be conveniently and safely reused or refilled by the consumer multiple times.
(ag) “Right-size” or “right-sizing” means reducing the amount of material used to package an item by reducing unnecessary space or eliminating unnecessary components of the packaging.
(ah) “Rural area” has the same meaning as defined in Section 50101 of the Health and Safety Code.
(ai) “Single use” means conventionally disposed of after a single use or not sufficiently durable or washable to be, or not intended to be, reusable or refillable.
(aj) “Source reduction” means the reduction in the amount of covered material created by a producer relative to a baseline established pursuant to subdivision (b) of Section 42057. Methods of source reduction include, but are not limited to, shifting covered material to reusable or refillable packaging or a reusable product or eliminating unnecessary packaging. “Source reduction” does not include either of the following:
(1) Replacing a recyclable or compostable covered material with a nonrecyclable or noncompostable covered material or a covered material that is less likely to be recycled or composted.
(2) Switching from virgin covered material to postconsumer recycled content.
(ak) “Source reduction plan” means the plan prepared as part of the PRO plan in accordance with Section 42057.
(al) “Unexpended funds” means moneys in a PRO’s accounts that the organization is not already obligated to pay pursuant to a contract, claim, or similar mechanism. “Unexpended funds” excludes the California circular economy administrative fees.
SEC. 2.
Section 42051.1 of the Public Resources Code is amended to read:42051.1.
(a) As a condition of producer responsibility plan approval, the PRO plan shall comply with the regulations adopted by the department pursuant to Section 42060. The PRO shall submit a plan and budget that includes the provisions necessary for the department to ensure producers covered under the plan comply with this chapter.(b) The plan shall include all of the following:
(1) Actions and investments that the PRO will implement in order to meet the requirements of this chapter and address the needs and investments identified in the needs assessment.
(2) The source reduction plan required pursuant to Section 42057. For any covered material that is not reasonably anticipated by the PRO to achieve the requirements of this chapter, the PRO shall include in the plan a timeline and actions to discontinue use of the covered material category.
(3) Technologies and means that will be utilized to achieve recycling requirements, including demonstration that the means and technologies meet the conditions specified in subdivision (aa) of Section 42041.
(c) The plan shall include objective and measurable criteria whenever possible, and describe all of the following:
(1) How the PRO will meet the requirements of this chapter, including, but not limited to, how it will, in an economically efficient and practical manner, provide for the necessary infrastructure and viable responsible end markets to ensure the covered material will achieve the requirements of Section 42050 based on the needs assessments.
(2) How the PRO will support and achieve, and how the budget will fund, the collection, processing, recycling, or composting of, and the development of viable responsible end markets for, covered materials to meet the requirements of this chapter. This includes, but is not limited to, actions necessary to sort, segregate, break or flake, and process material to specifications for sale to a responsible end market. For purposes of this paragraph, “specifications” means the third-party purchasing specifications issued by a buyer or buyers of recycled materials for reprocessing into a new product.
(3) (A) How the plan is supplemental to, and not in conflict with, disruptive of, or adversely affecting, the performance of the solid waste network providing services in accordance with local solid waste handling requirements and the intent described in Section 40004, and how the PRO will leverage and utilize existing collection programs and recycling, composting, sorting, and processing infrastructure.
(B) Except as specified in subdivisions (b), (c), (d), and (e) of Section 42060.5, how the plan will be implemented in a manner utilizing solid waste collection programs and solid waste facilities as the designated system for the collection and processing of covered material.
(4) In accordance with Section 40059, how the plan and the activities undertaken pursuant to the plan will be implemented in compliance with state and local laws, rules, and regulations applicable to solid waste handling and in a manner that does not violate existing franchise agreements.
(5) How covered material will be collected, processed, and managed, and recycled, remanufactured, or composted, consistent with the goals, standards, and practices required by this chapter, including ensuring covered material collected for recycling will be transferred to viable responsible end markets for processing into new packaging or products, including, but not limited to, how the plan will enhance or expand viable responsible end markets in California including manufacturing.
(6) Arrangements with processors or recyclers to ensure that covered materials that are not collected through a curbside collection program or other local collection program are collected and recycled at a viable responsible end market, including any investment that will be made to cover the cost of the covered material being processed or recycled by processors or recyclers.
(7) Arrangements to establish and fund reuse or refill infrastructure, fund facility retrofits, or other needed infrastructure to eliminate plastic covered material, shift covered material from plastic to a nonplastic covered material category, or any other actions taken, or that will be taken, to implement the source reduction requirements pursuant to Section 42057.
(8) How postconsumer recycled content will be incorporated into covered material, including the amounts of postconsumer recycled content.
(9) How the plan will be implemented in a manner consistent with the waste hierarchy established in Section 40051.
(d) (1) The plan shall include a fee for participants of the PRO consistent with the provisions of Section 42053, set forth the calculation of the fee, and describe the process through which the PRO will collect the fee from producers that are participants of the PRO’s approved plan.
(2) The plan shall include a description of the fee structure and a schedule of the fees actually charged to producers who are participants of a PRO’s approved plan.
(e) The plan shall include efforts to use education and promotion to encourage proper participation in recycling and composting collection and reuse and refill systems. The PRO shall ensure coordination between these efforts and existing educational and promotional efforts. These may include, but are not limited to, all of the following:
(1) Education and engagement to reduce the rate of inbound contamination or unwanted materials.
(2) Outreach to obtain consistently high levels of public participation in and use of collection services and reuse and refill systems.
(3) Education and engagement with residents on proper recycling, composting, and reuse and refill behaviors.
(4) Support for increased statewide and local outreach needed to achieve the plan’s goals.
(f) The plan shall include a closure or transfer plan to settle the affairs of the PRO that ensures that producers who are participants of the PRO’s approved plan will continue to meet their obligations in the event of dissolution of the organization or revocation of a plan by the department and that describes a process for notifying the department, the advisory board, local jurisdictions, and any contractors of the dissolution. The closure or transfer plan shall provide for sufficient reserve funds in the trust fund or escrow account established pursuant to Section 42056 to allow the PRO to satisfy all obligations in the event of dissolution of the PRO until the participants of the PRO’s approved plan have become a participant of a different PRO’s approved plan.
(g) (1) The plan shall include a process for determining the costs that will be incurred by local jurisdictions, recycling service providers, alternative collection systems, and others under this chapter and shall include a mechanism and schedule for transferring the portion of the fee required by paragraph (7) of subdivision (c) of Section 42053 to local jurisdictions. The PRO shall determine the costs based on information provided by local jurisdictions, recycling service providers, and others under this chapter. Payment of these costs shall be reflected in the budget pursuant to subdivision (j).
(2) The plan shall include a process to resolve disputes for determining and paying the reasonable costs pursuant to paragraph (1) that arise between the PRO and a local jurisdiction or a recycling service provider. This process shall be reviewed by the advisory board to ensure the PRO covers costs related to this chapter and shall become effective upon plan approval by the department.
(h) The plan shall include the source reduction data specified in subdivision (c) of Section 42057.
(i) (1) The plan shall include consideration of the needs assessment and any recommended investments to meet the needs identified in the needs assessments and inform the budget.
(2) The budget shall not propose investing in activities in violation of Section 40004 or an agreement entered into pursuant to Section 40059 and shall include a mechanism to disburse funds for identified activities.
(3) The budget 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) Creation of on-premises access to recycling or composting services for multifamily residences.
(F) Funding, providing, or facilitating the efficient transport of materials from remote or rural areas to centralized sorting facilities, brokers, or viable responsible end markets.
(G) 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.
(H) Infrastructure or other mechanisms needed to implement a source reduction plan, including, but not limited to, investments in reuse, refill, and composting infrastructure.
(I) Infrastructure or other activities needed to achieve recycling rates for all covered material under the plan and ensure covered material is recyclable or compostable.
(4) In developing the budget, the PRO may delineate investments the PRO will make based on covered material categories.
(j) (1) The plan shall include a budget designed to fully fund the costs necessary to implement this chapter. The budget shall include, but not be limited to, fully funding the plan and all other costs associated with implementing the plan, including, but not limited to, all of the following:
(A) Actions and investments identified in the plan to fund the budget and needs and investments identified in the needs assessments.
(B) Costs associated with this chapter incurred by local jurisdictions, recycling service providers, and other collection programs, and costs related to consumer outreach and education; the transportation of covered materials to a materials recovery facility, broker, or viable responsible end market; cleaning, sorting, aggregating, and baling covered materials as necessary to bring those materials to a viable responsible end market; waste stream sampling and reporting required by this chapter for local governments; costs incurred to educate ratepayers to improve the preparation and sorting of covered material; and improvements to collection, sorting, decontamination, remanufacturing, and other infrastructure necessary to achieve recycling rates. These costs include costs related to both curbside and noncurbside collection programs and may be varied based on population density, distance to a viable responsible end market, and other relevant factors.
(C) Reimbursing costs incurred by the department and the California Department of Tax and Fee Administration.
(D) Administering the PRO.
(E) Environmental mitigation activities associated with Section 42064.
(F) Investments to develop and sustain viable responsible end markets for each covered material category.
(G) Other investments necessary to implement the plan and achieve the source reduction, recyclability and compostability, recycling rate, and other requirements of this chapter, including, but not limited to, ensuring that plan implementation avoids and minimizes negative environmental or public health impacts on disadvantaged or low-income communities or rural areas.
(H) If reasonable and able to be discretely directed, funding derived from a material type may be spent on investments needed for that specific material type.
(2) A producer or PRO shall not expend revenue collected for implementation of the plan for any of the following purposes:
(A) To pay an administrative civil penalty pursuant to Section 42081.
(B) To pay costs associated with litigation between the producer or organization and the state.
(C) To compensate a person whose position is primarily representing the PRO relative to the passage, defeat, approval, or modification of legislation that is being considered by a local, state, or federal government body, nor shall the PRO use or permit the use of these funds for paid advertisement 30 calendar days prior to or during a legislative session for the purposes of encouraging the passage, defeat, approval, or modification of legislation that is being considered, or was considered during the previous legislative session.
(D) To subsidize, incentivize, or otherwise support incineration, engineered municipal solid waste conversion, the production of energy or fuels, except for fuels produced using anaerobic digestion of source separated organic materials, or other disposal activities.
(3) (A) A PRO shall not maintain total program reserves exceeding 60 percent of its annual operating expenses, consistent with the requirements of the Financial Accounting Standards Board’s Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958), and any future updates to that standard.
(B) The department, in approving the annual PRO budget, may authorize the total reserves to be increased to up to 75 percent of the PRO’s annual operating expenses if the department determines the increase is necessary to implement the requirements of this chapter.
(C) If a PRO’s reserves exceed the amount specified in subparagraph (A) or (B), the department may require the PRO or a participant producer to increase spending on implementing the requirements of this chapter.
(k) Consistent with subdivision (l), as part of the plan, the PRO or a participant producer may rely on a range of means to collect and recycle or compost various categories of covered materials that are not collected and recycled or composted through a curbside collection program or other local collection program, including, but not limited to, dropoff recycling services and retailer take-back.
(l) (1) A plan shall include curbside recycling and composting collection for covered materials under any of the following circumstances:
(A) The category of covered materials can be made suitable for curbside collection and can be effectively sorted by the facilities receiving the curbside collected material for recycling or composting.
(B) The recycling facility providing processing and sorting service, in consultation with the local jurisdiction, agrees to include the category of covered materials as an accepted material for recycling or composting and agrees to collect and sort the material in a manner that achieves the quality necessary for recycling and remanufacturing or composting.
(C) The provider of the curbside collection and recycling or composting service agrees to the costs arrangement.
(2) If a MRF chooses to send material to another sorting facility for additional sorting and recycling of covered materials, the PRO shall provide the initial MRF a rebate based on criteria the PRO shall develop to cover transportation costs of the covered materials provided the covered material is free of toxic or hazardous materials.
(m) The plan shall include specific measures to ensure that producers participating in the plan comply with the requirements of the plan and this chapter. Those measures shall include, at a minimum, all of the following elements:
(1) Adequate incentives for compliance, including, but not limited to, fees for failing to provide accurate and timely information required to be provided to the PRO or otherwise materially violating requirements of the plan or this chapter. Notwithstanding the PRO’s assessment of a fee, the department may take enforcement action pursuant to Article 5 (commencing with Section 42080) against individual producers or the PRO in violation of this chapter.
(2) Protocols to ensure that the PRO becomes aware, within a reasonable time, of producers’ violations of the requirements of the plan or this chapter.
(3) Criteria for determining when a producer’s performance merits terminating the producer’s participation in the PRO’s plan, and a process for making that determination.
(4) Record maintenance protocols requiring the PRO to maintain records sufficient to demonstrate whether each producer participating in the plan has complied with the requirements of the plan and this chapter for at least the previous three years. Those protocols shall ensure that all records remain reasonably accessible by the department upon request.
(5) The plan shall include the specific data information required under subdivision (c) of Section 42057.
(n) The PRO shall ensure that the plan implementation avoids or minimizes negative environmental or public health impacts on disadvantaged or low-income communities or rural areas and vulnerable communities outside the state.
(o) (1) The plan shall explain how the PRO will reconcile reporting data from a producer for a product covered by another stewardship program when any of the following occurs:
(A) A covered product is collected by another stewardship program.
(B) A covered product is reported by a producer to another stewardship program.
(C) A product subject to another stewardship program is collected by the PRO.
(D) A product subject to another stewardship program is reported by a producer to the PRO.
(2) The plan shall include an agreement with any relevant stewardship organization to effectuate the reconciliation described in paragraph (1).
SEC. 3.
Chapter 4.5 (commencing with Section 48695) is added to Part 7 of Division 30 of the Public Resources Code, to read:CHAPTER 4.5. Lubricant Waste and Packaging Producer Responsibility Act of 2026
Article 1. General Provisions and Definitions
48695.
(a) This chapter shall be known, and may be cited, as the Lubricant Waste and Packaging Producer Responsibility Act of 2026.(b) The purpose of this chapter is to provide for the safe and proper management of waste lubricant products that are not covered by Chapter 4 (commencing with Section 48600), including coolants and antifreeze, engine additives designed to remain in the lubricating system, fuel additives and treatments designed to remain in mechanical systems for operational use, greases, marine lubricants, hydraulic fluids, heat transfer fluids, specialty industrial oils, oil-based lubricants, two-cycle oils, and other functional fluids typically used in automotive and transportation mechanical applications that are commercially available to a nonbusiness consumer, regardless of formulation, including conventional, synthetic, rerefined, biodegradable, or specialty products, including used oil packaging, which is costly for California’s local governments. This chapter also provides for the safe and proper management of all primary lubricant packaging, excluding metals, containing these liquid products, adding engine oil, transmission oils, and gear oils, commercially available to all consumers, in business or non-business nonbusiness applications that may cause significant damage to the environment when managed improperly.
(c) In implementing this chapter, CalRecycle, the producer responsibility organization, and any approved producer responsibility plan shall maintain and build off the existing infrastructure and funding of Chapter 4 (commencing with Section 48600), as that chapter read on January 1, 2026, and any applicable regulations.
48695.02.
(a) (1) Except as provided in Section 48695.30, CalRecycle, in coordination with DTSC, shall adopt, amend, or repeal, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), regulations to implement this chapter. CalRecycle shall not adopt regulations pursuant to this section with an effective date earlier than January 1, 2029.(2) The regulations adopted by CalRecycle shall establish collection and recycling rate targets for covered products.
(2)
(3)
As part of the regulations, the producer responsibility organization shall retain a third-party expert to determine a baseline amount of covered liquid products disposed of in a household hazardous waste collection facility and to ensure that the producer responsibility organization can measure progress towards meeting the performance-based standards in Section 48695.32.(b) On or before January 1, 2028, CalRecycle shall establish and post on its internet website a list of covered products.
(c) On or before January 1, 2028, CalRecycle shall approve one producer responsibility organization that meets the requirements of this chapter.
(d) (1) When CalRecycle updates its material characterization study pursuant to Section 42061, CalRecycle shall also include the following information:
(A) The amount of covered packaging products being disposed of in California landfills.
(B) The amount of covered packaging products being properly collected and managed through a household hazardous waste collection facility.
(2) The material characterization study described in Section 42061 shall identify the percentage of covered packaging products and the producer responsibility organization shall pay its pro rata share of the actual and reasonable cost of the material characterization study based on that percentage. The proportion of costs for covered packaging products to conduct the material characterization study shall be paid by the producer responsibility organization to CalRecycle and the producer responsibility plan shall define how these costs will be proportionally allocated to participant producers.
48695.04.
For purposes of this chapter, the following definitions apply:(a) (1) “Approved plan” means a producer responsibility plan that has been approved by CalRecycle pursuant to Section 48695.30 and that has not been revoked by CalRecycle pursuant to Section 48695.64.
(2) A partially approved plan is not an approved plan.
(b) “Brand” means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(c) “CalRecycle” means the Department of Resources Recycling and Recovery.
(d)“Collection center” means a municipal, public, or private entity with collection and aggregation infrastructure for household hazardous waste, as defined by Section 25218.1 of the Health and Safety Code, that collects the covered product.
(e)
(d) “Consumer” means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(f)
(e) “Contact information” means a name, physical address, mailing address, email address, and phone number.
(g)
(f) (1) “Covered liquid product” means a petroleum-based, petroleum-derived, synthetic, bio-based, or glycol-based lubricant, coolant, and similar chemical formulations. “Covered liquid product” includes, but is not limited to, coolants and antifreeze, fuel additives and treatments designed to remain in mechanical systems for operational use, greases, oil-based lubricants, and two-cycle oils that are commercially available to a nonbusiness consumer.
(2) “Covered liquid product” does not include any of the following:
(A) A product subject to the used oil recycling program described in Article 4 (commencing with Section 48630) of Chapter 4.
(B) A fuel sold primarily for combustion, including gasoline, diesel fuel, aviation fuel, marine fuel, propane, natural gas, or similar energy products, except where those products are blended blended, packaged, or marked primarily as a lubricant, additive, treatment, or functional fluid.
(C) A household consumer product that is regulated as a cosmetic, drug, or personal care product under state or federal law.
(D) A food product intended for human or animal consumption, except where a vegetable or food-grade oil is sold or distributed primarily for mechanical or industrial lubrication.
(E) A product described in paragraph (1) that is typically used by a business that conducts vehicle maintenance, repair, or similar service, with operations that require management, storage, and disposal.
(h)
(g) (1) “Covered packaging product” includes both of the following:
(A) Primary packaging and containers designed and intended to hold a covered liquid product for sale or distribution with a capacity of 15 gallons or less, including, but not limited to, a bottle, pail, cartridge, and bag-in-box system, that is customarily generated, collected, or managed with a used oil or antifreeze container at a generator site. A product described in this subparagraph is exempt from Section 66261.7 of Title 22 of the California Code of Regulations.
(B) Packaging and containers for a product subject to the used oil recycling program described in Article 4 (commencing with Section 48630) of Chapter 4.
(2) “Covered packaging product” does not include any of the following:
(A) A product packaged exclusively in a container with a capacity greater than 15 gallons, including a bulk tank, intermediate bulk container, or tanker delivery system.
(B) A product described in paragraph (2), excluding subparagraph (H) of subdivision (e) of Section 42041.
(C) Secondary and tertiary packaging under the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Chapter 3 (commencing with Section 42040) of Part 3).
(D) A metal rigid container, including a metal aerosol container, except for a rigid plastic container that is comprised of one or more plastic resins that may have a nonplastic additive or nonplastic cap, lid, label, handle, or other incidental packaging.
(i)
(h) “Covered product” means a covered liquid product and a covered packaging product.
(j)
(i)
“DTSC” means the Department of Toxic Substances Control.(k)
(j) “Generator” has the same meaning as in Section 25205.1 of the Health and Safety Code.
(l)
(k) “Household hazardous waste collection facility” has the same meaning as in subdivision (e) of Section 25218.1 of the Health and Safety Code.
(m)
(l) “Participant producer” means a producer that is registered with the producer responsibility organization.
(n)
(m) (1) “Producer” means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the person’s own name or brand.
(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person that imports the covered product into the state for sale, distribution, or installation.
(4) If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, dealer, or wholesaler who sells the product in or into the state.
(5) For purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(o)
(n) “Producer responsibility organization” means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 that is appointed by one or more producers to act as an agent on behalf of the producers to design, submit, administer, and implement a producer responsibility plan and to otherwise comply with the requirements of this chapter.
(p)
(o) “Producer responsibility plan” means the plan developed by a producer responsibility organization for the collection, transportation, and the safe and proper management of covered products pursuant to Article 4 (commencing with Section 48695.30) and submitted to CalRecycle for approval pursuant to Section 48695.30.
(q)
(p) “Recycling” has the same meaning as in Section 42041.
(r)
(q) “Sell” or “sales” means a transfer of ownership of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, internet website, online marketplace, or similar electronic means. For purposes of this chapter, “sell” or “sales” includes the purchase of a covered product by a consumer from a manufacturer, wholesaler, or retailer.
(s)
(r) “Used oil” has the same meaning as in Section 25250.1 of the Health and Safety Code.
(t)
(s) “Waste lubricant product” means any oil that has not been used for its intended purpose and is contained in its original packaging.
Article 2. Producers
48695.10.
(a) No later than 90 days after CalRecycle’s approval of the producer responsibility organization, pursuant to subdivision (c) of Section 48695.02, a producer shall register with the producer responsibility organization.(b) No later than 30 days after the effective date of the regulations described in Section 48695.02, a producer, or the producer responsibility organization on behalf of the producer, shall notify CalRecycle electronically that the producer has registered with the producer responsibility organization.
(c) A producer shall register with the producer responsibility organization in accordance with the procedures and requirements established by the producer responsibility organization.
(d) On and after January 1, 2031, or upon approval of a producer responsibility plan pursuant to Section 48695.30, whichever is sooner, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following conditions are met:
(1) The producer is registered with the producer responsibility organization.
(2) The covered product is accounted for in the producer responsibility plan.
(3) CalRecycle has not rejected the producer responsibility plan.
(e) A producer shall be deemed compliant with this chapter for a particular covered packaging product if the producer reports primary, secondary, and tertiary data for the covered packaging product to a stewardship organization under the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Chapter 3 (commencing with Section 42040) of Part 3).
(f) If an entity does not meet the definition of a producer and is not subject to this chapter but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point and shall register with the producer responsibility organization and otherwise comply with the requirements of this chapter before beginning to sell, offer for sale, import, or distribute a covered product in the state.
48695.12.
(a) No later than 180 days after the effective date of the regulations described in Section 48695.02, a producer shall provide to CalRecycle and DTSC, in a form and manner jointly established by CalRecycle and DTSC, both of the following:(1) The producer’s contact information.
(2) A list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b) A producer shall provide to CalRecycle and DTSC updates to the information described in subdivision (a) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon CalRecycle’s or DTSC’s request.
Article 3. Producer Responsibility Organizations
48695.20.
The producer responsibility organization shall have a governing board consisting of participant producers that represent the diversity of covered products.48695.22.
If CalRecycle determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved plan in a manner that effectuates the purposes of this chapter, CalRecycle may revoke its approval of the producer responsibility plan pursuant to Section 48695.64 and may approve a producer responsibility plan submitted by another producer responsibility organization.48695.24.
The producer responsibility organization shall notify CalRecycle within 30 calendar days of any of the following:(a) The end of a three-month period during which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer.
(b) The date that a producer no longer participates in the producer responsibility organization’s approved plan.
(c) Any instance of noncompliance by a participant producer.
48695.26.
Within 24 months of the effective date of the regulations described in Section 48695.02, the producer responsibility organization with an approved plan shall provide a convenient collection and management system for covered products at no cost to residents.48695.28.
The producer responsibility organization may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this chapter.Article 4. Producer Responsibility Plans
48695.30.
(a) Within 12 months of the effective date of the regulations described in Section 48695.02, the producer responsibility organization shall develop and submit a proposed producer responsibility plan to CalRecycle, in a form and manner determined by CalRecycle.(b) (1) Within six months of receipt of a proposed producer responsibility plan, CalRecycle, in collaboration with DTSC, shall approve, approve in part, or disapprove the producer responsibility plan.
(2) CalRecycle and DTSC shall jointly determine a process for approving the producer responsibility plan and any other information submitted in compliance with this chapter to ensure that CalRecycle and DTSC each retain oversight commensurate with its jurisdiction and authority and to minimize the cost and burden to producers. DTSC shall be responsible for the approval of producer responsibility plan components related to safe handling, transportation, and management of covered products.
(3) Within six months of receiving the producer responsibility plan, DTSC, in collaboration with CalRecycle, shall review and approve, approve in part, or disapprove the producer responsibility plan components related to safe handling, transportation, and management of covered products. If DTSC approves in part or disapproves any producer responsibility plan components, DTSC shall notify the producer responsibility organization of changes necessary for plan approval, and DTSC and the producer responsibility organization shall follow the process outlined in paragraph (4). Within three days of DTSC approving the producer responsibility plan components, it shall notify CalRecycle.
(4) CalRecycle shall not approve the producer responsibility plan until it receives approval of the producer responsibility plan components from DTSC pursuant to paragraphs (2) and (3). Within six months after being notified by DTSC that it has approved the producer responsibility plan components, CalRecycle shall approve, approve in part, or disapprove the producer responsibility plan. In making a determination pursuant to this subdivision, CalRecycle or DTSC may solicit information from producers, other agencies or departments, or stakeholders, as it deems appropriate.
(c) If CalRecycle approves a proposed producer responsibility plan or a revised producer responsibility plan, then CalRecycle shall notify the producer responsibility organization of the approval. The producer responsibility organization shall implement the approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by CalRecycle.
(d) If CalRecycle disapproves a proposed producer responsibility plan or a revised producer responsibility plan, then CalRecycle shall notify the producer responsibility organization of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of notice of disapproval, the producer responsibility organization shall submit a revised producer responsibility plan.
(e) (1) If CalRecycle approves a proposed producer responsibility plan or a revised producer responsibility plan in part, then CalRecycle shall notify the producer responsibility organization of the partial approval and identify the portions of the producer responsibility plan that do not comply with this chapter.
(2) Within 30 days of receipt of the notice of partial approval, the producer responsibility organization shall submit a revised producer responsibility plan to CalRecycle.
(3) The producer responsibility organization shall implement the approved parts of the producer responsibility plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by CalRecycle.
(f) Within 30 days of receipt of a revised producer responsibility plan, CalRecycle shall approve, approve in part, or disapprove the revised producer responsibility plan.
(g) CalRecycle may impose additional requirements for any portion of a proposed producer responsibility plan or a revised producer responsibility plan that does not comply with this chapter and that has not been approved.
(h) When reviewing a proposed producer responsibility plan or a revised producer responsibility plan, CalRecycle or DTSC may solicit information from producers, other agencies or departments, or stakeholders, as CalRecycle or DTSC deems appropriate.
(i) CalRecycle or DTSC may review an approved plan at any time. If CalRecycle or DTSC finds that an approved plan is deficient, then it may recommend modifications.
(j) Any substantial changes to an approved plan shall be submitted to CalRecycle for approval.
(k) (1) An approved plan shall be a public record, except that financial, production, or sales data reported by the producer responsibility organization to CalRecycle 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. CalRecycle may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.
(2) The producer responsibility organization may submit to CalRecycle a redacted version of the approved plan that removes any proprietary or confidential information.
(3) Within 90 days of approval or revision of a producer responsibility plan, CalRecycle shall post on its internet website the producer responsibility plan and a list of all the participant producers covered by the producer responsibility plan.
(l) Within 24 months of the effective date of the regulations described in Section 48695.02, a producer responsibility organization shall have a producer responsibility plan approved by CalRecycle, and each producer shall be subject to an approved plan.
(m) A participant producer shall be deemed in compliance with this chapter during the review process of a proposed producer responsibility plan or revised producer responsibility plan if the producer follows the proposed producer responsibility plan or revised producer responsibility plan, as applicable, as submitted by the producer responsibility organization.
48695.32.
A producer responsibility plan shall do all of the following:(a) Be designed to ensure the safe and convenient collection and management of covered products statewide.
(b) (1) Describe how the producer responsibility organization will meet collection and recycling metrics established by CalRecycle in the regulations required by Section 48695.02.
(2) The recycling rate goals for covered packaging products shall be consistent with recycling rate goals established in the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Chapter 3 (commencing with Section 42040) of Part 3).
(c) Include collection strategies to ensure elderly consumers, disabled consumers, and any other consumers with limited mobility have access to the safe and proper collection and management of covered products, including opportunities to have covered products collected.
(d) Include the contact information of each participant producer.
(e) Include a financial section that demonstrates how the producer responsibility organization will comply with Section 48695.40, including, but not limited to, a five-year budget that demonstrates how the producer responsibility organization will comply with subdivision (b) of Section 48695.40.
(f) Include a section describing the producer responsibility organization’s contingency plan in the event the producer responsibility plan expires or is revoked. The contingency plan shall guarantee that all the contracts, financial data, and any other necessary authority and assets to operate the program shall vest in a trustee approved by CalRecycle. The trustee shall operate the most recently approved plan, subject to the direction of CalRecycle, until that time as a new producer responsibility plan is approved. Upon expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organization’s operating reserves collected 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 producer responsibility plan shall be transferred to the control of the trustee within five calendar days.
(g) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the producer responsibility organization. The comprehensive statewide education and outreach program shall do both of the following:
(1) Promote the safe and proper management of a covered product and shall not promote the disposal of a covered product in a manner inconsistent with the services offered by the producer responsibility plan.
(2) Include information for consumers on how to properly manage a covered product at the time of disposal and how to avoid improper disposal of a covered product.
(h) Include a description on how the producer responsibility organization will preserve, leverage, and use existing collection programs and infrastructure.
(i) (1) The plan shall explain how the producer responsibility organization will reconcile reporting data from a producer for a product covered by another stewardship program when any of the following occurs:
(A) A covered product is collected by another stewardship program.
(B) A covered product is reported by a producer to another stewardship program.
(C) A product subject to another stewardship program is collected by the producer responsibility organization.
(D) A product subject to another stewardship program is reported by a producer to the producer responsibility organization.
(2) The plan shall include an agreement with any relevant stewardship organization to effectuate the reconciliation described in paragraph (1).
(j) Describe how a covered product collected from a local jurisdiction will be transported and disposed of if the covered product is not recyclable.
(k) Include a description of how the producer responsibility organization will consult with and mutually agree upon terms and amounts to reimburse local jurisdictions for the proportional costs associated with collecting and managing covered products pursuant to this chapter. The plan shall also include a description of how the producer responsibility organization will contract with haulers to transport covered products from the collection facilities to recycling facilities or disposal, and how the producer responsibility organization will contract with recyclers.
48695.34.
(a) The producer responsibility organization shall review its approved plan at least every five years and determine whether revisions are necessary.(b) If the producer responsibility organization determines that revisions to its approved plan are necessary, the producer responsibility organization shall submit to CalRecycle a revised producer responsibility plan for review and approval using the procedures set forth in Section 48695.30. The producer responsibility organization shall submit the revised producer responsibility plan to CalRecycle at least 12 months before the review deadline outlined in subdivision (a). The revised producer responsibility plan shall include a cover letter that summarizes the revisions to the producer responsibility plan.
(c) If the producer responsibility organization determines that no revisions to the producer responsibility plan are necessary, the producer responsibility organization shall send a letter to CalRecycle 12 months before the review deadline outlined in subdivision (a) explaining that the producer responsibility organization has reviewed the producer responsibility plan and determined that no revisions are needed. CalRecycle may disapprove the producer responsibility organization’s determination within 30 days of receipt of the letter if CalRecycle concludes that the producer responsibility organization cannot implement the objectives of this chapter without revising the producer responsibility plan. If CalRecycle disapproves the producer responsibility organization’s determination, CalRecycle may indicate to the producer responsibility organization which sections of the producer responsibility plan need revision and the producer responsibility organization shall submit to CalRecycle a revised producer responsibility plan, or producer responsibility plan sections, for review and approval, following the procedures set forth in Section 48695.30. The producer responsibility organization shall submit the revised producer responsibility plan pursuant to this subdivision within 60 days of receipt of CalRecycle’s disapproval.
(d) CalRecycle may consult with or submit the revised producer responsibility plan to another state agency or department if CalRecycle determines it is necessary for making its determination. The duration of time CalRecycle takes for this consultation is not included in the time allotted to CalRecycle for review pursuant to this section.
Article 5. Financial Provisions
48695.40.
The producer responsibility organization shall do all of the following:(a) (1) Establish a method for fully funding its producer responsibility plan in a manner that equitably distributes the producer responsibility plan’s costs among participant producers in a manner that reflects sales volumes, adjusted to account for the cost to manage the covered products that each participant producer is responsible for and the relative toxicity of each covered product.
(2) A producer shall not be required to pay for the management of a covered product pursuant to this chapter if the producer has paid for the management of that covered product pursuant to the California Oil Recycling Enhancement Act (Chapter 4 (commencing with Section 48600)).
(b) (1) Operate on a budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how the producer responsibility organization’s estimated revenues will cover all of the producer responsibility organization’s budgeted costs for each cost category. Budgeted cost categories shall include, but not be limited to, administrative costs, capital costs, and a reserve.
(2) Administrative costs shall include the actual and reasonable regulatory costs incurred by CalRecycle and DTSC, which includes full personnel costs, to implement and enforce this chapter, consistent with the regulations described in Section 48695.02. For purposes of this paragraph, producer responsibility organization implementation begins upon approval of its producer responsibility plan, except that costs shall include actual and reasonable regulatory development costs and other startup costs incurred before a producer responsibility plan’s submittal and approval.
(3) The reserve shall include funds to operate the producer responsibility organization if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that 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 description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for not less than six months. When a new producer responsibility organization is approved by CalRecycle, 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. If the producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee pursuant to the portion of the producer responsibility plan described in subdivision (f) of Section 48695.32.
(c) On a schedule determined by CalRecycle, pay CalRecycle fees to cover CalRecycle’s and DTSC’s actual and reasonable regulatory costs, as described in Section 48695.44.
(d) Establish a process by which the financial activities of the producer responsibility organization that are related to implementation of the producer responsibility plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 48695.54.
(e) Provide written certification by an authorized representative of the producer responsibility organization that, at the time of submission to CalRecycle, all aspects of the producer responsibility plan are in compliance with all applicable state and federal laws and regulations.
(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.
(g) Demonstrate how the producer responsibility organization determined sufficient reserves to comply with this chapter.
48695.42.
Each participant producer shall, through the producer responsibility organization, pay all administrative and operational costs associated with establishing and implementing the producer responsibility organization’s approved plan, including the cost of the collection, transportation, and safe and proper management of covered products. These annual administrative and operational costs incurred by the producer responsibility organization will be determined by the governing board, pursuant to Section 48695.20. The costs of developing and adopting regulations, by CalRecycle, shall not exceed 1 percent of the producer responsibility organization’s five-year budget.48695.44.
(a) Within four months of the effective date of the regulations described in Section 48695.02, CalRecycle shall notify the producer responsibility organization of the estimated regulatory costs for CalRecycle and DTSC and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other CalRecycle and DTSC activities that occur before a producer responsibility plan’s submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this chapter. The costs shall not exceed CalRecycle’s and DTSC’s actual and reasonable regulatory costs to implement and enforce this chapter.(b) CalRecycle shall deposit all moneys received from the producer responsibility organization pursuant to this section into the Lubricant Waste and Packaging Producer Responsibility Fund, which is hereby established in the State Treasury.
(c) Upon appropriation by the Legislature, moneys in the Lubricant Waste and Packaging Producer Responsibility Fund shall be expended by CalRecycle to implement and enforce this chapter and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of CalRecycle’s activities pursuant to this chapter.
(d) The moneys in the Lubricant Waste and Packaging Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c).
48695.46.
(a) If the producer responsibility plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with Section 48695.26, then the producer responsibility plan shall describe how the producer responsibility organization will consult with and mutually agree upon terms and amounts to reimburse local jurisdictions for the proportional costs associated with collecting and managing covered products pursuant to this chapter.(b) The producer responsibility plan shall also include a description of how the producer responsibility organization will contract with haulers to transport covered products from the collection facilities to recycling facilities or disposal, and how the producer responsibility organization will contract with recyclers.
Article 6. Records, Audits, and Reports
48695.50.
(a) The producer responsibility organization shall keep board minutes, books, and records that clearly reflect the activities and transactions of the producer responsibility organization for a period of not less than five years.(b) CalRecycle may audit the producer responsibility organization annually.
(c) The failure of the producer responsibility organization, a participant producer, or their respective agent who holds records to produce documents or data that is requested by CalRecycle, required to be collected or generated to carry out operation of the producer responsibility plan in the form and manner determined by CalRecycle as part of a CalRecycle audit, or review of a third-party audit, shall constitute a violation of this chapter.
(d) The producer and the producer responsibility organization may request CalRecycle withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
48695.52.
(a) A producer and the producer responsibility organization shall do both of the following:(1) Upon request, provide CalRecycle with reasonable and timely access to its facilities and operations, as necessary to determine compliance with this chapter.
(2) Within 14 days of a request from CalRecycle, provide CalRecycle with relevant records, as determined by CalRecycle, necessary to determine compliance with this chapter. CalRecycle may grant additional time, not to exceed 60 calendar days, for responding. To determine if an extension of time is warranted, CalRecycle shall take into account, at a minimum, all of the following:
(A) The amount of data requested.
(B) Whether the producer or producer responsibility organization has the data readily available.
(C) Whether the data is necessary to ensure compliance with Section 48695.32.
(D) Whether the producer or producer responsibility organization needs to obtain the data from a third party.
(E) The producer’s or producer responsibility organization’s timely compliance with any previous data requests.
(b) All reports and records provided to CalRecycle pursuant to this chapter shall be provided under penalty of perjury.
(c) CalRecycle may impose administrative civil penalties pursuant to Article 7 (commencing with Section 48695.60) on a producer or producer responsibility organization that fails to provide CalRecycle with the access required pursuant to this section.
48695.54.
(a) The producer responsibility organization shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the producer responsibility organization. CalRecycle shall review the independent certified public accountant’s audit for compliance with this chapter and consistency with the producer responsibility organization’s approved plan and the annual report required by Section 48695.56. After CalRecycle conducts its own review, CalRecycle shall notify the producer responsibility organization of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the review. The producer responsibility organization may obtain copies of CalRecycle’s review, including proprietary information contained in CalRecycle’s review, upon request. The producer or producer responsibility organization may request CalRecycle withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(b) The items submitted to CalRecycle for its review of the independent audit shall include all of the following:
(1) Financial statements audited in accordance with generally accepted accounting principles.
(2) An audit of the producer responsibility organization’s compliance with this chapter.
(3) An audit of the producer responsibility organization’s adherence to, execution of, and consistency with its approved plan.
(c) (1) The producer responsibility organization shall include the independent audit in its annual report submitted to CalRecycle pursuant to Section 48695.56 commencing within 18 months of the producer responsibility plan’s approval by CalRecycle.
(2) The producer or producer responsibility organization may request CalRecycle withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
48695.56.
On or before(a) The producer responsibility organization’s costs, according to the cost categories established in the producer responsibility plan, and revenues.
(b) A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c) Any changes to the distribution of costs to the participant producers.
(d) Updated contact information for participant producers.
(e) The quantity of covered products sold in or into the state by participant producers, as determined by the best available commercial data.
(f) A summary of efforts made to implement all the elements of, and to meet all the metrics and goals of, Section 48695.32, including an evaluation of the effectiveness of the program.
(g) Recommendations for any future proposed substantial changes to the producer responsibility plan.
(h) Any other information required by the regulations described in Section 48695.02.
48695.58.
(a) No later than 120 days after the date CalRecycle receives an annual report pursuant to Section 48695.56, CalRecycle shall notify the producer responsibility organization if the annual report is compliant or noncompliant.(b) If CalRecycle determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, CalRecycle may require the resubmittal of the annual report and take enforcement action.
(c) CalRecycle may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual report’s compliance or noncompliance. The duration of time CalRecycle takes for this consultation shall not be included in the time allotted to CalRecycle for review pursuant to subdivision (a).
Article 7. Enforcement
48695.60.
A retailer, dealer, producer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state unless the producer of the covered product is listed as a compliant producer pursuant to Section 48695.62 or received a certification letter described in subdivision (e) of Section 48695.62.48695.62.
(a) Within 12 months of the effective date of the regulations described in Section 48695.02, and on or before July 1 of each year thereafter, CalRecycle shall publish on CalRecycle’s internet website, a list of the names of producers that are compliant with this chapter. CalRecycle shall list, as appropriate, the reported brands of covered products for each producer.(b) A retailer, producer, or distributor shall monitor CalRecycle’s internet website to determine if a producer, brand, or covered product is in compliance with this chapter.
(c) Notwithstanding any other provision of this chapter, upon identification of a producer that is not registered with the producer responsibility organization with an approved plan, CalRecycle shall issue a notice of noncompliance to the producer.
(d) If CalRecycle determines a producer is not in compliance with this chapter and has verified the noncompliance with the producer responsibility organization, CalRecycle shall remove the producer, and its brands of covered products, from the compliance list on its internet website.
(e) CalRecycle shall provide a certification letter to a producer that is not listed on CalRecycle’s internet website as a compliant producer, but that has demonstrated compliance with this chapter to CalRecycle. The certification letter shall state that the producer is in compliance with this chapter. CalRecycle may update the compliance list on its website.
48695.64.
(a) CalRecycle may administratively impose on the producer responsibility organization or any producer who is in violation of this chapter a civil penalty of up to the following amounts:(1) Ten thousand dollars ($10,000) per day.
(2) Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this chapter, CalRecycle or the court shall consider all of the following:
(1) The nature and extent of the violation.
(2) The number and severity of the violation or violations.
(3) The economic effect of the penalty on the violator.
(4) Whether the violator took good faith measures to comply with this chapter and the period of time over which these noncompliant actions were taken.
(5) The willfulness of the violator’s misconduct.
(6) The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7) Any other factor that justice may require.
(c) Upon a written finding that a producer responsibility organization, producer, or any other party regulated pursuant to this chapter has not met a material requirement of this chapter, in addition to any other penalties authorized pursuant to this chapter, CalRecycle may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the producer responsibility organization, producer, or any other party regulated pursuant to this chapter, an opportunity to respond to or rebut the finding:
(1) Revoke the producer responsibility organization’s approved plan or require the producer responsibility organization to resubmit the producer responsibility plan or producer responsibility plan section.
(2) Require additional reporting relating to compliance with the material requirements of this chapter that were not met.
(d) CalRecycle shall deposit all penalties collected pursuant to this section into the Lubricant Waste and Packaging Penalty Account, which is hereby created in the Lubricant Waste and Packaging Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Lubricant Waste and Packaging Penalty Account shall be available for expenditure by CalRecycle for activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(e) The Administrative Adjudication Bill of Rights (Article 6 (commencing with Section 11425.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code), Code) applies to hearings conducted pursuant to this chapter and mandates minimum due process requirements.
48695.66.
After the time for judicial review under Section 11523 of the Government Code has expired, CalRecycle may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by CalRecycle, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all laws relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.Article 8. Antitrust Immunity
48695.70.
(a) Except as provided in subdivision (b), an action that is taken by a producer or producer responsibility organization is not a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) to the extent the producer or producer responsibility organization is exercising authority pursuant to this chapter.(b) Subdivision (a) applies to all of the following actions taken by a producer responsibility organization:
(1) The creation, implementation, or management of a producer responsibility plan approved by CalRecycle pursuant to Article 4 (commencing with Section 48695.30) and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to the producer responsibility plan.
(2) The determination of the cost and structure of an approved plan.
(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c) Subdivision (a) does not apply to an agreement that does any of the following:
(1) Fixes a price of or for covered products.
(2) Fixes the output or production of covered products.
(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.
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