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AB-1080 Solid waste: packaging and products.(2019-2020)

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Date Published: 09/09/2019 09:37 PM
AB1080:v90#DOCUMENT

Amended  IN  Senate  September 09, 2019
Amended  IN  Senate  September 06, 2019
Amended  IN  Senate  August 14, 2019
Amended  IN  Senate  July 11, 2019
Amended  IN  Senate  July 05, 2019
Amended  IN  Senate  June 20, 2019
Amended  IN  Assembly  May 22, 2019
Amended  IN  Assembly  May 07, 2019
Amended  IN  Assembly  March 19, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 1080


Introduced by Assembly Members Gonzalez, Calderon, Friedman, and Ting
(Principal coauthor: Assembly Member Bloom)
(Principal coauthor: Senator Allen)
(Coauthors: Assembly Members Boerner Horvath, Carrillo, Kalra, Kamlager-Dove, McCarty, Muratsuchi, Luz Rivas, and Wicks)
(Coauthors: Senators Lena Gonzalez, Hueso, Skinner, Stern, Wieckowski, and Wiener)

February 21, 2019


An act to amend Section 23671 of the Business and Professions Code, and to add Chapter 3 (commencing with Section 42040) to Part 3 of Division 30 of, and to add and repeal Chapter 6 (commencing with Section 48710) of Part 7 of Division 30 of, the Public Resources Code, relating to solid waste.


LEGISLATIVE COUNSEL'S DIGEST


AB 1080, as amended, Gonzalez. Solid waste: packaging and products.
(1) The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste, including, among other solid waste, single-use plastic straws.
The Sustainable Packaging for the State of California Act of 2018 prohibits a food service facility located in a state-owned facility, operating on or acting as a concessionaire on state property, or under contract to provide food service to a state agency from dispensing prepared food using a type of food service packaging unless the type of food service packaging is on a list that the department publishes and maintains on its internet website that contains types of approved food service packaging that are reusable, recyclable, or compostable.
Existing law makes a legislative declaration that it is the policy goal of the state that not less than 75% of solid waste generated be source reduced, recycled, or composted by 2020.
This bill would enact the California Circular Economy and Pollution Reduction Act, which would impose a comprehensive regulatory scheme on producers, retailers, and wholesalers of single-use packaging, as defined, and priority single-use products, as defined, to be administered by the department. As part of that regulatory scheme, the bill would require the department, before January 1, 2024, to adopt regulations that require producers, as defined, (1) to source reduce, to the maximum extent feasible, single-use packaging and priority single-use products, and (2) to ensure that all single-use packaging and priority single-use products that are manufactured on or after January 1, 2030, and that are offered for sale, sold, distributed, or imported in or into California are recyclable or compostable. The bill would require the regulations to achieve and maintain, by January 1, 2030, a statewide 75% reduction of the waste generated from single-use packaging and priority single-use products offered for sale, sold, distributed, or imported in or into the state through source reduction, recycling, or composting. The bill would authorize the department to determine which actions producers may undertake to achieve those requirements. The bill would require the department, by January 1, 2023, and before adopting the regulations, to finalize an implementation plan, as specified. The bill would require the department to establish a Circular Economy and Waste Pollution Reduction Panel for the purpose of identifying barriers and solutions to creating a circular economy consistent with the act. The regulatory scheme would include, among other requirements, registration, reporting, and recordkeeping requirements. The bill would require reports and data provided to the department pursuant to the act to be accurate and attested to under penalty of perjury, thereby imposing a state-mandated local program by expanding the crime of perjury. The bill would prohibit a retailer or wholesaler, as defined, from offering for sale or selling single-use packaging, products packaged in single-use packaging, or priority single-use products if the producer of the single-use packaging or priority single-use product is listed as noncompliant on the department’s internet website on a list that the bill would require the department to post, as specified.
The bill would require the department to develop criteria to determine whether the packaging or priority single-use products are reusable, recyclable, or compostable. The bill would authorize local governments, solid waste facilities, recycling facilities, and composting facilities to provide information requested by the department for purposes of developing that criteria.
The bill would require single-use packaging and priority single-use products offered for sale, sold, distributed, or imported in or into California by a producer to meet specified recycling rates that are based on date of manufacture and that increase over a prescribed timeframe, and would authorize the department to impose a higher or lower recycling rate, as specified. The bill would require the department to establish, update, and post on its internet website a list of packaging and product categories, and recycling rates for those packaging and product categories, as specified.
The bill would authorize producers, if the department adopts specified regulations authorizing the establishment of a stewardship program, to collectively form a stewardship organization that adopts a stewardship plan, as an alternative to individually complying with the above-referenced comprehensive regulatory scheme. The bill would require the department to establish, and a producer to pay, the California circular economy regulatory fee. The bill would require the department to set the amount of the fee at no more than is necessary for the regulatory costs of the above-referenced comprehensive regulatory scheme and stewardship program, and would require a stewardship organization to pay the regulatory fee on behalf of its member producers, as specified.
The bill would require the department to report to the Legislature every 3 years its progress in implementing the act’s provisions.
The bill would provide for exceptions to, and enforcement of, the act, including authorizing the department to impose an administrative civil penalty in an amount not to exceed $50,000 per day per violation on an entity that is not in compliance with the act’s requirements.
(2) The California Integrated Waste Management Act of 1989 requires each city and county, and each regional agency formed pursuant to the act, to develop a source reduction and recycling element of an integrated waste management plan to divert 50% of all solid waste, through source reduction, recycling, and composting activities.
This bill would prohibit a city, county, city and county, or other local public agency from requiring a grocery store, as defined, to use a certain type of food packaging for any food sold in the grocery store unless the majority of residential households within the jurisdiction of the local agency have access to a curbside program, as defined, that accepts the material from which that food packaging is made. The bill would also prohibit those local agencies from requiring a grocery store to use a food packaging container that does not meet specified criteria. The bill would repeal these provisions as of January 1, 2030.
(3) The Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the granting of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state. The act requires an out-of-state vendor shipping beer into the state to hold a certificate of compliance granted by the department, as prescribed. The act authorizes the department to suspend or revoke the certificate of compliance, as specified, if an out-of-state-vendor after obtaining the certificate fails to submit a certain monthly report or fails to comply with a particular provision of the California Beverage Container Recycling and Litter Reduction Act.
This bill would authorize the department to suspend or revoke the certificate of compliance of an out-of-state vendor that fails to comply with the provisions of the California Circular Economy and Pollution Reduction Act.

(3)

(4) 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)

(5) 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 Section 23671 of the Business and Professions Code is amended to read:

23671.
 (a) No beer importer shall purchase any beer not manufactured within the state or cause any beer to be transported into the state for sale in the state, unless the out-of-state vendor making shipment of the beer into the state holds a certificate of compliance issued by the department. A certificate of compliance shall be granted when the out-of-state vendor makes a written agreement with the department to furnish to the board, on or before the 10th day of each month, a report on a form prescribed by the board, showing the quantity of beer shipped by the out-of-state vendor to each licensed beer importer in this state during the preceding month. The out-of-state vendor shall further agree that it and its agents and all agencies within this state controlled by it will comply with all laws of this state and all rules of the department with respect to the sale of alcoholic beverages, including, but not limited to, Chapter 12 (commencing with Section 25000) of Division 9, and Section 25509, to the same extent as licensees.

If

(b) If any out-of-state vendor, after obtaining the certificate, fails to submit the report or report, fails to comply with Section 14575 of the Public Resources Code, or fails to comply with the provisions of Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code, the department may suspend or revoke the certificate of compliance in the manner provided for the suspension or revocation of licenses, and after a hearing which shall be held in the City of Sacramento or in any other county seat in this state which the department determines to be convenient to the holder of the certificate. No fee shall be charged for the certificate of compliance which shall remain in effect until revoked by the department.

SECTION 1.SEC. 2.

 Chapter 3 (commencing with Section 42040) is added to Part 3 of Division 30 of the Public Resources Code, to read:
CHAPTER  3. California Circular Economy and Pollution Reduction Act
Article  1. General Provisions

42040.
 This chapter shall be known, and may be cited, as the California Circular Economy and Pollution Reduction Act.

42041.
 (a) The Legislature finds and declares all of the following:
(1) Annual global production of plastic has reached 335 million tons and continues to rise. The United States alone discards 30 million tons each year. Global plastic production is projected to more than triple by 2050, accounting for 20 percent of all fossil fuel consumption.
(2) Without action, projections estimate that by 2050 the mass of plastic pollution in the ocean will exceed the mass of fish. A study by the University of Exeter and Plymouth Marine Laboratory in the United Kingdom found plastics in the gut of every single sea turtle examined and in 90 percent of seabirds. Additionally, plastic negatively affects marine ecosystems and wildlife, as demonstrated by countless seabirds, turtles, and marine mammals, including, but not limited to, whales and dolphins, dying from plastic ingestion or entanglement.
(3) Based on data from the United States Environmental Protection Agency, Institute of Scrap Recycling Industries trade statistics, and industry news source Resource Recycling, the national recycling rate for plastic is projected to sink from 9.1 percent in 2015 to 4.4 percent in 2018, and could drop to 2.9 percent in 2019. Even in California, less than 15 percent of single-use plastic is recycled.
(4) Before 2017, the United States was sending 4,000 shipping containers a day full of American waste to China every year, including two-thirds of California’s recyclable materials. However, China has implemented the Green Fence, National Sword, and Blue Sky policies, severely restricting the amount of contaminated and poorly sorted plastics it would accept. This shift in China’s policy has resulted in the loss of markets for low-value plastic packaging that was previously considered recyclable. That material is now being landfilled or burned.
(5) Additionally, the foreign market for recycled paper has collapsed in California. Foreign exports of mixed paper fell from over 400,000 tons in the first quarter of 2017 to just 136,000 tons in the first quarter of 2018. The price of mixed paper fell from ninety-five dollars ($95) per ton to just ten dollars ($10) a ton in the same timeframe.
(6) The loss of markets for recyclable material has added huge costs to local governments for the disposal and diversion of material. For many cities, counties, and waste haulers in California, recycling has turned from a profitable business into an activity that actually costs local governments money. These costs are being absorbed by city general funds or by rate increases on residents for waste collection.
(7) The environmental and public health impacts of plastic pollution are devastating and the environmental externalities and public costs of cleaning up and mitigating plastic pollution are already staggering and continue to grow.
(8) Local governments in California annually spend in excess of four hundred twenty million dollars ($420,000,000) in ongoing efforts to clean up and prevent plastic and other litter from entering our rivers and streams and polluting our beaches and oceans.
(9) Evidence now shows that even our own food and drinking water sources are contaminated with plastic. Microplastics have been found in tap water, bottled water, table salt, and fish and shellfish from local California fish markets. A growing body of research is finding plastic and associated toxins throughout the food web, including in our blood, feces, and tissues. Exposure to these toxins has been linked to cancers, birth defects, impaired immunity, endocrine disruption, and other ailments.
(10) It is the policy goal of the state that not less than 75 percent of solid waste generated be source reduced, recycled, or composted by the year 2020. However, as of 2017, the state was only on track to reach 44 percent, falling far short of this important goal. Additionally, the state has done little to require businesses to reduce the amount of packaging and single-use product waste they generate in California.
(11) As the fifth largest economy in the world, California has a responsibility to lead on solutions to the growing plastic pollution crisis, and to lead in the reduction of unnecessary waste generally.
(12) Further, businesses selling products into California have a responsibility to ensure that their packaging and products are minimizing waste, including ensuring materials used are reusable, recyclable, or compostable. This responsibility includes paying for the cost of the negative externality of recovery for materials they sell in California.
(b) (1) Consistent with the policy goal established in Section 41780.01, it is the intent of the Legislature that, by 2030, producers of single-use products that are not priority single-use products achieve and maintain a statewide 75-percent reduction of the waste generated from single-use products offered for sale, sold, distributed, or imported in or into the state that are not priority single-use products through source reduction, recycling, or composting.
(2) In accordance with paragraph (1), it is the intent of the Legislature that producers of single-use products that are not priority single-use products do all of the following for single-use products that are not priority single-use products:
(A) Source reduce those products, and transition those products to reusable products, to the maximum extent feasible.
(B) Ensure those products are recyclable or compostable, as determined by the department pursuant to Section 42052.
(C) For single-use plastic products that are not priority single-use products and that are offered for sale, sold, distributed, or imported in or into California, reduce waste generation by 75 percent through combined source reduction and recycling.
(c) It is the intent of the Legislature that any deposit-based mechanism identified pursuant to clause (ii) of subparagraph (B) of paragraph (2) of subdivision (b) of Section 42050 or implemented as a corrective action pursuant to paragraph (2) of subdivision (a) of Section 42061 ensures that consumers can conveniently receive a refund for returning single-use packaging or priority single-use products.

42042.
 (a) For purposes of this chapter, all of the following shall apply:
(1) “California circular economy regulatory fee” means the fee imposed by the department pursuant to Section 42080.
(2) “Packaging” means the material 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:
(A) Sales packaging or primary packaging intended to constitute a sales unit to the consumer at point of purchase and most closely contains the product, food, or beverage.
(B) Grouped packaging or secondary packaging intended to brand or display the product.
(C) Transport packaging or tertiary packaging intended to protect the product during transport.
(3) “Packaging category” means a packaging material category on the list published by the department pursuant to subdivision (c) of Section 42054.
(4) “Priority single-use products” means single-use food service ware, including plates, bowls, cups, utensils, stirrers, and straws.
(5) “Product category” means a priority single-use product material category on the list published by the department pursuant to subdivision (c) of Section 42054.
(6) (A) “Producer” means the person who manufactures the single-use packaging or priority single-use product under that person’s own name or brand and who sells or offers for sale the single-use packaging or priority single-use product in the state.
(B) If there is no person who is the producer of the single-use packaging or priority single-use products for purposes of subparagraph (A), the producer is the person who imports the single-use packaging or priority single-use product as the owner or licensee of a trademark or brand under which the single-use packaging or priority single-use product is sold or distributed in the state.
(C) If there is no person who is the producer for purposes of subparagraphs (A) and (B), the producer is the person or company that offers for sale, sells, or distributes the single-use packaging or priority single-use product in the state.
(D) Notwithstanding subparagraphs (A) to (C), inclusive, for beer and malt beverages manufactured outside of the state “producer” means the person named on the certificate of compliance issued pursuant to Section 23671 of the Business and Professions Code.
(7) “Retailer or wholesaler” means the person who sells the single-use packaging, product packaged in single-use packaging, or priority single-use product in the state or offers to consumers the single-use packaging, product packaged in single-use packaging, or priority single-use product 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.
(8) (A) “Single-use packaging” means the packaging of a product when the packaging is routinely recycled, disposed of, or discarded after its contents have been used or unpackaged, and typically not refilled by the producer.
(B) Single-use packaging does not include any of the following:
(i) Reusable packaging, as determined by the department pursuant to Section 42052.
(ii) Packaging containing toxic or hazardous products regulated by the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).
(iii) Plastic packaging containers that are manufactured for use in the shipment of hazardous materials and are prohibited from being manufactured with used material by federal packaging material specifications set forth in Sections 178.509 and 178.522 of Title 49 of the Code of Federal Regulations.
(iv) Until January 1, 2026, beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500)).
(9) “Source reduction” includes, but is not limited to, transitioning single-use packaging or a priority single-use product to refillable or reusable packaging or a reusable product. Source reduction does not include replacing a recyclable or compostable material with a nonrecyclable or noncompostable material or a material that is less likely to be recycled or composted, and does not include a shift from a nonplastic material that currently is recyclable or compostable to plastic material.
(10) “Unexpended funds” means money in a stewardship organization’s accounts that the stewardship organization is not already obligated to pay pursuant to a contract, claim, or similar mechanism. “Unexpended funds” excludes regulatory fees.
(b) For purposes of this chapter, all of the following shall not be considered single-use packaging or priority single-use products:
(1) Medical products. products, as well as products defined as medical devices and prescription drugs as specified in the federal Food, Drug, and Cosmetic Act (21 U.S.C. Secs. 321(h) and (g), and Sec. 353(b)(1)).

(2)Products defined as medical devices pursuant to Section 321(h) of Title 21 of the United States Code.

(3)Products defined as prescription drugs pursuant to Section 321(g) or 353(b)(1) of Title 21 of the United States Code.

(4)

(2) Drugs that are used for animal medicines, including, but not limited to, parasiticide products for animals.

(5)

(3) Infant formula that would fall under the exclusion described in Section 350(a)(2) formula, as defined in Section 321(z) of Title 21 of the United States Code.

(6)

(4) Medical food as defined pursuant to Section 360ee(b)(3) of Title 21 of the United States Code.

(7)

(5) Fortified oral nutritional supplements used for persons who require supplemental or sole source nutrition to meet nutritional needs or who have due to special dietary needs directly related to cancer, chronic kidney disease, diabetes, or other medical conditions as determined by the department.

(8)

(6) Packaging used for a product listed in paragraphs (1) to (7), (5), inclusive.

Article  2. Single-use Packaging and Priority Single-use Products

42050.
 (a) Before January 1, 2024, the department shall, in consultation with relevant state agencies with jurisdiction relevant to this chapter and local jurisdictions and regional agencies charged with meeting waste diversion goals, adopt regulations that do all of the following:
(1) (A) Require producers of single-use packaging to source reduce single-use packaging to the maximum extent feasible.
(B) Require producers of single-use packaging to ensure that all single-use packaging manufactured on or after January 1, 2030, and that is offered for sale, sold, distributed, or imported in or into California is recyclable or compostable as determined by the department pursuant to Section 42052.
(2) (A) Require producers of priority single-use products to source reduce priority single-use products to the maximum extent feasible.
(B) Require producers of priority single-use products to ensure that priority single-use products manufactured on or after January 1, 2030, and that are offered for sale, sold, distributed, or imported in or into California are recyclable or compostable as determined by the department pursuant to Section 42052.
(3) Achieve and maintain, by January 1, 2030, through the regulations adopted by the department and implemented by producers pursuant to this chapter, a statewide 75-percent reduction of the waste generated from single-use packaging and priority single-use products offered for sale, sold, distributed, or imported in or into the state through source reduction, recycling, or composting.
(4) Require producers to comply with the requirements of this chapter and its implementing regulations.
(b) (1) By January 1, 2023, and before adopting the regulations, in order to increase the opportunity for public participation and to receive comments, the department shall finalize an implementation plan for meeting the requirements of this chapter.
(2) As part of the implementation plan, the department shall do all of the following:
(A) Conduct extensive outreach to stakeholders and to state and local agencies with jurisdiction relevant to this chapter, including, but not limited to, the state’s waste diversion, climate, water quality, public health, and air quality goals, and the state’s toxic substances regulation. This outreach shall include, but is not limited to, convening a series of public workshops throughout the state to give interested parties an opportunity to comment and a series of stakeholder meetings designed to facilitate dialogue between stakeholders representing different interest groups such as local governments, the solid waste and recycling industries, product and packaging manufacturers, retailers and wholesalers, trade associations, and environmental organizations. These meetings shall be held throughout the state to increase the opportunity for participation and shall inform the development of regulations pursuant to this section.
(B) Evaluate all of the following:
(i) Incentives and policies to maximize and encourage in-state manufacturing using recycled material generated in California and the development of reusable packaging and products.
(ii) Economic mechanisms to reduce the distribution of single-use packaging and priority single-use products or to transition single-use packaging and priority single-use products to reusable alternatives and increase the recyclability or compostability of single-use packaging and priority single-use products. These economic mechanisms may include, but are not limited to, allowing producers to establish and operate a collection and deposit program, assess a generation-based fee, an advanced recycling fee, pay as you throw fees, or extended producer responsibility for single-use packaging and priority single-use products.
(iii) Avoiding the litter, export, or improper disposal of single-use packaging, priority single-use products, and other materials likely to harm the environment or public health in California or elsewhere in the world.
(iv) Labeling requirements regarding the recyclability, compostability, or reusability of packaging and priority single-use products. Labeling requirements may include criteria for packaging to be labeled “recyclable,” “compostable,” “reusable,” or “refillable” based on factors including, but not limited to, whether the packaging or product can be readily recycled, composted, or reused and whether the packaging or product is likely to contaminate other recyclable or compostable material or complicate processing. In developing labeling requirements, the department shall consider national and international labeling standards and systems.
(v) Possible options for producers to implement the requirements of this chapter and reduce packaging and product waste, including, but not limited to, through implementation of effective and convenient take-back opportunities, deposit systems, reusable and refillable delivery systems, designing for recyclability or compostability, advanced disposal fees, incentive programs, or similar mechanisms. The department may allow producers to implement extended producer responsibility programs, where appropriate, consistent with the requirements of Article 4 (commencing with Section 42070).
(vi) Actions identified through the California Ocean Litter Prevention Strategy and the Statewide Microplastics Strategy.
(vii) Establishing criteria for the source reduction requirements specified in subdivision (a) and to inform the checklist specified in paragraph (3) of subdivision (h). Consideration shall include reducing weight, volume, or quantity of single-use packaging and priority single-use product material in a way that does not decrease the ability of the material to be recycled or reused.
(viii) Establishing minimum postconsumer recycled content requirements for a packaging or product category, where appropriate, in order to create or enhance markets for recycled material.
(ix) How to address technological innovations and new packaging materials or categories.
(C) Consider and provide recommendations on whether to transition or sunset existing recycling programs.
(D) Identify all of the following:
(i) Opportunities to improve and expand waste collection and processing capabilities and infrastructure, including the use of innovative new recycling and reuse technologies and secondary material recovery facilities.
(ii) Opportunities to harmonize local waste, recycling, and composting programs among local jurisdictions and barriers to cooperation and standardization of programs.
(iii) Opportunities for encouraging the use of reusable or refillable packaging.
(iv) Opportunities for public education efforts to increase recycling and composting of single-use packaging and priority single-use products and reducing litter from these items.
(v) Potential end-use markets for collected materials and policies required to stimulate domestic markets.
(vi) Opportunities for incentivizing and increasing consumer recycling.
(vii) Discussion for identifying and conducting outreach to producers.
(c) (1) The department may identify single-use packaging or priority single-use products that, while determined to be single use for purposes of this chapter, present unique challenges in complying with this chapter.
(2) For any packaging or products identified as presenting unique challenges, the department may at any point develop a plan to phase the packaging or products into the regulations.
(d) The department shall ensure that any regulations adopted pursuant to this chapter account for guidelines and regulations issued by the United States Food and Drug Administration.
(e) If the department determines at any point a type of single-use packaging or priority single-use product cannot comply with this chapter due to health and safety reasons, or because it is unsafe to recycle, the department may exempt that packaging or product from this chapter.
(f) The regulations shall establish a baseline for the 75-percent waste reduction requirement in subdivision (a) for each packaging and product category based on waste characterization studies undertaken by the department, and any other information received by the department.
(g) (1) Producers shall do both of the following:
(A) Register with the department.
(B) Report any data to the department that the department deems necessary to determine compliance with this chapter in a form, manner, and frequency determined by the department.
(2) Any confidential or proprietary market sensitive data received by the department pursuant to this chapter shall be held confidentially by the department as required by Section 40062 and any implementing regulations.
(3) The department shall create an online registration form to facilitate submitting reports pursuant to this subdivision.
(4) Producers shall submit the information required by the department pursuant to paragraph (1) using the format established by the department pursuant to paragraph (3).
(5) The department’s regulations shall establish appropriate timelines to begin reporting following the adoption of regulations. The department shall consider the amount of information being reported in developing the timelines.
(h) (1) The department’s regulations shall include direct source reductions of single-use packaging and priority single-use products to the maximum extent feasible, in accordance with this section.
(2) The department may consider single-use packaging and priority single-use product reductions achieved by a producer before the effective date of the regulations if the producer can demonstrate to the satisfaction of the department that the producer reduced the single-use packaging or priority single-use product in a manner consistent with this chapter.
(3) (A) The department shall develop a checklist of source reduction measures, and a producer that complies with all applicable measures on the checklist shall be in compliance with the requirement to source reduce to the maximum extent feasible pursuant to subdivision (a). The department shall also offer guidance on how to use the checklist as a means of complying with subdivision (a). The checklist measures may include, but are not limited to, ensuring the single-use packaging or priority single-use product remains recyclable or compostable, right-sizing products, eliminating excess packaging, compliance with internal or third-party certified packaging design guidelines, concentrating a product to reduce packaging, and transitioning to reusable alternatives where those alternatives are readily available.
(B) To determine which source reduction measures to include in the checklist, the department shall consider which single-use packaging and priority single-use products are prone to become litter, have readily available alternatives, make up a significant portion of the waste stream, or have established, or have the potential for, recycling or composting infrastructure.
(C) The checklist shall incorporate considerations that assist the department in evaluating whether it is feasible for a producer to implement one or more of the checklist source reduction measures, including product protection and integrity, consumer safety, shelf life, compatibility with distribution systems, and other relevant factors as the department deems appropriate.
(4) When establishing the source reduction measures, the department shall avoid incentivizing substitutions that may have a more substantial negative impact on the environment.
(5) In developing the regulations, the department shall count a producer’s source reductions achieved to comply with Chapter 5.5 (commencing with Section 42300) toward compliance with this chapter.
(6) If the department believes a producer has not met its obligation to source reduce to the maximum extent feasible, or if the department believes additional source reduction is feasible when the producer believes it is not, then the producer shall be given an opportunity to explain any relevant factors that would limit its ability to meet its obligation or implement additional source reduction measures.
(i) If the department determines that early actions to source reduce certain single-use packaging and priority single-use products can further the purposes of this chapter, the department may adopt regulations to achieve those reductions. If the department adopts regulations pursuant to this subdivision, the department shall report that action to the Legislature in the next report submitted pursuant to Section 42060.
(j) In developing the regulations, the department shall consider relevant information on reduction programs and approaches in other states, localities, and nations, including, but not limited to, the European Union, India, Costa Rica, and Canada, and international standards, including, but not limited to, ISO 18602.
(k) The department may determine which actions producers may undertake to achieve the requirements of subdivision (a) based on packaging or product category.
(l) In adopting regulations pursuant to this section, the department shall consider and avoid disproportionate impacts to low-income or disadvantaged communities.
(m) The department shall not impose a recycled content requirement or any other requirement in direct conflict with a federal law or regulation, including, but not limited to, laws or regulations covering tamper-evident packaging pursuant to Section 211.132 of Title 21 of the Code of Federal Regulations and Regulations, laws or regulations covering child-resistant packaging pursuant to Part 1700 of Subchapter E of Chapter II of Title 16 of the Code of Federal Regulations. Regulations, or requirements for microbial contamination, structural integrity, or safety of packaging under the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.), 21 U.S.C. Sec. 2101 et seq., the federal FDA Food Safety Modernization Act (21 U.S.C. Sec. 2201 et seq.), or the regulations, rules, or guidance issued pursuant to those laws.
(n) The department shall develop criteria for exemptions from the requirements of this chapter for small producers, retailers, and wholesalers.
(o) The department shall establish criteria for allowing producers to comply with the requirements of this chapter through contractual arrangements with third parties that do not otherwise meet the definition of producer in subparagraph (A) of paragraph (6) of subdivision (a) of Section 42042. The criteria shall not limit the department’s ability to enforce or otherwise implement this chapter.

42051.
 (a) The department may adopt emergency regulations to implement and enforce all of the following:
(1) Subdivision (g) of Section 42050.
(2) Subdivision (i) of Section 42050.
(3) Subdivisions (c) and (d) of Section 42054.
(4) Section 42055.
(5) Section 42080.
(b) Emergency regulations adopted pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for the purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, any emergency regulations adopted by the department pursuant to this section shall be filed with, but not be repealed by, the Office of Administrative Law and shall remain in effect for a period of two years or until revised by the department, whichever occurs sooner.

42052.
 (a) In adopting regulations pursuant to Section 42050, the department shall develop criteria to determine whether the packaging or priority single-use products are reusable, recyclable, or compostable.
(b) (1) For purposes of determining if single-use packaging or priority single-use products are recyclable, the director shall consider, at a minimum, all of the following criteria:
(A) Whether the single-use packaging or priority single-use product is eligible to be labeled as “recyclable” in accordance with the uniform standards contained in Article 7 (commencing with Section 17580) of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code.
(B) Whether the single-use packaging or priority single-use product is regularly collected, separated, and cleansed for recycling by recycling service providers.
(C) Whether the single-use packaging or priority single-use product is regularly sorted and aggregated into defined streams for recycling processes.
(D) Whether the single-use packaging or priority single-use product is regularly processed and reclaimed or recycled with commercial recycling processes.
(E) Whether the single-use packaging or priority single-use product material regularly becomes feedstock that is used in the production of new products.
(F) Whether the single-use packaging or priority single-use product material is recycled in sufficient quantity, and is of sufficient quality, to maintain a market value.
(2) For purposes of determining if single-use packaging or priority single-use products are recyclable, the director shall consider the regulations adopted pursuant to Article 10.4 (commencing with Section 25214.11) of Chapter 6.5 of Division 20 of the Health and Safety Code.
(3) For purposes of determining if single-use packaging or priority single-use products are recyclable, de minimis amounts of nonrecycable material of more than 3 percent of the total weight or volume of the single-use packaging or priority single-use product material is acceptable when the nonrecyclable material is required for the proper delivery, safety, sterility, stability, or use of the product or the product contained within the packaging. If the nonrecyclable material negatively affects the recyclability of the product or packaging, the material shall not be considered de minimis.
(c) For purposes of determining if single-use packaging or priority single-use products are compostable, the director shall consider, at a minimum, all of the following criteria:
(1) Whether the single-use packaging or priority single-use product will, in a safe and timely manner, break down or otherwise become part of usable compost that can be composted in a public or private compost facility designed for and capable of processing postconsumer food waste and food-soiled paper.
(2) Whether the single-use packaging or priority single-use product made from plastic is certified to meet the ASTM standard specification identified in either subparagraph (A) or (C) of paragraph (1) of subdivision (b) of Section 42356 and adopted in accordance with Section 42356.1, if applicable.
(3) Whether the single-use packaging or priority single-use product is regularly collected and accepted for processing at public and private compost facilities.
(4) Whether the single-use packaging or priority single-use product is eligible to be labeled as “compostable” in accordance with the uniform standards contained in Article 7 (commencing with Section 17580) of Chapter 1 of Part 3 of Division 7 of the Business and Professions Code.
(d) For purposes of determining if packaging or a priority single-use product is reusable, the department shall consider, at a minimum, both of the following criteria:
(1) Whether the packaging or priority single-use product is conventionally disposed of after a single use.
(2) Whether the packaging or priority single-use product is sufficiently durable, washable, and intended for multiple refills of the original product to allow for multiple uses.
(e) (1) In implementing this section, the department may consult with local governments and representatives of the solid waste industry, the recycling industry, the reuse industry, the compost industry, and single-use product and packaging manufacturers to determine if a type of packaging or priority single-use product is recyclable, reusable, or compostable.
(2) Local governments, solid waste facilities, recycling facilities, and composting facilities may provide information requested by the department pursuant to paragraph (1) to the department.

42053.
 (a) In implementing this chapter, the department shall establish a Circular Economy and Waste Pollution Reduction Panel for the purpose of identifying barriers and solutions to creating a circular economy consistent with this chapter. The panel shall be composed of one or more members from each of the following disciplines, with equal representation from each discipline:
(1) Local government.
(2) Waste management.
(3) Environmental health or sustainability.
(4) Product or packaging manufacturing.
(5) Product or packaging design.
(6) Recyclers.
(b) The department shall appoint all members to the panel on or before January 1, 2021. The department shall appoint the members for staggered three-year terms, and may reappoint a member for additional terms, without limitation.
(c) The panel shall meet as often as the department deems necessary, with consideration of available resources, but not less than twice each year. The department shall provide for staff and administrative support to the panel.
(d) The panel meetings shall be open to the public and are subject to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).
(e) The panel shall provide the department with initial recommendations regarding key barriers and possible solutions to advance the objectives of increasing recovery of packaging and product materials and decreasing the leakage of plastic into the environment no later than one year after the panel’s initial meeting. The department shall consider these recommendations as it evaluates what specific actions may be appropriate to advance the objectives of this chapter.
(f) The panel may take any of the following actions through written recommendations as the panel deems appropriate:
(1) Advise the department on technical matters in support of the goals of this chapter to create a circular economy and reduce product and packaging pollution.
(2) Advise the department in the adoption of the implementation plan and regulations required by this chapter.
(3) Advise the department on any other pertinent matter in implementing this chapter, as determined by the panel or department.
(g) The panel shall submit written recommendations to the department only if a majority or more of the panel’s members endorse the recommendation. One or more panel members that do not endorse the recommendation may submit a separate written recommendation to the department reflecting the minority opinion or opinions.

42054.
 (a) Single-use packaging and priority single-use products offered for sale, sold, distributed, or imported in or into California by a producer shall meet the following recycling rates:
(1) On and after January 1, 2026, not less than 30 percent for single-use packaging and priority single-use products manufactured on or after January 1, 2026.
(2) On and after January 1, 2028, not less than 40 percent for single-use packaging and priority single-use products manufactured on or after January 1, 2028.
(3) On and after January 1, 2030, not less than 75 percent for single-use packaging and priority single-use products manufactured on or after January 1, 2030.
(b) (1) Notwithstanding subdivision (a), the department may, subject to paragraph (3), impose a higher or lower recycling rate for single-use packaging or priority single-use products as needed to achieve the requirements established in Section 42050.
(2) Commencing in 2024, and every two years thereafter, the department shall review, in consultation with the panel created pursuant to Section 42053, relevant data to assess whether the recycling rate required in subdivision (a) should be adjusted. The department shall make its determination and rationale available for public review.
(3) If the department determines pursuant to a review under paragraph (2) that current unforeseen and anomalous market conditions, including, but not limited to, recycling infrastructure conditions, warrant an adjustment to the recycling rates required in subdivision (a), the department may impose a higher or lower recycling rate subject to the following conditions:
(A) The recycling rate shall not be adjusted by more than 10 percent of what is required in subdivision (a).
(B) The adjusted recycling rate shall be in effect for no more than two years.
(c) (1) Before adopting the implementation plan or regulations, the department shall establish and post on its internet website a list of packaging and product categories of single-use packaging and priority single-use products.
(2) The department may consider material types and form referenced in waste characterization studies for determining the packaging and product categories.
(d) (1) The department shall calculate and publish on its internet website the recycling rates for each packaging and product category no later than January 1, 2025. These recycling rates shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.
(2) In determining a recycling rate, the department may consider data gathered pursuant to any of the following:
(A) Chapter 746 of the Statutes of 2015.
(B) Chapter 6 (commencing with Section 42370).
(C) Chapter 395 of the Statutes of 2016.
(D) Chapter 5.5 (commencing with Section 42300).
(E) Division 12.1 (commencing with Section 14500).
(F) Data voluntarily provided by local jurisdictions.
(G) Data and information received from producers.
(H) Any other relevant data and information received by the department.
(3) The department shall determine and post on its internet website whether each packaging and product category recycling rate complies with the recycling rates required pursuant to this section.
(4) For purposes of determining the recycling rate, the department shall include single-use packaging and priority single-use products that are recycled or composted.
(5) A producer may demonstrate compliance with subdivision (a) or (b) by submitting to the department evidence that the particular type of single-use packaging or priority single-use product meets the applicable recycling rate threshold established in subdivision (a) or (b) by reference to a recycling rate on the department’s list or through another mechanism approved by the department.
(6) The department shall update the list at least every two years and shall regularly, but no less than once every two years, evaluate the list of recycling rates to determine whether the recycling rates are still accurate. After evaluation, the department may amend the list to remove, add, or change recycling rates. The department shall post any updates to the list on its internet website.
(7) A producer that seeks to have a recycling rate included or changed on the list, or a packaging or product category added to the list, may be required by the department to submit data for purposes of the department’s determination of the recycling rate to include on the list.
(8) Development of, publication of, and updates made to the list pursuant to this subdivision are exempt from Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

42054.1.
 The department shall post on its internet website a list of compliant producers that are in compliance with this chapter and a list of noncompliant producers that are not in compliance with this chapter. The department shall update the list at least once every six months.

42055.
 (a) A retailer and wholesaler shall register with the department and do both of the following:
(1) Report to the department the producers that provide the retailer or wholesaler with single-use packaging, products packaged in single-use packaging, or priority single-use products.
(2) Not offer for sale or sell single-use packaging, a product packaged in single-use packaging, or a priority single-use product if the producer of the single-use packaging or priority single-use product is listed as noncompliant on the department’s internet website pursuant to Section 42054.1.
(b) The department may require electronic registration and reporting by retailers and wholesalers.

42056.
 (a) In complying with this chapter, producers, retailers, and wholesalers shall do all of the following:
(1) Upon request, provide the department with reasonable and timely access to its facilities and operations, as necessary to determine compliance with this chapter.
(2) Upon request, provide the department with relevant records necessary to determine compliance with this chapter.
(b) Provide required reports and data that are accurate and attested to under penalty of perjury as required by the department.

Article  3. Implementation and Enforcement

42060.
 The department shall report to the Legislature in compliance with Section 9795 of the Government Code every three years its progress in implementing this chapter. The implementation plan required by Section 42050 shall constitute a report for the purposes of this section.

42061.
 (a) (1) The department may issue a notice of violation to and impose an administrative civil penalty not to exceed fifty thousand dollars ($50,000) per day per violation on any entity not in compliance with this chapter or any of the regulations the department adopts to implement this chapter.
(2) Before determining whether or not to assess a penalty, the department may require a producer to develop and submit a corrective action plan to the department detailing how the producer will come into compliance with this chapter. Corrective action plans may include, but are not limited to, actions such as shifting production away from packaging and product categories that do not meet the recycling rates required pursuant to Section 42054, reaching a minimum content standard set by the department, or establishing a take-back system or deposit fee system for single-use packaging or priority single-use products that would increase the recycling rate of the material. The department shall not assess a penalty and the producer shall remain listed as compliant pursuant to Section 42054.1 if the producer complies with the corrective action plan. A producer may request approval from the department to comply with a corrective action plan or elements of a corrective action plan through a joint venture or joint actions with other producers.
(3) The department, in determining the penalty amount and whether or not to assess a penalty, shall consider all of the following:
(A) The nature, circumstances, extent, and gravity of the violation or a condition giving rise to the violation and the various remedies and penalties that are appropriate in the given circumstances, with primary emphasis on protecting the public health and safety and the environment.
(B) Whether the violation or conditions giving rise to the violation have been corrected in a timely fashion or whether reasonable progress is being made to correct the violation or conditions giving rise to the violation.
(C) Whether the violation or conditions giving rise to the violation demonstrate a chronic pattern of noncompliance with this chapter or the regulations adopted pursuant to this chapter.
(D) Whether the violation or conditions giving rise to the violation were intentional.
(E) Whether the violation or conditions giving rise to the violation were voluntarily and promptly reported to the department before the commencement of an investigation or audit by the department.
(F) Whether the violation or conditions giving rise to the violation were due to circumstances beyond the reasonable control of the producer or were otherwise unavoidable under the circumstances, including, but not limited to, unforeseen changes in market conditions.
(G) The size and economic condition of the producer.
(4) (A) The department may extend a previously established timeframe for a producer to comply with a corrective action plan for up to 24 months if the department sets forth steps for the producer to achieve compliance with the corrective action plan and if the producer has demonstrated that it has made a substantial effort to comply and that there are extenuating circumstances that have prevented it from complying.
(B) For purposes of this paragraph, “substantial effort” means that a producer has taken all practicable actions to comply with a corrective action plan. Substantial effort does not include circumstances in which the decisionmaking body of a producer has not taken the necessary steps to comply with a corrective action plan, including, but not limited to, a failure to provide staff resources or a failure to provide sufficient funding to ensure compliance with a correction action plan.
(b) A producer may offer for sale, sell, distribute, or import single-use packaging or priority single-use products in a packaging or product category that does not meet the recycling rates established pursuant to subdivision (a) or (b) of Section 42054 if the producer demonstrates to the department that the producer has implemented actions to achieve the recycling rates established pursuant to subdivision (a) or (b) of Section 42054 for an amount equal to the producer’s market share of that packaging or product category in California.
(c) (1) The department may audit producers, retailers, and wholesalers including, but not limited to, reports submitted by a producer and demonstrations made by a producer pursuant to Section 42054.
(2) The department shall review an audit for compliance with this chapter and consistency with information reported pursuant to this chapter.
(3) The department shall notify a producer, retailer, or wholesaler, of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the department’s audit.
(4) A producer, retailer, or wholesaler may obtain copies of the department’s audit of the producer upon request.
(5) The department shall not disclose any confidential or proprietary information that is included in the department’s audit to the extent that information is protected from disclosure by existing law.
(d) Subdivision (a) does not apply to the requirements of paragraph (1) of subdivision (a) of Section 42054. The department may notify the producer of the failure to comply with the requirements of paragraph (1) of subdivision (a) of Section 42054.

Article  4. Single-use Packaging and Priority Single-use Product Stewardship

42070.
 (a) The department may adopt regulations allowing producers to meet the requirements of this chapter collectively by forming a stewardship organization that adopts a stewardship plan in accordance with this article. If the department adopts those regulations, the regulations shall include all of the provisions of this article.
(b) A producer that is a member of a stewardship organization, which is formed in accordance with this article and is in compliance with this chapter, shall not individually be subject to the requirements of this chapter for the single-use packaging and priority single-use products covered by the stewardship plan, except as specified in a stewardship plan adopted by a stewardship organization in accordance with this article.
(c) In accordance with Section 42080, a stewardship organization formed in accordance with this article shall be responsible for paying the California circular economy regulatory fee on behalf of its members and may require a member to reimburse the stewardship organization for the amount of the regulatory fee paid on behalf of the member.

42071.
 (a) Producers may form a stewardship organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986.
(b) A stewardship organization formed pursuant to subdivision (a) shall develop and submit to the department a stewardship plan for the source reduction, collection, and recycling of the single-use packaging or priority single-use products that the producers covered under the plan sell, offer for sale, distribute, or import in or into the state in an economically efficient and practical manner. The stewardship plan shall be consistent with the regulations adopted in accordance with Section 42050.
(c) Within 90 days after approval or conditional approval by the department of the plan, the stewardship organization shall implement the approved plan.
(d) The approved plan shall be a public record, except that financial, production, or sales data reported to the department by the stewardship organization is not a public record for purposes of the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial, production, or sales data in summary form so the information cannot be attributable to a specific producer, retailer, wholesaler, or to any other entity.

42072.
 (a) The stewardship organization shall keep minutes, books, and records that clearly reflect the activities and transactions of the stewardship organization.
(b) The accounting books of the stewardship organization shall be audited at the stewardship organization’s expense by an independent certified public accountant retained by the stewardship organization at least once each calendar year.
(c) The stewardship organization shall arrange for the audit to be delivered to the department with the annual report required pursuant to Section 42073. The department shall review the audit for compliance with this article and consistency with the plan created pursuant to this article. The department shall notify the stewardship organization of any compliance issues or inconsistencies.
(d) The department may conduct its own audit if it determines that an audit is necessary to enforce the requirements of this article and that the audit conducted pursuant to subdivision (b) is not adequate for this purpose. The stewardship organization may obtain copies of the audit upon request.
(e) The department shall not disclose any confidential or proprietary information in an audit.

42073.
 The stewardship organization shall annually submit to the department and make publicly available on its internet website an annual report that describes how the organization has complied with the requirements of this chapter and its implementing regulations.

42074.
 (a) The department shall review the annual report for compliance with this article and shall approve, disapprove, or conditionally approve the report within 120 days of receipt of the annual report.
(b) If the department disapproves the annual report, the department shall explain, in writing, how the annual report does not comply with this article, and the stewardship organization shall resubmit the report with any additional information, modifications, or corrections to the department within 30 days. If the department finds that the annual report resubmitted by the stewardship organization does not comply with the requirements of this article, the stewardship organization shall not be deemed in compliance with this article until the stewardship organization submits an annual report that the department finds compliant with the requirements of this article.
(c) The approved annual report shall be a public record, except that financial, production, or sales data reported to the department by the stewardship organization is not a public record for purposes of the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial, production, or sales data in summary form so the information cannot be attributable to a specific producer, retailer, wholesaler, or to any other entity.

42075.
 (a) A stewardship organization, as part of its stewardship plan, shall set up a trust fund or an escrow account, into which it shall deposit all unexpended funds, for use in accordance with this section in the event that the stewardship plan terminates or is revoked.
(b) If a stewardship plan terminates or is revoked, the trustee or escrow agent of a trust fund or escrow account set up pursuant to subdivision (a) shall do both of the following, starting within 30 days:
(1) Accept payments directly from producers into the trust fund or escrow account that would have been made to the stewardship organization prior to the plan’s termination or revocation.
(2) Make payments from the trust fund or escrow account as the department shall direct, in writing, to implement the most recently approved stewardship plan.
(c) If a new stewardship plan has not been approved by the department within one year after termination or revocation, the department may make modifications to the previously approved plan, as it deems necessary, and continue to direct payments from the trust fund or escrow account in accordance with paragraph (2) of subdivision (b) to implement the modified stewardship plan.
(d) A trustee or escrow agent in possession of stewardship funds shall, as directed by the department, transfer those funds to a successor stewardship organization with an approved stewardship plan.

42076.
 (a) Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a stewardship organization or its members 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).
(b) Subdivision (a) shall apply to all of the following actions taken by a stewardship organization or its members:
(1) The creation, implementation, or management of a stewardship plan approved by the department pursuant to this article and the types or quantities of single-use packaging or priority single-use products managed pursuant to a stewardship plan.
(2) The cost and structure of an approved stewardship plan.
(3) The establishment, administration, collection, or disbursement of any charges associated with funding the implementation of this article.
(c) Subdivision (a) shall not apply to an agreement that does any of the following:
(1) Fixes a price of or for single-use packaging or priority single-use products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this article.
(2) Fixes the output of production of single-use packaging or priority single-use products.
(3) Restricts the geographic area in which, or customers to whom, single-use packaging or priority single-use products will be sold.

Article  5. California Circular Economy Regulatory Fee

42080.
 (a) (1) The department shall establish, and a producer shall pay, a California circular economy regulatory fee. The amount of the fee shall be established and adjusted by the department based on the factors specified in paragraph (3). The department shall set this fee to collect no more than is necessary for the regulatory costs of this chapter for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3).
(2) A producer shall remit the fee assessed pursuant to this subdivision to the department on a quarterly schedule for deposit into the California Circular Economy Fund, which is hereby created in the State Treasury. The revenue from the fee shall be tracked separately by the department and shall not be used for activities other than those described in this subdivision.
(3) Before establishing or adjusting the fee, the department shall review at a public hearing all of the following factors:
(A) A projection of the amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, or other regulatory activities associated with single-use packaging and priority single-use products pursuant to this chapter, taking into account any revenue received from entities agreeing to corrective action plans.
(B) The sufficiency of revenues in the California Circular Economy Fund for the department to administer, enforce, and promote its regulatory activities regarding single-use packaging and priority single-use products, including the regulatory aspects of the programs established pursuant to this chapter, plus a prudent reserve.
(C) Whether additional revenues are necessary to preserve the department’s ability to conduct regulatory activities in the following fiscal year.
(D) If the actual regulatory costs incurred by the department are lower than the projected costs, whether, at the end of the fiscal year, a sufficient net fund balance remains in the California Circular Economy Fund to reduce the fee.
(4) An adjustment to the fee shall become effective on January 1 of the year following its adoption.
(5) The department may adopt regulations to establish and adjust the fee. Regulations to adjust the fee shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the Government Code.
(b) (1) The amount of the fee imposed on a producer shall be proportionate to the cost of regulating that producer based on whether the producer is complying with this chapter individually or collectively as a member of a stewardship organization. If a producer is a member of a stewardship organization, the stewardship organization shall be responsible for paying the fee on behalf of the producer. A stewardship organization may require a member to reimburse the stewardship organization for the amount of the regulatory fee paid on behalf of the member.
(2) The amount of the fee imposed on a producer shall be proportionate to the cost of regulating that producer based on whether the producer is a producer of single-use packaging or priority single-use products.
(3) If a fee paid by a producer pursuant to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500)) or any other programs relevant to this chapter results in reduced costs of regulating that producer under this chapter, the department shall take into consideration account for that reduced cost of regulation when determining the amount of the California circular economy regulatory fee to impose on that producer.
(c) If the state loans money from a fund to the California Circular Economy Fund for managing single-use packaging or priority single-use products in the state, moneys in the California Circular Economy Fund may be used toward repaying a loan that was made before January 1, 2020, or any other loan of public funds made for the purposes set forth in this section.

SEC. 2.SEC. 3.

 Chapter 6 (commencing with Section 48710) is added to Part 7 of Division 30 of the Public Resources Code, to read:
CHAPTER  6. Local Agency Regulation of Food Packaging Material

48710.
 (a) For purposes of this chapter, the following definitions apply:
(1) “Curbside program” means a recycling or composting program that picks up waste material from individual or multiple family residences, or both, with the intent to recycle or compost the waste material, operated by, or pursuant to a contract with, a local agency, or is acknowledged, in writing, by a local agency.
(2) “Grocery store” means a store primarily engaged in the retail sale of canned food, dry goods, fresh fruits and vegetables, and fresh meats, fish, and poultry, and any area that is not separately owned within the store where food is prepared and served, including a bakery, deli, and meat and seafood counter.
(3) “Local agency” means a city, county, city and county, or other local public agency.
(b) A local agency shall not require a grocery store to use a certain type of food packaging for any food sold in the grocery store unless the majority of residential households within the jurisdiction of the local agency have access to a curbside program that accepts the material from which that food packaging is made.
(c) A local agency shall not require a grocery store to use a food packaging container that does not meet an ASTM standard specification, as defined pursuant to subdivision (b) of Section 42356, or the compostability criteria developed pursuant to Section 42052.
(d) (1) Except as provided in paragraph (2), a local agency shall not enforce or implement an ordinance, resolution, regulation, or rule, or make any amendment to an ordinance, resolution, regulation, or rule, that violates or is in conflict with subdivision (b) or (c).
(2) A local agency that, as of September 15, 2019, has an ordinance, resolution, regulation, or rule that violates or is in conflict with subdivision (b) or (c) may continue to implement and enforce that ordinance, resolution, regulation, or rule.
(e) This chapter does not prohibit a local agency from requiring a grocery store to use a certain type of food packaging that is refillable or reusable.
(f) This chapter shall remain in effect only until January 1, 2030, and as of that date is repealed.

SEC. 3.SEC. 4.

 The Legislature finds and declares that Section 1 of this act, which adds Chapter 3 (commencing with Section 42040) to Part 3 of Division 30 of the Public Resources Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect the proprietary information of producers, retailers, and wholesalers of single-use packaging and priority single-use products, it is necessary that financial, production, and sales data reported by producers, retailers, and wholesalers of single-use packaging and priority single-use products be kept confidential.

SEC. 4.SEC. 5.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.