1. (a) Only a PRO or an Independent Producer may submit a request for an exemption pursuant to paragraph (3) of subdivision (a) of section 42060 or paragraph (4) of subdivision (a) of section 42060 of the Public Resources Code. The effect of such an exemption is that exempted covered material may be sold, offered for sale, imported, or distributed regardless of whether the covered material complies with section 42050 or subdivision (i) of section 42057 of the Public Resources Code. The exemption does not affect the status of the single-use packaging or single-use plastic food service ware as covered material and does not otherwise change the obligations of producers with respect to the covered material, such as reporting and payment of PRO fees.

2. (b) A PRO or an Independent Producer registered with the Department pursuant to subdivision (a) of section 18980.10 may request an exemption under this section by submitting an application to the Department as described in subdivision (c). The Department shall only consider an application if it contains all the elements prescribed in this section.

   1. (1) A PRO may establish any procedure it deems appropriate for receiving applications prepared in whole or part by a producer or group of producers and deciding whether to submit the applications to the Department.
   2. (2) Notwithstanding paragraph (1), a PRO shall not submit to the Department an application unless the PRO has reviewed the application and considers it to meet the standards set forth in this section for approval.

3. (c) The application shall be submitted to the Department electronically via email. If the Department has given notice via its website that an online portal is available for application submittal, the application shall instead be submitted electronically via that portal. The application shall include all the following:

   1. (1) Name, description, and other information sufficient to uniquely identify the packaging or food service ware for which an exemption is sought.
   2. (2) Identification of the exemption sought. A single application can be submitted covering both exemptions, provided that the application contains the elements prescribed in this section.
   3. (3) Except as otherwise provided with respect to entire classes of products or covered materials under section 18980.2.7, identification of all products or potential products that would be covered by the exemption because they use or constitute covered material. Products shall be identified by name, description, and other information sufficient to uniquely identify the products. Such identification may be achieved, for example, with respect to unique physical characteristics, such as the product's form, materials, and dimensions, or identifying information such as a unique stock keeping unit (SKU) or a global trade item number, such as a universal product code (UPC).

   4. (4) Depending on the basis for the exemption, the following information and analyses:

      1. (A) For an application requesting an exemption pursuant to paragraph (3) of subdivision (a) of section 42060 of the Public Resources Code based on unique challenges in complying with the Act or this chapter:

         1. (i) Identification of which requirements of the Act for which the covered material presents unique challenges for compliance with the Act and this chapter.
         2. (ii) The nature of the unique challenges, including, but not limited to: how they are unique; the circumstances that render them unique; their technical, legal, and financial elements, as applicable; and how the characteristics of the covered material cause the challenges.
         3. (iii) The practical necessity of the covered material that justifies exempting the covered material from the Act despite it not complying with the requirements identified according to clause (i). At a minimum, the justification shall address the extent to which the exemption is necessary to minimize risks with respect to public health, the environment, economic development, burdens on vulnerable populations, disproportionate effects on identifiable classes of persons or industries, and conflicting obligations under any other laws.
         4. (iv) Potential alternatives to the covered material and a description of why they are infeasible or unreasonable. At a minimum, such description shall address technological or financial limitations, if any, and the extent to which the alternatives present challenges or risks similar to those described pursuant to clauses (i) through (iii).
         5. (v) To the extent not otherwise addressed, potential impacts of the covered material on disadvantaged communities, low-income communities, or rural areas from exempting or not exempting the covered material.
         6. (vi) Current impacts of the covered material on the existing collection, processing, recycling infrastructure, and the effect that the exemption may have on those impacts.
         7. (vii) If applicable, a description of why the covered material cannot be recycled, composted, or source reduced.
         8. (viii) A proposed plan pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of section 42060 of the Public Resources Code to phase the covered material into the requirements of the Act, or an explanation of how the nature of the unique challenges makes such a plan unfeasible or unnecessary, in which event the applicant shall explain why a plan is unfeasible or unnecessary to prevent the exemption, if granted, from interfering with the intent of the Act, including achievement of the requirements of section 42050 of the Public Resources Code and the policy goal established in section 41780.01 of the Public Resources Code as it relates to covered material. Such a proposal shall address, at a minimum, the requirements of the Act that the covered material currently satisfies, a timeline for when the covered material is anticipated to satisfy all requirements of the Act, and progress requirements for each year of that timeline with respect to addressing the challenges described in the application and otherwise progressing toward full compliance with the Act. The proposed plan shall also provide for periodic reporting to the Department demonstrating implementation of the phase-in plan and the extent to which the plan's yearly progress requirements have been met.

      2. (B) An application for an exemption pursuant to paragraph (3) of subdivision (a) of section 42060 of the Public Resources Code may be based on the challenges involved in establishing an alternative collection program that satisfies the requirements of paragraph (5) of subdivision (d) of section 42355.51 of the Public Resources Code. Such an exemption shall not be granted unless the application includes a proposed phase-in plan, as described in clause (viii) of subparagraph (A). In addition to satisfying the requirements of subparagraph (A), such an application shall include the following elements:

         1. (i) Explanation, information, and evidence concerning the nature of the challenges, generally and with respect to the specific covered material at issue, affecting the establishment of an alternative collection program that satisfies the applicable requirements of paragraph (5) of subdivision (d) of section 42355.51.
         2. (ii) Explanation, information, and evidence demonstrating how the challenges will be overcome to satisfy the applicable requirements, the efforts to overcome them to date, and the extent to which such efforts have been successful.

         3. (iii) If the applicant has already established an alternative collection program for the covered material to be exempted, a complete description of the program, its current status, and plans for further development. Such description shall include, but not necessarily be limited to:

            1. (I) since the program's inception, the amount of the covered material being collected, by month or year, as necessary to provide details about the program's performance over time, and its percentage of the total such covered material sold or distributed;
            2. (II) other covered material, if any, also collected by the program;
            3. (III) efforts undertaken to ensure that covered material being collected is ultimately recycled, and explanation of the efficacy of such efforts;
            4. (IV) details regarding consumer convenience, efforts to facilitate and incentivize participation, and the extent to which consumer behavior, rather than the collection program's infrastructure and operations, is a barrier to recovery of the covered material;
            5. (V) educational outreach and marketing activities to raise awareness of the program;
            6. (VI) names of entities that operate or partner with the program, including recycling service providers, if any, and any planned partnerships or agreements with additional entities;
            7. (VII) the infrastructure, technology, and methods established to facilitate collection of the covered material; and
            8. (VIII) the financial investment made in the program to date.
         4. (iv) If there is no current collection program, a description of the anticipated program, including its planned start date and anticipated features, including with respect to the elements listed in clause (iii).
         5. (v) Projections of the current or anticipated program's progress toward meeting the applicable requirements. Such projections shall address all known and anticipated financial, technical, and other assumptions on which such projections are based and shall identify the date by which the program is expected to satisfy the applicable requirements.
         6. (vi) Information, if available, similar to the information required under clauses (iii) through (v), regarding comparable takeback programs, such as those that collect similar covered material.

      3. (C) For an application requesting an exemption pursuant to paragraph (4) of subdivision (a) of section 42060 of the Public Resources Code based on health and safety reasons:

         1. (i) Identification of which requirements of the Act and this chapter for which health and safety concerns prevent compliance.
         2. (ii) The nature of the health and safety concerns, including how the characteristics of the covered material relate to the concerns and how the concerns prevent compliance with the Act and this chapter.
         3. (iii) The information described in clauses (iii) through (vii) of subparagraph (A), but with respect to the health and safety concerns asserted in the request and the challenges related to them, rather than to the unique challenges referred to in that subparagraph.

      4. (D) For an application requesting an exemption pursuant to paragraph (4) of subdivision (a) of section 42060 of the Public Resources Code because the covered material is unsafe to recycle:

         1. (i) Identification of which requirements of the Act and this chapter with which the covered material cannot comply due to it being unsafe to recycle.
         2. (ii) Characteristics of the covered material that render recycling unsafe.
         3. (iii) Explanation of the nature of the safety risks, why they cannot reasonably be mitigated without an exemption, and how granting the exemption would mitigate or avoid them. The explanation shall, at a minimum, address the extent to which such risks relate to the environment, health and safety, and worker health and safety. The explanation shall also explain the extent to which recycling the covered material creates or exacerbates risks, including contamination of equipment by a toxic or hazardous substance, to end markets, processors, and intermediate supply chain entities.
         4. (iv) The information described in clauses (iii) to (vii) of subparagraph (A), but with respect to the safety issues asserted pursuant to this subparagraph rather than to the unique challenges referred to in subparagraph (A).
         5. (v) To the extent not otherwise addressed, the risk that recycling the covered material would result in the manufacture of new products that would expose consumers to toxic or hazardous substances.

      5. (E) For an application requesting an exemption pursuant to paragraphs (3) or (4) of subdivision (a) of section 42060 of the Public Resources Code, the application shall include an analysis of:

         1. (i) whether the justification for the exemption would necessarily apply to any other products or covered material, such as those having the same or similar composition, facing similar compliance challenges, or presenting similar health or safety concerns as the ones for which the exemption is sought;
         2. (ii) the likely consequences of the same exemption being approved for all such products or covered materials; and
         3. (iii) circumstances, if any, that the applicant contends justify a duration of longer than two years pursuant to paragraph (1) of subdivision (g).
4. (d) The application shall be a public document subject to mandatory disclosure under the California Public Records Act (Division 10 of Title 1 of the Government Code (commencing with section 7920.000)) unless an exemption from mandatory disclosure applies. The Department shall withhold from public disclosure portions of the application that the applicant appropriately identifies as trade secrets, subject to the requirements and limitations set forth in section 18980.14.
5. (e) Except as otherwise provided in section 18980.2.7, if an application is approved by the Department, the exemption for covered material shall apply only to the products and covered material identified in the application. When approving the exemption, the Department may, in its sole discretion, supplement or modify the application's descriptions of the covered material and products as necessary to ensure that the application describes the covered material and products to which the exemption applies.

6. (f) The Department shall evaluate applications as follows:

   1. (1) The Department shall reject any application that does not contain the required elements described in this section.

   2. (2) For an exemption request based on unique challenges as specified in paragraph (3) of subdivision (a) of section 42060 of the Public Resources Code:

      1. (A) The request must clearly and convincingly establish that compliance with the Act is impractical due to challenges unique to the covered material or related circumstances.
      2. (B) The request must clearly and convincingly establish that the exemption and the accompanying phase-in plan, if any, will promote achievement of the requirements of section 42050 of the Public Resources Code in a manner consistent with the intent of the Act, as described in section 42040 of the Public Resources Code, and the policy goal established in section 41780.01 as it relates to covered material.
      3. (C) If the exemption request does not include a phase-in, it shall be rejected unless a phase-in plan would be unfeasible or would be unnecessary to prevent the exemption from harming implementation or enforcement of the Act or otherwise interfering with the intent of the Act, including achievement of the requirements of section 42050 of the Public Resources Code and the policy goal established in section 41780.01 as it relates to covered material.
      4. (D) Notwithstanding subparagraph (B), the Department may approve the exemption based on an alternative phase-in plan developed by the Department that it determines satisfies the requirement of that subparagraph more clearly than the plan submitted by the applicant. Approval of the exemption shall be conditioned on the applicant's acceptance of such phase-in plan.
      5. (E) Unless the exemption was approved without a phase-in plan, its approval is conditioned on successful implementation of such plan and compliance with all its requirements. In the reports required under the phase-in plan, the applicant shall report to the Department the extent to which it has implemented the phase-in plan and satisfied its progress requirements. If implementation has been unsuccessful or any requirement has not been satisfied, the applicant shall explain the reasons for such noncompliance. The Department shall terminate the exemption unless it determines that the noncompliance was reasonably unavoidable due to economic, technological, legal, or other impediments not caused by the applicant and that the exemption is still appropriate for the reasons required pursuant to subparagraphs (A) and (B).

   3. (3) The Department shall approve an exemption request based on paragraph (4) of subsection (a) of section 42060 of the Public Resources Code if the application clearly and convincingly establishes both of the following:

      1. (A) Compliance with the Act is not possible without increasing overall risks to health or safety or risks of significant effects on the environment compared to the risks posed by exempting the packaging or food service ware.
      2. (B) The exemption will not make it more difficult for any other producer to satisfy the requirements of section 42050 of the Public Resources Code.

7. (g) Upon approval, the exemption is valid for two years, except that:

   1. (1) The Department may deem the exemption valid for a longer period, which shall be no longer than five years, if it determines that there is no reasonable likelihood that the circumstances justifying the exemption will change and render exemption no longer justified within the longer period.
   2. (2) Subject to the termination provisions in subparagraph (E) of paragraph (2) of subdivision (f), a phase-in plan may establish a longer duration.
   3. (3) All exemptions are subject to the termination provisions of subdivision (i).

8. (h) To renew an exemption, the PRO or Independent Producer must request renewal between 120 days and 90 days before the exemption would otherwise expire. If approved for renewal, the exemption shall be valid for an additional two years or more, as described in subdivision (g), from the date the exemption otherwise would have expired.

   1. (1) If all the information and evidence submitted with the application remains accurate and valid, such that the original justification for the exemption remains current and sufficient, the PRO or Independent Producer may request renewal by certifying as such in writing. The certification shall be in the form of a letter to the Department, submitted electronically via email. If the Department has given notice via its website that an online portal is available for letter submittal, the letter shall instead be submitted electronically via that portal. The Department shall grant renewal unless it determines that information or evidence included in the application is no longer accurate and valid, that information or evidence in the application is out of date, or that changed circumstances have otherwise rendered the previous basis for granting the exemption invalid or insufficient.
   2. (2) If any information or evidence in the application is no longer accurate and valid, or changed circumstances have otherwise rendered the original justification for the exemption no longer sufficient, the PRO or Independent Producer must file a new application to renew the exemption. The Department shall evaluate the application in the same manner as it reviews initial applications.

9. (i) Notwithstanding any other provision of this section, the Department shall terminate an exemption if it determines any of the following:

   1. (1) The information provided in the application for the exemption was incomplete or false, or the relevant circumstances have materially changed such that the information is no longer accurate;
   2. (2) The exemption harms implementation or enforcement of the Act, or the basis for granting the exemption is otherwise no longer valid; or
   3. (3) Conditions or requirements of a phase-in plan established pursuant to subparagraph (B) of paragraph (3) of subdivision (a) of section 42060 of the Public Resources Code have not been satisfied.
10. (j) The Department shall provide written notice of a termination pursuant to subdivision (i). If the basis for termination is that the PRO or Independent Producer negligently or intentionally submitted incomplete or false information, termination shall be effective immediately upon receipt of the notice. Otherwise, termination shall be effective as of 120 days after receipt of the notice, except that, if the PRO or Independent Producer submits a new application at least 90 days before the effective date of the termination, termination shall be delayed until the Department approves or denies the application.

Note: Authority cited: Sections 40401, 40502 and 42060, Public Resources Code. Reference: Sections 40062, 42053, 42060 and 42355.51, Public Resources Code.

History

1. New section filed 5-1-2026; operative 5-1-2026 pursuant to Government Code section 11343.4(b)(3) (Register 2026, No. 19).