1. (a) A PRO shall not apply the source reduction credit based on incorporation of postconsumer recycled content, as described in clause (i) of subparagraph (B) of paragraph (2) of subdivision (a) of section 42057 of the Public Resources Code, unless the alternative compliance formula described for doing so has been proposed and approved as part of a PRO's plan in accordance with this section.

2. (b) The Department shall approve an alternative compliance formula as part of a PRO's plan only if the plan establishes the following:

   1. (1) That the formula will accurately and reliably assess the reduction, by weight, in the use of virgin plastic through incorporation of postconsumer recycled content. To measure source reduction, it will compare the amount of postconsumer recycled content used to the amount used in the 2023 calendar year. The plan shall include a detailed description of the formula, including all assumptions, estimates, and supporting information.
   2. (2) That data to be reported to the Department or otherwise available to the PRO will enable the PRO to perform the measurement described in paragraph (1). The plan must describe how it will identify the producers for which there is sufficient data and apply the formula only with respect to those producers.
   3. (3) That the formula will give a source reduction credit for the use of postconsumer recycled content in lieu of virgin plastic no greater than the source reduction credit that would be achieved by eliminating use of both the recycled content and virgin plastic altogether.

   4. (4) That postconsumer recycled content used in covered material can be validated by the Association of Plastic Recyclers through its APR Postconsumer Resin Certification Program for purposes of validating the comparison described in paragraph (1). Alternatively, the plan may propose a different third party to perform the validations. The plan may do so only if the plan and the alternative third-party validation entity meet the following requirements:

      1. (A) The plan must explain with specificity the differences between the alternative third party's validation program and the APR program and demonstrate how the alternative third party's validations will result in more consistent and accurate assessments of postconsumer recycled content used in covered material. The explanation must, for example, show that the standards used by the alternative third party are at least as stringent as those employed by the APR program.

      2. (B) The third party must be independent and impartial, and it must not have any conflict of interest with respect to validating postconsumer recycled content. Without limitation, the entity shall be deemed not to satisfy this requirement if either of the following is true:

         1. (i) It holds any ownership interest, whether direct or indirect, in any person that is a PRO participant and a producer of plastic covered material.
         2. (ii) Other than for services related to verification or certification programs, market research, advocacy, education, scientific or policy research or studies, scientific testing, or industry development, it transacts business with any person that is a PRO participant and a producer of plastic covered material, regardless of whether such business is with the producer directly or indirectly, such as through subsidiary or parent companies of the producer. Merely purchasing items for purposes unrelated to the activities identified in this clause, without any further contractual or other relationship related to the purchase, shall not be considered transacting business with any person for purposes of this clause.
      3. (C) The alternative third party or entities that conduct validations on its behalf have ISO/IEC 17065:2012 accreditation issued by an accrediting body that is a signatory member of the International Accreditation Forum or is a signatory to a mutual recognition arrangement established by that organization.
   5. (5) How the formula will grant source reduction credit only for usage of postconsumer recycled content that contains no intentionally added perfluoroalkyl and polyfluoroalkyl substances.

3. (c) Except under the following conditions, a formula and, if any, an alternative third-party validation entity approved as part of a producer responsibility plan shall be considered approved for inclusion in an updated or amended version of the plan.

   1. (1) At least one year before the expiration date of a currently approved PRO plan, the Department may notify the PRO that the Department has identified evidence, information, or circumstances that were not considered in connection with the Department's approval of the plan's alternative compliance formula or alternative third-party validation entity and potentially render the basis for that approval out of date or otherwise insufficient. The subsequent plan update pursuant to paragraph (2) of subdivision (d) of section 42051.2 of the Public Resources Code must reestablish the elements to comply with subdivision (b) of this section. The updated plan must specifically address the new evidence, information, or circumstances identified by the Department.
   2. (2) If the Department determines that the PRO negligently or intentionally included false information, relied on false evidence, failed to incorporate or consider known information or evidence not supportive of the PRO's proposal, or otherwise negligently or intentionally obscured potential flaws in its updated plan, the formula and, if applicable, the alternative third- party validation entity shall be deemed no longer approved.

4. (d) For purposes of paragraph (1) of subdivision (e) of section 42053 of the Public Resources Code, a third party shall be deemed approved to perform validation services under either of the following circumstances:

   1. (1) The entity is the entity included in the PRO's current plan for purposes of clause (i) of subparagraph (B) of paragraph (2) of subdivision (a) of section 42057 of the Public Resources Code.
   2. (2) The third party satisfies the requirements of subparagraphs (B) and (C) of paragraph (4) of subdivision (b), and the PRO opts to rely on the third party's validation services.

Note: Authority cited: Sections 40401, 40502, 42053 and 42060, Public Resources Code. Reference: Sections 42051.2, 42053 and 42057, 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).