1. (a) A PRO or Independent Producer must support the establishment, expansion, and continued existence of responsible end markets sufficient to satisfy the obligations of the PRO or Independent Producer under the Act, in the manner set forth in their approved plans. Each plan must establish, at a minimum, how the PRO or Independent Producer will do the following:

   1. (1) Provide financial support to end markets as necessary to develop responsible end markets and ensure that they continue to satisfy the standards specified in section 18980.4. The plan must specify, at a minimum, how the PRO or Independent Producer will identify where financial support is needed and decide whether to provide it.
   2. (2) Facilitate material recycling and assist end markets in satisfying the standards specified in section 18980.4, by providing financial support to local jurisdictions, recycling service providers, alternative collection programs, intermediate supply chain entities, and other entities that provide services used for the diversion of materials. The plan must specify, at a minimum, how the PRO or Independent Producer will identify and evaluate opportunities to provide such support and decide whether to provide it.
   3. (3) Develop new responsible end markets for covered materials and explore alternatives for covered materials that do not have a responsible end market. Alternatives include, but are not limited to, investing in refill and reuse infrastructure to facilitate the phasing out of covered materials lacking responsible end markets. The plan must, at a minimum, describe known opportunities for developing new responsible end markets or alternatives to covered materials.

2. (b) If a PRO or an Independent Producer identifies a covered material that does not have an end market, as described in subdivision (b) of section 18980.4, the following requirements apply:

   1. (1) Except as provided in paragraph (3), the PRO or Independent Producer shall conduct a study that:

      1. (A) Evaluates technology that could be used to recycle the covered material and ensure that the technology can constitute recycling, as defined in subdivision (aa) of section 42041 of the Public Resources Code.
      2. (B) Evaluates the feasibility of collecting, transporting, processing, and recycling the covered material.
      3. (C) Evaluates how any current or new end market can meet the standards specified in section 18980.4.
      4. (D) May also include pilot programs to test the components specified in subparagraphs (A), (B), or (C).

   2. (2) If a PRO or Independent Producer, after having conducted the study described in paragraph (1), determines that a responsible end market exists or can exist for such covered material, the PRO or Independent Producer shall include in its plan or a plan amendment:

      1. (A) A description of the end market.
      2. (B) A justification of how the end market can meet the standards specified in section 18980.4 for the covered material.
      3. (C) A budget and investment strategy that describes how the PRO or Independent Producer will fund the development of the end market, along with any necessary development of collection, transportation, and processing infrastructure.
      4. (D) A timeline detailing the proposed end market development.
      5. (E) A determination on how the weight of covered material recycled is estimated, pursuant to paragraph (2) of subdivision (b) of section 18980.3.2.
   3. (3) A study pursuant to paragraph (1) shall not be required if the PRO or Independent Producer opts to phase out the covered material such that the PRO participants or the Independent Producer will no longer sell, offer for sale, or distribute the covered material in the state. The PRO or Independent Producer shall invest in alternatives to that covered material to facilitate phasing it out. Alternatives may include, for example, investing in refill and reuse infrastructure that reduces reliance on the covered material.
3. (c) When a PRO or Independent Producer decides to conduct a study pursuant to paragraph (1) of subdivision (b), the PRO or Independent Producer shall notify the Department and disclose the date on which the study was initiated.
4. (d) When a PRO or Independent Producer completes a study pursuant to paragraph (1) of subdivision (b), the PRO or Independent Producer shall include the results of the study in a plan, plan amendment, or annual report.

Note: Authority cited: Sections 40401, 40502, 42041 and 42060, Public Resources Code. Reference: Sections 42041, 42051, 42051.1 and 42053, 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).