1. (a) Subject to subdivision (b), all producer responsibility plans shall meet all of the requirements outlined in section 42051.1 of the Public Resources Code and all other requirements set forth in the Act and this chapter.
2. (b) For purposes of determining the required elements of Independent Producer plans, all references to a PRO in the Act with respect to plan requirements apply equally to Independent Producers, except for subdivisions (d) and (f), subparagraph (D) of paragraph (1) of subdivision (j), paragraph (3) of subdivision (j), and paragraphs (1) through (3) of subdivision (m) of sections 42051.1 of the Public Resources Code, and subdivision (d) of section 42051, section 42053, paragraph (2) of subdivision (a) of section 42053.5, and section 42056 of the Public Resources Code, which do not apply to Independent Producer plans.

3. (c) Pursuant to paragraph (3) of subdivision (b) of section 42051.1 of the Public Resources Code, for each technology that will be utilized to achieve recycling requirements, the plan shall additionally include:

   1. (1) An explanation of how the technology is employed in recycling.
   2. (2) A specification of the materials that are recycled by utilizing the technology.
   3. (3) A description of the level of contamination the technology is able to tolerate.
   4. (4) A list of overall inputs, including chemicals, if applicable.
   5. (5) An account of end products, including quantities of by-products or residuals produced by the technology, along with their disposition (for example, further processing or landfill disposal).
   6. (6) Current operational status, including location of current and proposed sites.
   7. (7) An assessment of potential public health and environmental impacts to disadvantaged communities, low-income communities, or rural areas.
   8. (8) An evaluation of the efficiency of the technology in achieving recycling rates.
   9. (9) Information on financial viability, capacity, and cost-effectiveness.
   10. (10) A demonstration that the means and technologies meet the conditions specified in the definition of “recycle” or “recycling” pursuant to subdivision (aa) of section 42041 of the Public Resources Code.

4. (d) In addition to the examples provided in paragraphs (1) through (4) of subdivision (e) of section 42051.1 of the Public Resources Code, the plan shall include the following education and promotion efforts to educate ratepayers to improve the preparation and sorting, as needed, for covered material:

   1. (1) A description of performance measures, which shall evaluate performance of the comprehensive education and outreach program including, but not limited to, ultimate user awareness, program usage, and accessibility.
   2. (2) Provision of educational and outreach materials for consumers that are accessible in languages suited to local demographics, consistent with section 7295 of the Government Code.
   3. (3) A process for coordinating education and promotional efforts between entities including, but not limited to, the PRO, Independent Producers, local jurisdictions, recycling service providers, and alternative collection programs.
5. (e) The plan shall include all information specified in subparagraph (A) of paragraph (4) of subdivision (a) of section 18980.4, paragraph (1) through (3) of subdivision (a) of section 18980.4.1, subdivision (d) of section 18980.4.1, and subdivisions (a) and (d) of section 18980.4.3.

6. (f) The plan shall include a process for implementing and maintaining a formal complaint process, specifically for addressing complaints related to responsible end markets utilized by the PRO or Independent Producers. The process at minimum, shall:

   1. (1) Clearly outline the steps and requirements for persons submitting a complaint.
   2. (2) Establish criteria for assessing the validity and seriousness of alleged complaints.
   3. (3) Specify the process, including estimated timelines, for reviewing, processing, evaluating, investigating and resolving alleged complaints.

7. (g) Pursuant to paragraph (1) of subdivision (g) of section 42051.1 of the Public Resources Code, the plan shall include a process for determining and paying costs that will be incurred, or otherwise would be incurred, by local jurisdictions, recycling service providers, alternative collection programs, and others due to requirements of the Act. For purposes of this subdivision, costs that the PRO and Independent Producers are obligated to pay are referred to as “covered costs.” The process for determining covered costs must satisfy the following criteria:

   1. (1) Costs incurred before January 1, 2023, are not covered costs.

   2. (2) Any of the following costs incurred due to requirements of the Act are covered costs:

      1. (A) A cost of the same nature as one that would ordinarily exist, or be expected to exist, but is greater due to the requirements of the Act. Only the amount of the increase caused by such requirements is a covered cost.
      2. (B) A cost that would not reasonably have been expected to be incurred in the absence of the Act, such as a cost that is of a different nature than ordinarily expected costs and is incurred specifically for the purpose of complying with the requirements of the Act.
      3. (C) A cost specifically approved in advance by the PRO or Independent Producer as a covered cost.
   3. (3) For every cost identified by the entity, the PRO or Independent Producer shall determine the extent to which it is a covered cost. The PRO or Independent Producer shall notify the entity of all determinations in writing.
   4. (4) The process must establish reasonable periods for making determinations pursuant to paragraph (3) and issuing payments, if any.
   5. (5) An entity may seek a determination pursuant to paragraph (3) before it incurs costs it considers to be covered costs. The PRO or Independent Producer shall consider the expected costs that the entity identifies and determine the extent to which they are covered costs.
   6. (6) In addition to allowing identification of covered costs based on claims for certain amounts as described in paragraphs (3) through (5), the process may establish a performance-based approach (e.g., based on tons of covered material) for identifying covered costs. An entity that opts to have covered costs for certain activities determined in such a manner shall not also request that those covered costs for those activities be determined according to paragraph (3).
   7. (7) Subject to the dispute resolution procedure provided in subdivision (h), the PRO or Independent Producer shall not be required to pay costs that had been submitted to the PRO or Independent Producer for consideration before they were incurred and were determined not to be covered costs.
   8. (8) For costs determined to be a recycling service provider's covered costs, the PRO or Independent Producer shall first notify the local jurisdiction on whose behalf a recycling service provider provides solid waste handling services of such determination. The notice may be the same notice provided to the local jurisdiction pursuant to paragraph (3) and shall, at a minimum, describe the nature and amount of the covered costs.

8. (h) Pursuant to paragraph (2) of subdivision (g) of section 42051.1 of the Public Resources Code, the plan shall include a dispute resolution process concerning determinations of whether and to what extent costs incurred by local jurisdictions and recycling service providers are covered costs.

   1. (1) The process must allow a local jurisdiction or recycling service provider to initiate the process after the PRO or Independent Producer has determined whether particular costs are covered costs or if the PRO or Independent Producer fails to make a determination or payment within the period established for doing so pursuant to paragraph (4) or subdivision (g).
   2. (2) The advisory board, when reviewing any plan submitted to it, shall review the process and consider whether to suggest changes to ensure that the PRO or Independent Producer covers costs related to the Act.
   3. (3) The process must avoid unnecessary burden on local jurisdictions and recycling service providers.

   4. (4) The process must provide the option for the local jurisdiction or recycling service provider to require the dispute to be submitted to mediation and, if no agreement is reached through mediation, binding arbitration. The PRO or Independent Producer plan shall include the express terms of an agreement that, upon the local jurisdiction or recycling service provider's exercise of its option, will govern mediations and arbitrations. The agreement's express terms must comply with the following restrictions:

      1. (A) Each mediation or arbitration shall be administered by a nationally recognized service provider. The plan shall identify a mediation service provider and an arbitration service provider, or a single service provider for both, but the parties involved in the dispute may agree to utilize any other entity, subject to the other requirements set forth in this paragraph.
      2. (B) Arbitration, if any, shall be conducted under rules and procedures deemed appropriate by the arbitrator or arbitration panel for resolution of the dispute, in consideration of the complexity of the evidentiary and legal issues involved in the matter, subject to the requirements of sections 1280 through 1294.4 of the Code of Civil Procedure. To the extent the parties agree to any rules or procedures that comply with those sections, the arbitrator or arbitration panel shall adopt such rules or procedures.
      3. (C) Mediators and arbitrators or arbitration panels shall be agreed upon by the parties or shall be selected according to a process agreed upon by the parties. If the parties are unable to agree upon appointment of a mediator, one shall be assigned by the mediation service provider. If the parties are unable to agree upon appointment of an arbitrator, each party shall select one arbitrator, and the selected arbitrators shall then select a third arbitrator, who shall act as chair to the arbitration panel.
      4. (D) The decision of the arbitrator or arbitration panel shall be binding.
      5. (E) Unless the parties agree otherwise, arbitration and mediation fees shall be apportioned equally among the parties. Each party shall be responsible for their own attorney's fees.

      6. (F) The arbitrator or arbitration panel must be empowered to determine the reasonable costs, if any, for which the PRO or Independent Producer must pay the local jurisdiction or recycling service provider pursuant to subdivision (g) of section 42051.1 of the Public Resources Code. The arbitrator or arbitration panel shall apply that provision as follows:

         1. (i) The determination shall be made in light of all provisions of the Act relevant to payment of such costs, including paragraph (1) of subdivision (a) of section 42060, paragraph (1) of subdivision (j) of section 42051.1, subdivision (l) of section 42051.1 of the Public Resources Code, and all provisions affecting the costs that local jurisdictions and recycling service providers may incur.
         2. (ii) Cost determinations shall be subject to the limitations provided in subdivision (b).
      7. (G) The local jurisdiction or recycling service provider shall not be required to agree to submit a matter to binding arbitration as a precondition for submitting the matter to mediation.
   5. (5) Notwithstanding the foregoing, the parties to any dispute may resolve the dispute in any manner mutually agreed upon, such as through mediation, non-binding arbitration, or arbitration without regard to the dispute resolution provisions of the plan.
   6. (6) Nothing in this subdivision shall be construed as empowering the PRO or Independent Producers to require local jurisdictions or recycling service providers to submit any matter to mediation or arbitration.
9. (i) If the plan is a PRO plan, the plan shall establish the process required pursuant to paragraph (1) of subdivision (f) of section 18980.3. If the plan is an Independent Producer plan, it shall instead include the information required pursuant to paragraph (2) of subdivision (f) of section 18980.3 for any covered materials claimed to be recyclable pursuant to paragraph (4) of subdivision (d) of section 42355.51 or paragraph (5) of subdivision (d) of section 42355.51 of the Public Resources Code.

10. (j) The plan shall additionally include:

    1. (1) In its entirety, the then-current version of the design guide referenced in subparagraph (A) of paragraph (3) of subdivision (d) of section 42355.51 of the Public Resources Code.

       1. (A) Such version shall apply to determinations of recyclability of covered materials, as set forth in paragraph (1) of subdivision (b) of section 18980.3, and to the requirement under paragraph (2) of subdivision (d) of section 42053 of the Public Resources Code that the PRO's fees account for the difficulty of recycling covered material, as set forth in subdivision (h) of section 18980.6.7.
       2. (B) In the event that an updated version of the design guide incorporated into the plan becomes available, the updated design guide may only become part of the plan through a plan updated pursuant to section 18980.6.3 or amended pursuant to section 18980.6.4. In an updated or amended plan, any changes to the design guide that would affect the recyclability of covered materials shall be identified and the impacts explained.
    2. (2) Any other publications, in their entirety, that the PRO may rely on pursuant to paragraph (2) of subdivision (d) of section 42053 of the Public Resources Code to account for the difficulty of recycling or composting covered material caused by elements that are detrimental to recycling or composting.
11. (k) If the plan is a PRO plan, it shall include a description of how the PRO will coordinate with any Independent Producers. If the plan is an Independent Producer plan, it shall include a description of how the Independent Producer will coordinate with the approved PRO and any other Independent Producers.

Note: Authority cited: Sections 40401, 40502, 42041, 42060 and 42063, Public Resources Code. Reference: Sections 42041, 42051, 42051.1, 42051.2, 42060, 42063, 42080, 42081 and 42355.51, Public Resources Code.

History

1. New article 8 (sections 18980.8-18980.8.2) and section filed 5-1-2026; operative 5-1-2026 pursuant to Government Code section 11343.4(b)(3) (Register 2026, No. 19).