AB973 - Recycling: plastic trash bags: plastic packaging and products.

Amended IN Assembly April 22, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 973 Introduced by Assembly Member Hoover (Coauthor: Assembly Member Berman) February 20, 2025 An act to repeal Chapter 5.4 (commencing with Section 42290) of Part 3 of Division 30 of, and to repeal and add Chapter 5.5 (commencing with Section 42300) of Part 3 of Division 30 of of, the Public Resources Code, relating to recycling. LEGISLATIVE COUNSEL'S DIGEST AB 973, as amended, Hoover. Recycling: plastic trash bags: plastic packaging and products. (1) The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, creates a program for the recycling of rigid plastic packaging containers. The program defines “rigid plastic packaging container” to mean a plastic package having a relatively inflexible finite shape or form, with a capacity between 8 fluid ounces and 5 fluid gallons, that is capable of maintaining its shape while holding other products, including, but not limited to, bottles, cartons, and other receptacles, for sale or distribution in the state. The program generally requires a rigid plastic packaging container sold or offered for sale in this state to meet one of specified criteria, including, but not limited to, having been made from 25% postconsumer material or being a reusable package or a refillable package, unless a waiver or an exemption applies. Notwithstanding these provisions, the program deems a manufacturer in compliance with the program if the manufacturer demonstrates that it, or another company under the same corporate ownership, either consumed or arranged for the purchase and consumption of certain amounts of postconsumer material generated in the state for the manufacture of rigid plastic packaging containers or other plastic products or packaging not subject to the program, as provided. The program makes a violation of these provisions a public offense punishable by a fine of not more than $100,000. The program also subjects a violation of these provisions to a civil penalty of not more than $50,000, as provided. The program requires the department to deposit all penalties and fines into the Rigid Container Account in the Integrated Waste Management Fund in the State Treasury. The program requires the moneys in the account to be expended by the department, upon appropriation by the Legislature, to assist local governmental agencies to develop and implement collection and processing systems for the recycling of materials covered by the program, for the development of markets for these materials, and for the department’s costs of implementing the program. The program requires the department to adopt regulations to implement the program, as provided. This bill would repeal the program and replace it with a new program for recycling plastic packaging and products. The bill would require, on or before July 1, 2026, and annually thereafter, a manufacturer of a covered product, as defined, to pay an annual registration charge and to register with the department, as specified. The bill would require a manufacturer to provide certain information during registration, including, but not limited to, the brand name of each of the manufacturer’s covered products. The bill would subject a manufacturer that is not in compliance with the registration requirement to a an administrative civil penalty of not more than $1,000 for each day of a violation, $5,000 per day per violation, as specified. The bill would, on and after January 1, 2029, require a manufacturer to include, as part of its annual registration, proof of third-party certification of the postconsumer recycled content of each of its covered products. The bill would require the third-party certification to be provided under penalty of perjury. By expanding the scope of a crime, this bill would impose a state-mandated local program. This bill would require a manufacturer to meet certain annual minimum postconsumer recycled content percentages for covered products, as specified. The bill would authorize the department to grant a waiver for up to 2 years, upon application, from these requirements, as specified. The bill would require certain information to be included in a waiver application and would require a waiver application charge not to exceed $1,000. The bill would require the department to assess a an administrative civil penalty for a violation on a per-pound basis for each pound of virgin material that was used by a manufacturer in its products instead of the minimum postconsumer recycled content, as specified. The bill would authorize the department to reduce this administrative civil penalty if the manufacturer submits, and the department approves, a corrective action plan, as specified. This bill would require the department to deposit all penalties and fines paid pursuant to the program into the Rigid Container Account, which this bill would continue in existence. The bill would require moneys deposited into the account to be expended by the department, upon appropriation by the Legislature, to assist local governmental agencies to develop and implement collection and processing systems for the recycling of materials that are subject to the program, for the development of markets for these materials, and for the department’s actual and reasonable costs of implementing the program. This bill would require, on and after April 1, 2028, a manufacturer to provide to the department, in a format and manner prescribed by the department, an annual report that includes specified information regarding amounts and types of plastics used in covered products. The bill would exempt confidential and proprietary information, collected by the department from manufacturers for purpose of the program, from disclosure pursuant to the California Public Records Act. This bill would authorize a manufacturer to authorize an organization to act on its behalf in complying with certain requirements, including, but not limited to, registration and annual reporting requirements. The bill would exempt certain covered products from the program, as specified. This bill would require the department to adopt regulations to implement and enforce the program, as specified. The bill would require the department to establish an electronic registration process on its internet website. (2) The California Integrated Waste Management Act of 1989 requires a manufacturer of certain plastic trash bags to ensure that the recycled plastic postconsumer material in the bag is equal to at least 10% of the weight of the bag, or that at least 30% of the weight of the material used in all of the manufacturer’s plastic products is recycled plastic postconsumer material, as provided. Existing law requires a manufacturer of a plastic trash bag to submit an annual report to the Department of Resources Recycling and Recovery certifying compliance with these postconsumer materials requirements, as specified. Existing law requires the department to survey manufacturers and report to the Legislature on, among others, the quantity of recycled plastic postconsumer material provided by suppliers within the state and the quantity of the material provided by suppliers outside the state. Existing law requires a wholesaler of plastic trash bags to annually certify to the department the name and physical location of each manufacturer from whom it purchased plastic trash bags, as provided. Existing law authorizes the department to adopt regulations to implement these provision, as specified. Existing law prohibits a supplier, manufacturer, or wholesaler, as provided, that is not in compliance with these provisions from being eligible for a state contract or subcontract, as provided. This bill would repeal these provisions. (3) 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. (2) (4) 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. (3) 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. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. The Legislature finds and declares all of the following: (a) Plastics recycling provides environmental and economic benefits to the state, including, but not limited to, reducing energy consumption and greenhouse gas emissions, preserving natural resources, reducing reliance on virgin fossil fuels to make new plastics, and creating more jobs than waste disposal. (b) The state has required several types of products to use increasing levels of postconsumer recycled material in their manufacture, including newsprint, glass containers, plastic containers, and plastic trash bags. (c) The increased use of recycled content in plastic products and packaging is needed to reach the recycling targets in Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code. (d) The use of plastic packaging and products has grown exponentially over the past three decades since the Legislature first required recycled content in select rigid plastic containers. (e) The use of film and flexible plastic packaging is the fastest growing packaging sector, and these products have very low recycling rates. (f) The requirements imposed by this act are reasonable and are achievable at minimal cost relative to the burden imposed by the continued excessive use of virgin materials in plastic products in the state. (g) It is, therefore, the intent of the Legislature to spur markets for plastic materials collected for recycling by requiring manufacturers to use increasing amounts of postconsumer recycled material in their rigid and flexible plastic products, only if the use of that material does not present an unreasonable risk to the public health and safety, and to achieve high recycling rates for these rigid and flexible plastic packaging and products. SEC. 2. Chapter 5.4 (commencing with Section 42290) of Part 3 of Division 30 of the Public Resources Code is repealed. SEC. 2. SEC. 3. Chapter 5.5 (commencing with Section 42300) of Part 3 of Division 30 of the Public Resources Code is repealed. SEC. 3. SEC. 4. Chapter 5.5 (commencing with Section 42300) is added to Part 3 of Division 30 of the Public Resources Code, to read: CHAPTER 5.5. Plastic Packaging and Products Article 1. Definitions and General Provisions 42300. For purposes of this chapter, the following definitions apply: (a) “Covered product” means all of the following: (1) A rigid plastic container. (2) A rigid plastic product. (3) Film plastic used in any of the following: (A) Packaging overwrap and shrink wrap. (B) A lawn and garden plastic film bag. (C) A heavy-duty industrial plastic film bag. (D) A plastic trash bag, as defined in Section 42290. (b) “Covered product category” means the category of products described in paragraph (1), (2), or (3) of subdivision (a). (c) “Exempted product” means any of the following: (1) A package or container that contains food. (2) A product that is associated with a product produced in, or brought into, the state that is destined for shipment to a destination outside the state, and that remains with the product upon shipment. (3) Packaging used for medical products and products defined as devices or prescription drugs, as specified in the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Secs. 321(g), 321(h), and 353(b)(1)). (4) Packaging used for drugs that are used for animal medicines, including, but not limited to, parasiticide products for animals. (5) Packaging used for products intended for animals that are regulated as animal drugs, biologics, parasiticides, medical devices, or diagnostics used to treat, or administered to, animals under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Secs. 321(g), 321(h), and 353(b)(1)), the federal Virus-Serum-Toxin Act (21 U.S.C. Sec. 151 et seq.), or the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.). (6) Packaging used for infant formula, as defined in Section 321 of Title 21 of the United States Code. (7) Packaging used for medical food, as defined in Section 360ee of Title 21 of the United States Code. (8) Packaging used for fortified oral nutritional supplements used for persons who require supplemental or sole source nutrition to meet nutritional needs due to special dietary needs directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, as those terms are defined as by the International Classification of Diseases, Tenth Revision, or other medical conditions as determined by the department. (9) Packaging used to contain products regulated by the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.). (10) Plastic packaging containers that are used to contain and ship products that are classified for transportation as dangerous goods or hazardous materials under Part 178 (commencing with Section 178.0) of Subchapter C of Chapter I of Subtitle B of Title 49 of the Code of Federal Regulations. (11) A product manufactured for use in the shipment of hazardous materials and that is any of the following: (A) Prohibited from being manufactured with used material by federal packaging material specifications set forth in Section 178.509 or 178.522 of Title 49 of the Code of Federal Regulations. (B) Subject to the testing standards set forth in Subpart M (commencing with Section 178.600) of Part 178 of Subchapter C of Chapter I of Subtitle B of Title 49 of the Code of Federal Regulations. (C) Subject to the recommendations of the United Nations on the transport of dangerous goods. (12) Packaging used to contain hazardous or flammable products classified by the federal Occupational Safety and Health Administration Hazard Communication Standard in Section 1910.1200 of Title 29 of the Code of Federal Regulations. (13) A reusable or refillable package. (14) Containers certified by the Biodegradable Products Institute as compostable. (15) A bag that is designed and manufactured to hold, store, or transport hazardous waste or regulated medical waste. For the purposes of thi [Text truncated for display. Full text available on Congress.gov.]