(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 departments 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 manufacturers 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 departments 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.

(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.

(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 departments 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 manufacturers covered products. The bill would subject a manufacturer that is not in compliance with the registration requirement to a civil penalty of not more than $1,000 for each day of a 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 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 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 departments 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 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.

Date of Hearing: May 14, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

ABPCA Bill Id:AB 973

Author:(Hoover) – As Amended Ver:April 22, 2025

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill repeals the existing Recycled Content Trash Bag (RCTP) program and Rigid Plastic Packaging Container (RPPC) program and replaces them with a new program for recycling plastic packaging and products.

Specifically, this bill, among other things:

1. Repeals the RCTP and RPPC statutes.
2. Requires the Department of Resources Recycling and Recovery (CalRecycle) to adopt regulations to implement the bill, and requires the regulations to include, among other things, methodology for calculating the amount of postconsumer recycled content (PCR), as specified, and an annual registration charge to cover the department’s actual and necessary costs to implement, administer, monitor, and enforce this bill. Provides that the annual registration charge shall not exceed $1,000 per manufacturer. Authorizes CalRecycle, upon appropriation, to expend funds from the Integrated Waste Management Account (IWMA) to implement this bill.
3. Requires a manufacturer, by July 1, 2026, and by July 1 of each year thereafter, to register with CalRecycle and pay an annual registration fee, unless as specified. Requires the manufacturer to provide specified information during registration. Requires CalRecycle to establish an electronic registration process on its website, as specified.
4. Requires a manufacturer, by specified dates, to meet certain annual minimum PCR percentages on average for the total quantity of covered products (by weight) sold, offered for sale, or distributed in or into the state.
5. Requires CalRecycle, for each pound of postconsumer resin purchased from a source in the state or in adjacent states, as determined and verified by CalRecycle, for use in the manufacture of covered products with recycled plastic postconsumer material in compliance with this bill, to credit the certifying manufacturer, as specified.
6. Requires a manufacturer, by January 1, 2029, to include as part of its annual registration, proof of third-party certification of the PCR of each of its covered products. Authorizes CalRecycle, among others, to audit a manufacturer.
7. Requires a manufacturer, by April 1, 2028, to provide an annual report to CalRecycle, as specified, and requires CalRecycle to post this information on its website.
8. Authorizes CalRecycle, upon application by a manufacturer, to grant a waiver from the bill’s minimum PCR requirements, as specified. Requires, among other things, a maximum $1,000 waiver application charge for the actual costs to CalRecycle to process the application, and authorizes CalRecycle, by regulation, to modify the waiver application amount to reflect the department’s costs to administer the waiver.
9. Provides that a violation of the bill’s minimum PCR requirements committed prior to January 1, 2029, subjects a manufacturer to an administrative civil penalty of 40 cents per pound of virgin material that was used in place of recycled material. Authorizes CalRecycle, commencing January 1, 2029, to adopt a formula and methodology for calculating a per-pound penalty for each resin type, as specified. Requires CalRecycle, by July 1 of each year, to publish a report with the fines and penalties it levied pursuant to this bill in the prior calendar year.
10. Requires CalRecycle, prior to the imposition of penalties, to provide at least two written notices to a manufacturer out of compliance with this bill and specifies compliance requirements. Specifies a manufacturer not in compliance with this bill is subject to an administrative civil penalty in an amount not to exceed $5,000. Authorizes CalRecycle to grant a reduction in an administrative civil penalty if the manufacturer submits a corrective action plan, as specified.
11. Requires CalRecycle to deposit all penalties recovered pursuant to this bill into the Rigid Container Account. Requires moneys in the account be expended by CalRecycle to assist local government agencies to develop and implement collection and processing systems for the recycling of materials subject to this bill.

FISCAL EFFECT:

1) CalRecycle will incur significant ongoing costs, in the hundreds of thousands to low millions of dollars (IWMA), to implement this bill.

For its part, CalRecycle estimates costs of approximately $2 million starting in fiscal year (FY) 2026-27 for 12 positions with an additional three positions starting in FY 2027-28 for an ongoing cost of approximately $2.5 million. CalRecycle notes these positions will work alongside the 10 staff currently maintaining the department’s Minimum Content Compliance Unit (MCCU). Existing and new staff will develop regulations, conduct compliance oversight and verification of yearly registrations, collect and verify annual reports, analyze postconsumer plastic economic trends, update IT infrastructure and data collection capabilities, develop and provide guidance to the regulated industry, and conduct enforcement.

CalRecycle anticipates more than 14,500 manufacturers may be impacted by the requirements of this bill. The rate of compliance under the existing RPPC program is approximately 50%, and the level of compliance with the new program will dictate the resources CalRecycle would need to dedicate to enforcement.

Costs would be borne by IWMA, which, according to CalRecycle, cannot support additional expenditures at this time. While the registration fee may be able to support some of the workload required by the bill, the fee is capped at $1,000 per manufacturer regardless of inflation or the size of the manufacturer.

2) Administrative civil penalty revenue of an unknown amount (Rigid Container Account).

COMMENTS:

1) Purpose. According to the author:

This bill would require the use of postconsumer recycled content (PCR) for a wider range of plastic packaging and durable plastic goods by updating California’s Rigid Plastic Packaging Container (RPPC) law, passed in 1991. Today, the increased use of plastic packaging, including new film, or soft plastics, along with growing concerns about reducing plastic pollution, demonstrate a strong need to update this law to best serve the state’s goals.

2) Background. According to CalRecycle, the RPPC law was enacted in 1991 to reduce the amount of plastic waste disposed in the state’s landfills and increase the use of recycled postconsumer plastic. Manufacturers that sell or offer for sale products in RPPCs in California must meet one of the compliance options outlined in the law. The RCTP program is similarly intended to reduce waste from landfills and promote the use of recycled plastics to build a circular economy. To achieve this, the law requires specific amounts of recycled plastic postconsumer material (RPPCM) be used by manufacturers, and requires reporting by wholesalers, manufacturers, and RPPCM suppliers. Manufacturers and wholesalers must submit compliance certifications by March 1 of each year, and CalRecycle publishes a list of compliant and noncompliant entities by July 1 of each year. Noncompliant companies are ineligible for state contract awards until CalRecycle determines they are compliant.

SB 54 (Allen), Chapter 75, Statutes of 2022, establishes several enforceable goals to be achieved by 2032, including: reducing single-use plastic packaging and food service ware by 25%, recycling 65% of single-use plastic packaging and food service ware, and ensuring that 100% of single-use packaging and plastic food service ware is either recyclable or eligible to be labeled as compostable.

This bill is sponsored by the Association of Plastics Recyclers (APR). According to APR, current law covers a limited set of single-use rigid plastic containers, and this bill would update the list of products to include rigid plastics over five gallons, flexible plastic packaging, and durable plastic goods, including nursery pots, plastic pails and buckets, and curbside recycling and trash carts. APR argues “this bill will complement SB 54 and help ensure its success--the increased use of recycled content in plastic products and packaging is needed to reach the recycling targets under SB 54.” Further, APR argues the bill ensures PCR use by tightening compliance mechanisms and promotes integrity through third-party certification of recycled content.

The California Manufacturers and Technology Association and a coalition of trade associations are opposed to “standalone packaging sustainability legislation that constructs unnecessary challenges to achieving the ambitious goals set within the comprehensive state [extended producer responsibility] program [SB 54].” The coalition contends this bill burdens manufacturers complying with the reporting and fee requirements under SB 54 with “redundant reporting and fees.”

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 29, 2025

ASSEMBLY COMMITTEE ON JUDICIARY

Ash Kalra, Chair

ABPCA Bill Id:AB 973

Author:(Hoover) – As Amended Ver:April 22, 2025

SUBJECT: Recycling: plastic trash bags: plastic packaging and products

KEY ISSUE: should the provisions of the rigid plastic packaging container recycling law be repealed and recast to expand the scope of the law and to boost the amount of postconsumer plastic used in new plastic products?

SYNOPSIS

Plastic pollution poses a significant environmental and public health risk. Seeking to address this risk, the Legislature has enacted a series of statutes designed to promote plastic recycling, bolster the plastic recycling market, and ensure the use of recycled plastics in new products. One of California’s first plastic recycling laws was the Rigid Plastic Packaging Container recycling law which required some postconsumer recycled plastics to be reused in new products. However, as a result of changing market conditions and subsequent legislative enactments, the 30-year old Rigid Plastic Packaging Container recycling law is showing its age and losing its effectiveness.

This bill would repeal the existing Rigid Plastic Packaging Container recycling law and replace its provisions with a new, broader, plastic recycling statute. The bill would expand the types of products that must utilize postconsumer recycled plastics in their manufacturing and boosts the percentage of recycled plastics that must be used in new products. The bill authorizes the Department of Resources Recycling and Recovery to monitor manufacturers’ compliance with the law and impose civil penalties for noncompliance.

This measure is sponsored by the Association of Postconsumer Plastic Recyclers and is supported by several environmental and waste management organizations. The proponents highlight the need for a sustainable plastics recycling market in this state, and note that requiring greater use of postconsumer recycled material will support this market while providing environmental benefits by lessening the need for virgin plastic production. This measure is opposed by plastic packaging manufacturers who contend that this bill is duplicative of existing law and therefore overly burdensome. The bill was previously heard and unanimously approved by the Committee on Natural Resources.

SUMMARY: Repeals the existing Rigid Plastic Packaging Container recycling law and replaces the law with a new statutory scheme for incorporating postconsumer recycled materials into rigid and flexible packaging. Specifically, this bill:

1. Requires, on or before July 1, 2026, and on or before July 1 of each year thereafter, a manufacturer of covered plastic products to do both of the following:
   1. Register with the Department of Resources Recycling and Recovery; and
   2. Pay an annual registration fee, unless the Department deems the manufacturer to be a small manufacturer, as specified.
2. Requires the registration specified in 1) to include the following:
   1. The name of the manufacturer being registered;
   2. The brand name of each of the manufacturer’s covered products;
   3. The brand name of each of the manufacturer’s exempt products;
   4. For the prior calendar year, the total weight of the manufacturer’s covered products sold in the state and the total weight by each covered product category;
   5. For the prior calendar year, the average percentage of postconsumer recycled content used by the manufacturer for each covered product category sold in the state;
   6. Proof of third-party certification, as specified in 8);
   7. Any other information as required by any applicable regulations adopted by the Department of Resources Recycling and Recovery.
3. Requires the Department of Resources Recycling and Recovery to provide a method for submitting the registration required by 1) electronically.
4. Requires a manufacturer to meet the following annual minimum postconsumer recycled content percentages on average for the total quantity of covered products, by weight, that are sold, offered for sale, or distributed in or into the state:
   1. Except as specified in b), c), and d), on and after January 1, 2028, for covered products, no less than 30 percent postconsumer recycled content plastic by weight;
   2. For rigid plastic containers, no less than 25 percent postconsumer recycled content plastic by weight;
   3. For plastic trash bags, no less than 10 percent postconsumer recycled content plastic by weight; and
   4. For roll carts, commencing January 1, 2028, no less than 10 percent postconsumer recycled content plastic by weight, and commencing on January 1, 2030, no less than 30 percent postconsumer recycled content plastic by weight.
5. Provides that for each pound of postconsumer resin purchased from a source in state or in adjacent states, as determined and verified by the Department of Resources Recycling and Recovery, for use in the manufacture of covered products with recycled plastic postconsumer material in compliance with this bill, the Department must credit the certifying manufacturer with having used 1.5 pounds of postconsumer resin toward compliance with the requirements of 4).
6. Requires, until January 1, 2030, a manufacturer to achieve compliance with the postconsumer recycled content requirements in 4) based on the average amount of postconsumer recycled content, by weight, contained in its covered products, as specified.
7. Provides that a manufacturer may demonstrate compliance with 6) by submitting data allocated on a per capita basis for California to approximate the required information, as specified.
8. Requires, commencing January 1, 2029 a manufacturer to submit proof of third-party certification of the postconsumer recycled content of each of its covered products.
9. Subjects the third-party certification specified in 8) to audits by the Department of Resources Recycling and Recovery.
10. Requires, commencing April 1, 2028, a manufacturer to provide an annual report to the Department of Resources Recycling and Recovery that includes the amount, in pounds, of virgin plastic by resin type, and the amount, in pounds, of postconsumer recycled content by resin type used and the source, by country of origin, for each covered product category that is sold, offered for sale, or distributed in or into the state, including the total postconsumer recycled content resins as a percentage of total plastic weight.
11. Authorizes the Department of Resources Recycling and Recovery to grant a waiver, not to exceed two years, from the requirements of 4) if the Department finds all of the following:
    1. The manufacturer cannot comply with 4) and remain in compliance with applicable rules and regulations adopted by the United States Food and Drug Administration, or any other state or federal law, rule, or regulation;
    2. It is not technologically feasible for the manufacturer to comply with 4);
    3. The manufacturer cannot comply with 4) due to supply limitations;
    4. The manufacturer cannot comply with 4) due to any reason the Department may specify in regulations;
12. Requires a manufacturer’s request for a waiver pursuant to 11) to contain the following:
    1. Documentation from a federal or state agency or a third-party expert, as appropriate, demonstrating that one of the criteria in 11) was met; and
    2. A waiver application fee.
13. Provides that a violation of this bill, committed prior to January 1, 2029, subjects a manufacturer to an administrative civil penalty of 40 cents per pound of virgin material that was used in place of recycled material.
14. Authorizes, commencing January 1, 2029, the Department of Resources Recycling and Recovery to adopt a formula and methodology for calculating a per-pound penalty for each resin type that is, over the average of the previous six months, greater than the market price differential between postconsumer resin and virgin resin varieties according to one or more national price indices as selected by the Department.
15. Requires, prior to the imposition of penalties pursuant to 13) or 14), the Department of Resources Recycling and Recovery to provide a written notice to a manufacturer that it is not in compliance with this bill.
16. Requires a manufacturer to comply with the terms of the notice issued pursuant to 15) within 30 days.
17. Provides that if the Department of Resources Recycling and Recovery issues a second notice pursuant to 15) and the manufacturer fails to comply with either notice, the Department may impose a civil penalty not to exceed five thousand dollars ($5,000).
18. Authorizes the Department of Resources Recycling and Recovery to grant a reduction in an administrative civil penalty if the manufacturer submits a corrective action plan, as specified.
19. Requires the Department of Resources Recycling and Recovery to deposit all penalties recovered pursuant to this bill into the Rigid Container Account which provides funding for local governmental agencies to develop and implement collection and processing systems for the recycling of materials that are subject to this bill.
20. Authorizes the Department of Resources Recycling and Recovery to adopt regulations to implement this bill.
21. Provides that any proprietary information submitted to the Department of Resources Recycling and Recovery in accordance with this bill is to be exempt from disclosure pursuant to the California Public Records Act.
22. Defines various terms.
23. Adopts findings and declarations.

EXISTING LAW:

1. Establishes the Rigid Plastic Packaging Container recycling law. (Public Resources Code Section 42300, et seq.)
2. Requires, every rigid plastic packaging container sold or offered for sale in this state to, on average, meet one of the following criteria:
   1. Be made from 25 percent postconsumer material;
   2. Have a recycling rate of 45 percent if it is a product-associated rigid plastic packaging container or a single resin type of rigid plastic packaging container, as specified;
   3. Be a reusable package or a refillable package;
   4. Be a source reduced container; or
   5. Is a container containing floral preservative that is subsequently reused by the floral industry for at least two years. (Public Resources Code Section 42310.)
3. Requires a manufacturer of a rigid plastic packaging container to submit a report to the Department of Resources Recycling and Recovery demonstrating that the manufacturer is taking, and will continue to take, all feasible actions to ensure the reduction, recycling, or reuse of the rigid plastic packaging containers. (Public Resources Code Section 42310.1 (c)(1).)
4. Requires manufacturers to certify compliance with the Rigid Plastic Packaging Container recycling law to the Department of Resources Recycling and Recovery. (Public Resources Code Section 42320.)
5. Authorizes the imposition of fines not to exceed one hundred thousand dollars ($100,000) for violations of the Rigid Plastic Packaging Container recycling law, including but not limited to providing false or misleading certificates of compliance as specified in 4). (Public Resources Code Section 42322.)

FISCAL EFFECT: As currently in print this bill is keyed fiscal.

COMMENTS: Plastic products do not breakdown or degrade naturally, thus plastics and plastic pollution remains in the environment long past a plastic product’s useful life. Seeking to reduce the amount of plastics entering California landfills, in the early 1990s, the Legislature enacted the Rigid Plastic Packaging Container recycling law. (SB 951 (Hart) Chap. 1076, Stats. 1993.) Over the course of the 30 years the Rigid Plastic Packaging Container recycling law has been in place, the plastics recycling market has experienced significant upheaval. For example, China, the largest importer of recycled plastics, has significantly reduced the amount of plastic it is willing to import from the United States. Given that the United States lacks meaningful markets for recycled plastics, this country is once again disposing of most plastic waste in landfills. Seeking to reuse more plastics, this bill would repeal and replace the Rigid Plastic Packaging Container recycling law with a new statutory scheme designed to stimulate the development of a localized plastics recycling market and utilize more recycled plastics in consumer products. In support of this bill, the author states:

This bill would require the use of postconsumer recycled content (PCR) for a wider range of plastic packaging and durable plastic goods by updating California’s Rigid Plastic Packaging Container (RPPC) law, passed in 1991. Today, the increased use of plastic packaging, including new film, or soft plastics, along with growing concerns about reducing plastic pollution, demonstrate a strong need to update this law to best serve the state’s goals., A 2024 University of California, Berkeley study found that the most impactful policy to reduce plastic pollution is to require the use of more recycled plastics to make new products. Companies can now use recycled content in more applications and at higher rates than previously required. By modernizing and expanding our recycled content laws, California can build a stronger recycling system and reduce plastic pollution.

Plastics and Climate Change. As a result of the breakdown of the global plastic recycling market, far too many plastics are being disposed of in landfills. Because plastic products do not biodegrade, plastics and microplastics are leeching into the environment. As a coastal state, a significant portion of California’s plastic waste ends up in the Pacific Ocean. The plastic pollution crisis that overwhelms the world’s oceans is also a significant and growing threat to the Earth’s climate. At current levels, greenhouse gas emissions from the plastic lifecycle threaten the ability of the global community to keep the global temperature rise below 1.5°C. If plastic production continues to grow at the current rate, by 2030, these emissions could reach levels equivalent to the emissions released by more than 295 coal-fired power plants.

Nearly every piece of plastic begins as a fossil fuel, and greenhouse gases are emitted at each stage of the plastic lifecycle. For example, 40% of plastic packaging waste is disposed of at sanitary landfills, 14% goes to incineration facilities and 14% is collected for recycling. Incineration creates the most carbon dioxide emissions among the plastic waste management methods. Further, it is estimated that by 2050, plastic will be responsible for up to 13% of the total “carbon budget” – equivalent to 615 coal-fired power plants. Oftentimes, the link between climate change and plastics is overlooked, but its clear impacts could be detrimental to California’s goal of combatting climate change. (Center for International Environment Law, Plastics & Climate: The Hidden Costs of a Plastic Planet (May 2019), available at https://www.ciel.org/wp-content/uploads/2019/05/Plastic-and-Climate-FINAL-2019.pdf.)

California has grappled with plastic waste for decades. As a coastal state with many large watersheds that run into the Pacific Ocean, ensuring that plastic waste does not go into the ocean is critical to protecting California’s natural environment and food supply. Despite California’s efforts, the Pacific Ocean is home to a notorious patch of floating plastic debris. Even more troublesome is that as plastic breaks down it is easily ingested by fish and other oceanic species. A recent report suggested that all seven species of sea turtles, 81 of 123 known species of marine mammals, and nearly half of all sea bird species demonstrate evidence of plastic ingestion. (Lauren Roman et. al, Plastic Pollution is Killing Marine Megafauna, but how do we Prioritize Policies to Reduce Mortality? Conservation Letters- A Journal of the Society for Conservation Biology, Nov. 12, 2020, at p. 2.) The Center for Biological Diversity estimates that between 15 and 51 trillion pieces of plastic pollute the words oceans. (https://www.biologicaldiversity.org/campaigns/ocean_plastics/#:~:text=Plastics%20pollution%20has%20a%20direct,or%20getting%20entangled%20in%20it.) Marine plastic is particularly troublesome for its ability to move through the food chain, even into humans who eat fish and other seafood.

To address this issue, California originally adopted the At-Store Recycling Program for plastic bags in 2006. (AB 2449 (Levine) Chap. 845, Stats. 2006.) That program was designed to require grocers and other large retailers to provide bins within their stores where consumers could deposit used plastic bags. Unfortunately, that program was permitted to sunset when the Legislature was facing bill restrictions during the early stages of the pandemic. However, building on the at-store recycling program and recognizing that despite the state’s efforts plastic bag pollution still proliferated in the state, the Legislature passed SB 270 by now-United States Senator Alex Padilla to ban all single use plastic bags in California. (SB 270 (Padilla) Chap. 850, Stats. 2014.) In addition to banning single-use plastic bags, that bill required consumers to purchase a reusable plastic or paper bag (a far more environmentally friendly option in California) in lieu of the single-use bags. Similarly in 2015, the Legislature passed a ban on plastic microbeads in consumer beauty projects in an attempt to keep these tiny plastic particles out of state waterways. (AB 888 (Bloom) Chap. 594, Stats. 2015.) Finally, to reduce the amount of single use plastics on the market the Legislature enacted SB 54 (Allen) Chap. 75, Stats. 2022, to generate source reductions and a circular economy for single use plastic products.

This bill builds on recent efforts to reduce plastic waste. Recognizing the deficiencies in the Rigid Plastic Packaging Container recycling law, this bill repeals that law and replaces it with a new structure for ensuring the use of recycled plastics. First this bill expands the scope of plastics covered by the recycling laws to include rigid plastics and plastic packaging. The bill increases the required amount of recycled content that must be included in new plastic products and tailors the bill to promote the use of postconsumer recycled content. These provisions seek to reduce reliance on virgin plastic and drive markets for recycled content plastic to foster a circular economy.

This bill also authorizes the Department of Recourses Recycling and Recovery (Cal Recycle) to impose civil penalties on manufacturers who fail to meet the bills recycling and postconsumer plastic use provisions. Recognizing the variability in the plastics market, the bill authorizes Cal Recycle to reduce penalties or provide temporary exemptions from the law if the manufacturer can justify such a request. Finally, the bill exempts certain proprietary information provided to Cal Recycle to demonstrate compliance with this bill or to seek a temporary reprieve from the bill from disclosure under the Public Records Act.

The enforcement provisions of this measure provide ample opportunity for manufacturers to lower penalties and defend their conduct. This bill authorizes Cal Recycle to administratively impose civil penalties on manufacturers. Given the lack of court involvement at the initial penalty stage, administrative penalties require extra scrutiny to ensure that due process is protected. This bill provides several levels of appropriate protections for operators. First, the bill mandates that Cal Recycle provide manufacturers notice of noncompliance before any penalties can be imposed. Secondly, the bill authorizes Cal Recycle to reduce penalties if the manufacturer and the Department agree on a corrective action plan. Additionally, the bill authorizes Cal Recycle to defer enforcement of the entire bill if a manufacturer can demonstrate that market conditions are rendering compliance unfeasible. Finally, like all agency actions, the manufacturer retains the right to seek court oversight of any agency action the manufacturer believes exceeds the Department’s legal authority. These safeguards appear more than sufficient to protect the due process rights of the manufacturer.

The California Public Records Act exemption for proprietary information appears warranted. Several aspects of the bill require manufacturers to submit proprietary information to Cal Recycle to demonstrate compliance with the bill or to seek exemptions from various requirements. Some of this information requires disclosures of information related to the composition of various products in the marketplace. Given that this information contains details a manufacturer may not want competitors to view, the bill provides a process for a manufacturer to request Cal Recycle withhold that information from public disclosure. Given that California law already protects trade secrets from public disclosure, this exemption to the Public Records Act appears reasonable.

This measure compliments SB 54 and prior legislative efforts related to plastic pollution. This measure is opposed by a coalition of plastic packaging manufacturers, who contend that this bill is duplicative of SB 54, the aforementioned bill that enacted a program to boost plastic recycling and a circular economy. While it is understandable that the opposition would prefer to avoid complying with an additional plastics-related law, the two bills are complementary and do not appear to be duplicative. Indeed, SB 54 focuses on promoting the proper collection and recycling of used plastic products. This bill is focused on utilizing postconsumer recycled plastic in the production of new plastic products. Rather than overlapping, these bills appear to deal with two different aspects of the recycled plastic lifecycle.

ARGUMENTS IN SUPPORT: This bill is sponsored by the Association of Postconsumer Plastic Recyclers and is supported by several environmental and waste management organizations. In support of the bill the Association of Postconsumer Plastic Recyclers writes:

Existing law covers a limited set of single-use rigid plastic containers. AB 973 would update the list of products to include rigid plastics over five gallons, flexible plastic packaging, and durable plastic goods, including nursery pots, plastic pails and buckets, and curbside recycling and trash carts. Mandates for the use of PCR have traditionally focused on single-use items, but AB 973 would mandate its use in durable products as well, which will greatly expand the use of recycled content and improve the economics for plastics recyclers in California and nationwide. Durable products are often large in scale and therefore can accommodate large amounts of PCR. This bill will drive change in California by expanding markets for recycled content and will be the most comprehensive in the nation to mandate the use of recycled content across the widest range of products.

To ensure a level playing field for all manufacturers, AB 973 would require manufacturers to submit to CalRecycle third-party certification to verify the use of postconsumer recycled content. This is important to ensure that companies are purchasing recycled plastics collected from households and businesses, rather than industrial scrap. Postconsumer recycled content supports the growth and stability of California's community recycling programs. By requiring manufacturers to provide proof that the material they use is third-party certified PCR, AB 973 holds all manufacturers accountable to the claims they make and creates a robust and enforceable law.

ARGUMENTS IN OPPOSITION: This bill is opposed by several plastic packaging manufacturers. A coalition letter opposing the bill notes:

Address Packaging Within the SB 54 Framework, Not Conflicting Requirements

We oppose AB 973, as the legislation runs counter to SB 54, the state’s groundbreaking packaging recycling, composting, and waste reduction law currently being implemented by the California Department of Resources, Recycling and Recovery (CalRecycle). As you are well aware, these programs are still in the rulemaking process but despite delays, producers must still meet statutory deadlines- to include explicit, ambitious program targets for source reduction and recycling rates. AB 973 creates superfluous requirements that create direct conflicts to compliance with the state extended producer responsibility program. We must oppose standalone packaging sustainability legislation that constructs unnecessary challenges to achieving the ambitious goals set within the comprehensive state EPR program, and ask instead that stakeholders prioritize the program’s success in reducing plastic pollution and increasing the sustainability of materials within the state.

The SB 54 EPR program mandates that packaging is recyclable or compostable by 2032, is source reduced by 25%, and recycled at unprecedented rates. However, the program explicitly excludes the use of postconsumer recycled content from the definition of source reduction and establishes an eight percent limit on reduction that can be achieved through the use of postconsumer recycled content. AB 973 piles postconsumer recycled content targets on top of the existing SB 54 program goals, creating a conflicting compliance burden.

The SB 54 program requires source reduction of plastic packaging by weight. Packaging made with postconsumer recycled content requires an increased use of material to reach a comparable quality to plastic packaging made of virgin material. The quality of packaging is fundamental to protecting product integrity and composition from contamination, breakage, and other factors impacting consumer use. Packaging using postconsumer recycled content requires more material and therefore, often weighs significantly more than plastic packaging made from all virgin materials. This creates an onerous, or even impossible compliance scenario for producers where meeting requirements within AB 973 increase the weight of packaging, and therefore, puts them in noncompliance with the SB 54 mandate.

The state EPR program creates substantive, ambitious goals to increase the circularity of packaging materials within California. Establishing conflicting postconsumer recycled content mandates is superfluous and will ultimately undermine progress spurred by the SB 54 program.

REGISTERED SUPPORT / OPPOSITION:

Support

Association of Postconsumer Plastic Recyclers (sponsor)

Californians Against Waste (if amended)
National Stewardship Action Council
Recycling Partnership
Republic Services - Western Region

Opposition

American Institute for Packaging and Environment
Consumer Brands Association
Flexible Packaging Association

Analysis Prepared by: Nicholas Liedtke / JUD. / (916) 319-2334

Date of Hearing: April 7, 2025

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Isaac G. Bryan, Chair

ABPCA Bill Id:AB 973 (

Author:Hoover) – As Introduced Ver:February 20, 2025

SUBJECT: Recycling: plastic packaging and products

SUMMARY: Repeals the state’s Rigid Plastic Packaging Container (RPPC) recycling requirements (RPPC Law) and replaces it with a packaging and plastic packaging and products law that covers RPPCs and film plastic packaging.

EXISTING LAW:

1. Pursuant to the RPPC Law (Public Resources Code (PRC) 42300 et seq.):
   1. Defines “rigid plastic packaging container” as any plastic package having a relatively inflexible finite shape or form, with a minimum capacity of eight fluid ounces or its equivalent volume and a maximum capacity of five fluid gallons or its equivalent volume, 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.
   2. Requires RPPCs sold or offered for sale in the state to meet, on average, the following:
      1. Be made from at least 25% postconsumer material;
      2. Have a recycling rate of 45%, as specified;
      3. Be a reusable or refillable package;
      4. Be a source-reduced container; or,
      5. Is a container for floral preservative that is subsequently reused by the floral industry.
   3. Requires the Department of Resources Recycling and Recovery (CalRecycle) to adopt regulations to implement these requirements.
   4. Establishes penalties for violations of the RPPC Law of up to $100,000, as specified.
   5. Authorizes CalRecycle to issue waivers from the postconsumer recycled content requirements under specified circumstances.
   6. Exempts from the RPPC Law containers that are destined for shipment to destinations outside of the state, contain drugs, medical devices, cosmetics, food, medical food, or infant formula, contain toxic or hazardous products, as specified, or are manufactured for use in the shipment of hazardous materials, as specified.
2. Pursuant to the California Beverage Container Recycling and Litter Reduction Act (Bottle Bill):
   
   1. From January 1, 2022 to December 31, 2024, requires plastic beverage containers, as defined, to contain a minimum of 15% postconsumer recycled plastic, on average;
      
   2. From January 1, 2025 to December 31, 2029, requires plastic beverage containers, as defined, to contain a minimum of 25% postconsumer recycled plastic, on average; and,
      
   3. On and after January 1, 2030, requires plastic beverage containers, as defined, to contain a minimum of 50% postconsumer recycled plastic, on average. (PRC 14547)
      
3. Pursuant to SB 54 (Allen), Chapter 75, Statutes of 2022, establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act (Act) (PRC 42040 et seq.), which:

• 1. Requires, by January 1, 2024, producers of covered material to form and join a producer responsibility organization (PRO), subject to specified requirements and CalRecycle approval, to carry out the requirements of the Act. Prohibits a producer of covered material from selling, offering for sale, importing, or distributing covered materials in the state unless the producer is approved to participate in the PRO.
     
  2. Requires that all covered material offered for sale, distributed, or imported into the state on and after January 1, 2032, is recyclable in the state or eligible to be labeled "compostable," as specified.
     
  3. Requires that all plastic covered material offered for sale, distributed, or imported into the state to meet the following recycling rates:
     1. Not less than 30% of covered material on and after January 1, 2028;
     2. Not less than 40% of covered material on and after January 1, 2030; and,
     3. Not less than 65% of covered material on and after January 1, 2032.
        
  4. Prohibits producers of expanded polystyrene (EPS) food service ware from selling, offering for sale, distributing, or importing into the state EPS food service ware unless the producer demonstrates to CalRecycle that all EPS meets the following recycling rates:
     1. Not less than 25% on and after January 1, 2025;
     2. Not less than 30% on and after January 1, 2028;
     3. Not less than 50% on and after January 1, 2030; and,
     4. Not less than 65% on and after January 1, 2032 and annually thereafter.
  5. By January 1, 2032, requires the PRO to develop and implement a plan to achieve 25% reduction by weight and 25% reduction by plastic component for covered material sold, offered for sale, or distributed in the state, as prescribed, including interim targets of 10% by January 1, 2027, and 20% by January 1, 2030.
     
  6. Establishes civil penalties for violations of SB 54 of up to $50,000 per day per violation, as specified.
     

THIS BILL repeals the state’s RPPC Law, and instead:

1. Defines “covered product” as a rigid plastic container, as specified, a rigid plastic product, as specified, film plastic used in packaging overwrap and shrink wrap, lawn or garden bags, heavy-duty industrial bags, and plastic trash bags.
2. Exempts from this bill:
   1. Packages or containers that contain food;
   2. Products that are associated with a product that is 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 medical devices or prescription drugs;
   4. Packaging used for drugs that are used for animal medicines;
   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, as specified;
   6. Packaging used for infant formula;
   7. Packaging used for medical food, as specified;
   8. Packaging used for fortified oral nutritional supplements used for persons who require supplemental or sole source nutrition, as specified;
   9. Packaging used to contain products regulated by the Federal Insecticide, Fungicide, and Rodenticide Act;
   10. Plastic packaging containers that are used to contain and ship products that are classified for transportation as dangerous goods or hazardous materials, as specified;
   11. A product manufactured for use in the shipment of hazardous materials, as specified;
   12. Packaging used to contain hazardous or flammable products, as specified;
   13. A reusable or refillable package;
   14. Containers that are 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; and,
   16. Other items as designated by CalRecycle in regulation for a period not to exceed five years.
       
3. Defines “plastic” as a synthetic material made of linking monomers through a chemical reaction to create an organic polymer chain that can be molded or extruded at high heat into various solid forms retaining their defined shapes during the life cycle and after disposal. Specifies that “plastic” does not include material that is designed to be composted in a municipal or industrial anaerobic composting facility and that is certified by a recognized third-party independent verification body as meeting the standards therefore established by the American Society for Testing and Materials (ASTM) in ASTM D6400 or D6868.
4. Requires CalRecycle to adopt regulations to implement the bill, as specified.
5. Authorizes CalRecycle to review and adjust the postconsumer recycled content requirements and requires CalRecycle to specify a limited time period and applicable conditions to the adjustment, based on specified considerations.
6. Authorizes CalRecycle to participate in the establishment and implementation of a multistate clearinghouse to assist in carrying out the requirements of this chapter and to help with coordinating the review of registrations, waiver requests, and certifications; and, implementing education and outreach activities.
7. Specifies that if a manufacturer authorizes a representative organization to implement the bill’s requirements, the organization shall act on behalf of the manufacturer to ensure that specified requirements are fulfilled.
8. Specifies that if a manufacturer authorizes a representative organization to implement the bill’s requirements, the organization, and not the manufacturer, are subject to any enforcement actions taken for specified requirements.
9. Specifies that the bill does not apply to an exempted product, except the bill’s registration requirement.
10. On or before July 1, 2026, and on or before July 1 ever year thereafter, requires manufacturers to register with CalRecycle and pay the annual registration charge. Exempts small manufacturers, as defined, from the annual registration charge. Requires the registration to include:
    1. The name of the manufacturer and the brand name of each of the manufacturer’s covered and exempt products;
    2. The total weight of the manufacturer’s covered products solid in the state and the total weight by product category for the prior calendar year;
    3. The average percentage of postconsumer recycled content used by the manufacturer for each covered product category solid in the state;
    4. Proof of third-party certification; and,
    5. Any other information required by regulation.
       
11. Requires manufacturers to meet the following annual minimum postconsumer recycled content percentages, on average, for the total quantity of covered products by weight that are sold, offered for sale, or distributed into the state:
    1. On and after January 1, 2028:
       1. For rigid containers with a maximum capacity of 5 gallons, no less than 25%;
       2. For plastic trash bags, no less than 10%;
       3. For roll carts, no less than 10%; and,
       4. For all other covered products, no less than 30%;
    2. On and after January 1, 2030, for roll carts, no less than 30%.
       
12. Specifies that for each pound of postconsumer resin purchased from a source in state or in adjacent regions, as determined by CalRecycle, for use in the manufacture of covered products, CalRecycle shall credit the certifying manufacturer with using 1.2 pounds of postconsumer resin.
    
13. Until January 1, 2030, authorizes manufacturers to calculate and report the annual average postconsumer recycled content contained in all of their covered products, whether in or out of state. On and after January, 1, 2030, requires manufacturers to calculate and report the average based on products sold or distributed in state.
    
14. On and after January 1, 2034, requires manufactures to calculate the amount of postconsumer recycled content in each covered product category sold or offered for sale within the state.
    
15. Requires manufacturers to submit an annual report to CalRecycle on and after January 1, 2028, which includes the amount, in pounds, of virgin plastic by resin type and the amount of postconsumer recycled content by resin type, as specified.
    
16. Authorizes CalRecycle, upon application by a manufacturer, to grant a waiver of up to two years from the postconsumer resin content requirements if CalRecycle finds:
    
    1. The manufacturer cannot comply with the requirement and remain in compliance with applicable rules and regulations adopted by the United States Food and Drug Administration, or any other state or federal law, rule, or regulation;
    2. It is not technologically feasible for the manufacturer to comply with the requirement;
    3. The manufacturer cannot meet the requirement because of supply limitations;
    4. The manufacturer cannot meet the requirement because of a reason authorized by CalRecycle in regulations.
       
17. Authorizes CalRecycle reduce the amount of civil penalties if the manufacturer submits a corrective action plan that is approved by CalRecycle and includes the reasons for noncompliance and planned steps to comply, as specified.
    
18. For a violation of the postconsumer recycled content requirements, requires CalRecycle to assess a civil penalty based on a per-pound basis for each pound of virgin material that was used by a manufacturer in its products instead of the required recycled material. Until January 1, 2029, specifies that the penalty is $0.20 per pound. After January 1, 2029, authorizes CalRecycle to use a formula and methodology to calculate the penalty for each resin type that is, over the prior six months, greater than the market price difference between postconsumer resin and virgin resin, as specified. Requires CalRecycle to publish a report on the fines and penalties levied every year.
    
19. Requires CalRecycle to provide written notice to a manufacturer that is not in compliance with the registration and waiver requirements and to offer information on how to comply. Requires CalRecycle to provide at least two notices by certified mail before assessing a penalty. After the written notice, a manufacturer in violation of these requirements is subject to a civil penalty not to exceed $1,000 per day.
    
20. Maintains the existing Rigid Container Account under the RPPC Law. Requires fines and penalties to be paid into the account for purposes of assisting local governmental agencies with developing and implementing collection and processing systems for the recycling of materials subject to the bill, for the development of markets for these materials, and for CalRecycle’s actual and reasonable costs of implementing the bill.
    
21. Upon appropriation by the Legislature, authorizes CalRecycle to expend funds from the Integrated Waste Management Account to implement the bill.
    
22. States related legislative findings and declarations.

FISCAL EFFECT: Unknown

COMMENTS:

1. Plastic. Plastics pose a threat to the environment from origin to end-of-life. Plastic production is responsible for three and a half percent of all greenhouse gas emissions—more than the entire aviation sector. In 2021, global plastics production was estimated at 390.7 million metric tons, a 4% increase from the previous year. The United Nations Environment Programme reports that only 9% of all plastic ever made has been recycled, 12% has been incinerated, and the remaining 79% has accumulated in landfills or the environment.
   
   Once plastics enter the environment, they remain there for hundreds to thousands of years. Plastics do not break down into their constituent parts, but instead break down into smaller and smaller particles, or microplastics. Because they are so small, microplastics are carried in the air and in water, and are easily ingested or inhaled by living things and accumulate up the food chain. Microplastics have been found in the most pristine natural environments on earth, including in the deep ocean, Antarctic sea ice, and in the sand of remote deserts. Micoplastics are found in household dust and drinking water (bottled and tap), and humans are inhaling and consuming them. A March, 2024, study published in Science of the Total Environment identified microplastics in all human tissues sampled, with the polyvinyl chloride (PVC) being the dominant polymer. In February of this year, a study published in Nature Medicine found microplastics in human brains in higher concentrations than other body systems. This plastic accumulation increased 50% over the past eight years. Shockingly little information exists about the potential health impacts of microplastics exposure. Laboratory studies have found that microplastics increase the risk of cancer and disrupt hormone pathways in lab rats.

Plastic pollution and the impacts of microplastics on human health fall disproportionately on marginalized communities. Nearly all plastic is produced from fossil fuels and generates greenhouse gas emissions and toxic chemicals that impact air and water quality. About 14% of oil is used in petrochemical manufacturing, a precursor to producing plastic. By 2050, plastic production is predicted to account for 50% of oil and fracked gas demand growth. According to Feeding the Plastics Industrial Complex: Taking Public Subsidies, Breaking Pollution Limits, a report released on March 14, 2024, by the Environmental Integrity Project, “more than 66% of people within three miles of factories that manufacture the main ingredients in plastic products are people of color living in communities that are over-exposed to air pollution while schools and other public services are chronically underfunded.” The report notes that these facilities receive billions in subsidies while repeatedly violating environmental laws and regulations. For example, Indorama, the world’s largest producer of polyethylene terephthalate (PET) resins used in beverage containers and other single-use packaging, operates a facility in Louisiana that cracks natural gas or oil into ethylene. The facility received both a $1.5 million grant from the state and an exemption from local taxes – a subsidy estimated to be worth at least $73 million over 10 years. In return, Indorama violated its permitted air pollution control limits. In one example, over five months in 2019, the facility released more than 90 times the permitted level of volatile organic compounds. Instead of coming into compliance after multiple violations, the state revised the facility’s pollution control permit to allow higher levels of emissions.

Recycling plastic into new products is one way to reduce plastic pollution, as it keeps the recycled plastic out of the environment and reduces our dependence on virgin resin. However, recycling is currently only feasible for some of the more common, and least toxic, forms of plastic. The most effective way to tackle the plastic pollution crisis is to use less of it, particularly the types that are not readily recyclable.

1. Recycled content. The US has not developed significant markets for recycled content materials, including plastic. Historically, China has been the largest importer of recyclable materials. In an effort to improve the quality of the materials it accepts and to combat the country's significant environmental challenges, China established Operation National Sword in 2017, which included inspections of imported recyclable materials and a filing with the World Trade Organization indicating its intent to ban the import of 24 types of scrap, including PET, high density polyethylene (HDPE), PVC, and PS beginning January 1, 2018. In November 2017, China announced that imports of recyclable materials that are not banned will be required to include no more than 0.5 percent contamination.
   

Following China's actions, other Southeast Asian countries have enacted policies limiting or banning the importation of recyclable plastic materials. Last year, Malaysia and Vietnam implemented import restrictions. India and Thailand have also banned scrap plastic imports.

These limitations are important to reducing plastic pollution worldwide, as these countries have received low-quality mixed plastic waste that is challenging to recycle and has little to no scrap value. The plastic is sorted to remove the materials that can be easily recycled, and the rest is left to be burned or otherwise disposed. In countries with inadequate waste management systems, this can include being left on beaches or otherwise dumped into the environment, contributing to the ocean plastic pollution crisis.

In order to foster markets for recycled materials, the state has established recycled content requirements for various products. The RPPC Law requires that RPPCs contain at least 25% postconsumer material, have a recycling rate of 45%, be reusable or refillable, or be a source-reduced container. Plastic beverage containers subject to the state’s Bottle Bill are required to contain a minimum of 25% postconsumer recycled plastic through 2029, and 50% on and after January 1, 2030. Statute requires that newsprint contain a minimum of 25% recycled content. Plastic trash bag manufacturers are required to ensure that the bags contain a quantity of postconsumer recycled content equal to 10% of the weight of the regulated bag, or ensure that at least 30% of the weight of material used in all of its plastic products is postconsumer recycled content.

1. Compostable plastic. Compostable plastics are plastics that are designed to decompose under certain conditions. There are various standards in place to determine if a plastic product is compostable or not. Generally, the state has relied upon ASTM International standards, which include specifications for home compostable (D6868-19) and for industrially compostable (D6400-19). The home compost standard requires degradation within 180 days. The standard for industrially compostable runs between 90 to180 days; however, California’s industrial compost operations process material more quickly than those timelines, resulting in incomplete degradation of the materials composted. In practice, compostable plastics are screened out of most industrial compost operations and landfilled.

In recognition of the issues with the current ASTM standards, SB 1335 (Allen), Chapter 610, Statutes of 2018, which establishes reuse, recycling, and compost requirements for food packaging used in state facilities, required CalRecycle to adopt regulations to create standards for those terms. For composability, CalRecycle regulations require that the packaging must meet the ASTM standards D6400-19 or D6868-19, demonstrate 90% biodegradation within 60 days, and comply with related statutory requirements to be labeled “compostable” in the state.

Further, the United States Department of Agriculture’s National Organic Program (NOP), which sets rules and regulations for the certification of organic products, including compost, prohibits the inclusion of compostable plastic as a feedstock. Therefore, any compost that contains compostable plastic is prohibited from being labeled organic or used on organic crops. This prohibition limits the marketability of the finished compost, discouraging many compost facility operators from accepting compostable plastic.

1. RPPC. The state’s RPPC Law was established in 1991 to reduce the amount of plastic waste disposed in California’s landfills and to develop markets for recycled content materials. RPPCs include containers that are made from rigid plastic, such as tubs, buckets, bottles, trays, and other rigid plastic containers. The law has seven compliance options: 1) The container must contain at least 25% postconsumer recycled content; 2) The container must be routinely reused at least five times; 3) The container must be recycled at a 45% recycling rate; 4) The product manufacturer or another company under the same corporate ownership uses postconsumer material generated in California equivalent to or exceeding 25% postconsumer material; 5) The RPPC is source reduced by container weight, product concentration, or a combination of the two; 6) The container is routinely returned and refilled by the product manufacturer at least five times; or, 7) The container contains floral preservatives and is reused by the floral industry for at least two years.
2. SB 54. SB 54 (Allen), Chapter 75, Statutes of 2022, established the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which created sweeping new minimum recycling requirements for single-use plastic packaging and food service ware (covered material), source reduction requirements for plastic covered material, and prohibits the sale or distribution of expanded polystyrene food service ware unless it meets accelerated recycling rates. SB 54 requires producers to comply with the bill’s requirements through an expanded producer responsibility program. Under SB 54, covered material must meet specified recycling and source reduction requirements by 2027, which ramp up until all covered material must achieve and maintain a 65% recycling rate and a 25% source reduction requirement by 2032. This bill additionally requires producers, through the PRO, to pay $500 million per year for ten years (from 2027 to 2037) to be deposited into the California Plastic Pollution Mitigation Fund, which is established to fund various environmental and public health programs.
3. This bill. This bill replaces the current, outdated RPPC Law with a new plastic packaging and products law that covers RPPCs and film plastic packaging. AB 973 also increases the minimum content to 25% for rigid containers with a maximum capacity of five fluid gallons, 10% for plastic trash bags, 10%-30% for roll carts, and 30% for other covered products. The bill eliminates the alternative compliance options available under the RPPC Law to focus only on the use of postconsumer recycled content. This is intended to reduce reliance on virgin plastic and drive markets for recycled content plastic to foster a circular economy. Additionally, this bill grants a small increase in credit for recycled plastic purchased from in-state or in adjacent regions to encourage the use of California and other nearby domestic recycled content and the related businesses and jobs.
4. Author’s statement:

This bill would require the use of postconsumer recycled content plastic (PCR) for a wider range of plastic packaging and durable plastic goods by updating California’s Rigid Plastic Packaging Container (RPPC) law, originally passed in 1991. Today, the increased use of plastic packaging, including new film or soft plastics, along with growing concerns about reducing plastic pollution, demonstrate a strong need to update this law to best serve the state’s goals. Furthermore, a 2024 University of California, Berkeley study found that the most impactful policy to reduce plastic pollution is to require the use of more recycled plastics to make new products. Given that companies can now use recycled content in more applications and at higher rates than previously required, it’s time for California to modernize and expand its recycled content laws. This will allow California to build a stronger recycling system and reduce plastic pollution.

1. Suggested amendments. The committee may wish to amend the bill to:
   1. Repeal the Plastic Trash Bag Law, which is being replaced by this bill.
   2. Remove the definition of “plastic,” which is unnecessary and inaccurate.
   3. Increase the credit for postconsumer recycled content from in state or adjacent states from 1.2 pounds for each pound used to 1.5 pounds.
   4. Clarify that postconsumer recycled content credited accurately reflects the amount of postconsumer recycled content plastic in the finished covered product.
   5. Codify CalRecycle audit authority over the program.
   6. Consolidate and clarify the enforcement provisions. Increase the initial penalty for violations of the recycled content requirements from 20 cents per pound to 40 cents per pound, and increase the administrative civil penalty amount from up to $1,000 to up to $5,000.
   7. Make related technical and clarifying amendments.
2. Double referral. This bill has also been referred to the Assembly Judiciary Committee.

REGISTERED SUPPORT / OPPOSITION:

Support

National Stewardship Action Council

Republic Services – Western Region

Opposition

American Institute for Packaging and Environment

Consumer Brands Association

Flexible Packaging Association

Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /