(a) (1) A PRO shall prepare the initial statewide needs assessment designed to determine the necessary steps and investment needed for covered products, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for covered products shall be completed before the completion and approval of any producer responsibility plan for covered products. The PRO may select an independent third-party contractor to complete the needs assessment. (2) A PRO shall cover the cost of developing any needs assessment and any update to a needs assessment. (3) A PRO may prepare more than one needs assessment, with each assessment specific to one or more covered products subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered products subject to this chapter. (4) A PRO shall consult with the department and local jurisdictions when preparing the needs assessment. (5) The initial needs assessment, and any updates, shall be submitted to the department by March 1, 2027. The department shall review and approve, conditionally approve, or disapprove the needs assessment as meeting the requirements of this chapter within 90 days of submission. (6) If there is more than one PRO approved by the department at the time updated needs assessments are completed, then the approved PROs may collaborate on a single needs assessment. (b) A needs assessment shall comply with all of the following: (1) Be designed to inform the program budget and PRO plan. (2) Include an evaluation of all of the following with respect to covered products and covered product categories: (A) Existing scope and scale of annual covered products diverted to landfill in the state by type of covered product, material composition, and volume and annual covered product recovery diverted to reuse, repair, or recycling in the state or from the state by type of covered product, material composition, and volume. (B) The current repair, reuse, recycling, collection, sorting, and hauling system in the state and the expanded access and additional repair, reuse, recycling, collection, sorting, disassembly, and hauling options needed to meet the requirements of this chapter. (C) Current market conditions and the need to create responsible and economically viable end markets in the state, regionally, and globally. (D) Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the stateâs goals related to repair, reuse, recycling, collection, sorting, disassembly, and hauling. (E) Consumer education needs and the methods by which the PRO can best reach consumers with educational messaging. (F) Consumer behaviors to drive repair, reuse, and recycling and to achieve the requirements of this chapter. (G) Funding needs and incentive mechanisms necessary to achieve the requirements of this chapter, including coverage of the operation of the stewardship program. (H) Fee reduction or redistribution mechanisms necessary to achieve the requirements of this chapter, in a manner that equitably distributes the costs among participating producers that reflects production and sales volumes relevant to the California market. Fee reduction or redistribution mechanisms may consider existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter. (I) Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to responsible and economically viable end markets. (J) An evaluation of the availability or lack of availability of responsible end markets for recycled covered products, the need to incentivize reused products or recycled material market development, and the associated investments and actions needed to ensure that the covered produ
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