TLDR:
- California Responsible Textile Recovery Act: The Act establishes an Extended Producer Responsibility (EPR) program, requiring fashion brands to manage and finance the lifecycle of their products.
- Who is Affected: This Act will affect textile producers and retailers in California with over $1 million in annual global revenue from sales.
- Key Dates to Know: Brands are required to meet all recycling and reuse standards by 2030.
- How Resale Can Help: Branded resale supports compliance by ensuring that brands actively manage the lifecycle of their products, while driving customer retention and additional revenue.
Dive into the details:
ICYMI: California is making waves with the introduction of SB 707: The Responsible Textile Recovery Act of 2024. This groundbreaking legislation aims to revolutionize waste management in the fashion industry, addressing the staggering reality that the industry generates over 92 million tons of textile waste globally each year. As brands, retailers, policymakers, investors, and consumers transform the fashion value chain to a more circular economy, the resale market emerges as a powerful solution within this new regulatory framework.
Though the bill focuses primarily in California, it is part of a global movement toward legislation requiring robust climate action and reporting from the entire industry.
What Is the California Responsible Textile Recovery Act of 2024?
The California Responsible Textile Recovery Act SB 707 establishes a comprehensive framework for managing textile waste through an *Extended Producer Responsibility (EPR) program. The program will require textile and apparel producers to form and join a CalRecycle-approved *Producer Responsibility Organization (PRO) and mandates that they are 1) accountable for their products throughout their entire lifecycle and 2) responsible for paying for the product’s next-life solution. This shifts the costs of textile waste management from the state to companies. The bill also calls producers to emphasize reuse and repair programs for branded resale.
Key components include:
- Producer Responsibilities: Producers must submit a complete plan for the collection, transportation, repair, sorting, recycling, and the safe and proper management of apparel and textiles in the state. This includes apparel, footwear, swimwear, undergarments, and handbags, among other products.
- Reporting Requirements: To ensure compliance, regular reporting on waste management practices is required. Reporting requirements entail providing lists of covered products annually, detailed collection and recycling plans, performance standards, eco-modulated fee structures, and consumer education.
- Penalties for Non-Compliance: Failure to adhere to these regulations could result in significant financial penalties (up to $10,000-$50,000/day).
The implementation timeline for this act is swift, emphasizing the need for brands to act now. As the industry gears up for these changes, the urgency for sustainable practices has never been greater.
Which Brands Are Impacted?
- Producers: The bill requirements apply to textile producers and retailers with more than $1M in annual global revenue doing business in California.
- Online Marketplaces: The bill requirements also apply to online marketplaces, which must notify CalRecycle of the third-party sellers on their platforms covered by the bill—those that sell $1 million per year of covered goods into the state. They also are responsible for communicating obligations to their third-party sellers.
- “Covered Products”: Under the Responsible Textile Recovery Act, "covered products" include apparel and textile articles, excluding protective gear, FDA-regulated items, and military clothing.
How Can Resale Help Meet These Requirements?
To get ahead of the Responsible Textile Recovery Act by 2030, a brand should aim to launch a resale program by 2026. This timing allows you to establish a circular economy model, align with the extended producer responsibility requirements, and collect necessary data on reuse and recycling. By starting early, brands can also refine logistics, engage consumers in sustainable practices, and ensure they are fully compliant well before the stricter regulations and potential penalties take effect in 2030.
- 2024-2025: Prepare to join or form a PRO (Producer Responsibility Organization). Start exploring product lifecycle strategies.
- 2025: Establish a resale program, repair infrastructure, and align with PRO guidelines.
- 2026: Join the PRO, align your business practices, and begin collecting the necessary data for waste reduction and recycling.
- 2026-2028: Regulatory requirements are set, and PRO plans are finalized.
- 2030: Full compliance required. Ensure all products are accounted for in approved PRO plans to avoid penalties (from $10,000 to $50,000 a day) and meet all recycling and reuse standards.
What Next Steps Should You Take As A Producer?
Reaching out to CalRecycle is a great first step, as they will provide specific guidance on forming a PRO for textiles in California as they emerge from this new act passing. Currently, there are no established PROs specifically for apparel and textiles in the U.S. However, a few organizations are paving the way for textile recycling and could evolve into PROs soon, or provide insights for you:
- Textile Exchange – Promotes sustainable textile production and standards.
- Ellen MacArthur Foundation's Circular Economy Initiatives – Provides guidelines for circular fashion practices.
Many brands are already leveraging resale as a key component of their sustainability strategies. It’s an avenue that aligns itself with the Responsible Textile Recovery Act while unlocking new opportunities for customer engagement, brand loyalty, and additional revenue. By utilizing platforms like Treet, branded resale offers a proactive step towards circularity, ensuring that products are living their longest life within the brand’s ecosystem. Resale not only mitigates regulatory risk but also enhances your commitment to sustainability, ultimately driving value for both your business and your customers in the long term.
The Responsible Textile Recovery Act of 2024 presents both a challenge and an opportunity for the fashion industry. By embracing resale models like Treet, brands can significantly reduce textile waste, align with regulatory requirements, and open up a new revenue stream. In a world where consumers are increasingly adopting circular habits, adopting a resale strategy is not just about compliance—it's about leading the way toward a more sustainable future. Together, we can redefine the fashion landscape and ensure a brighter, more responsible future for the industry.
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Key Definitions:
*Producer Responsibility Organization (PRO): A policy approach that assigns producers responsibility for the end-of-life of products. This can include both financial responsibility and operational responsibility, though the amount and type may differ. Producers are required to provide funding and/or services that assist in managing covered products after the use phase.
*Extended Producer Responsibility (EPR): A strategy that places shared responsibility for end-of-life product management on the producers and all entities involved in the product chain, instead of on the general public and local governments.
Key Information:
- Governmental Agency: Department of Resources Recycling and Recovery (CalRecycle)
- Jurisdiction: California, USA
- Ref No: SB 707
- Program Start Date: January 1, 2028
- Latest Update: Governor Newsom signed SB 707 into law on September 28, 2024.
