(a) For purposes of this section, “thermoform plastic container” means a plastic container, such as a clamshell, cup, drinking cup, pod, tub, lid, box, tray, egg carton, or similar rigid, nonbottle packaging, formed from sheets of extruded resin and used to package items such as fresh produce, baked goods, nuts, deli items, and nonbottle beverages. The term does not include any of the following:

(1) A lid or seal of a different material type from plastic.

(2) Thermoform plastic containers that are medical devices, medical products that are required to be sterile, prescription medicine, and packaging used for those products.

(3) A refillable thermoform plastic container that ordinarily would be returned to the manufacturer to be refilled and resold.

(4) A plastic beverage container subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500)).

(5) A thermoform plastic container of a resin type for which the total amount of the resin type sold in California annually is either of the following:

(A) Less than 1,000,000 pounds for a resin type other than expanded polystyrene.

(B) Less than 40,000 pounds of expanded polystyrene.

(6) A thermoform plastic container that is designed to be composted and is eligible to be labeled “compostable” pursuant to Section 42357.

(b) In order to improve the quality and marketability of empty beverage containers collected for recycling in the state by curbside recycling programs, the department may, subject to the availability of funds, pay a quality incentive payment for thermoform plastic containers diverted from curbside recycling programs.

(c) The department may make a quality incentive payment pursuant to this section to any recycling center certified pursuant to this division.

(d) The department may make a quality incentive payment only for materials that are substantially free of contamination, recycled, and not disposed of after collection.

(e) The amount of the quality plastic incentive payment shall be up to one hundred eighty dollars ($180) per ton, as determined by the department.

(f) An operator of a certified recycling center receiving a quality incentive payment shall make available for inspection and review any relevant record that the department determines is necessary to verify the accuracy of data upon which the quality incentive payment is based and the operator’s or certified center’s compliance with any applicable regulation.

(g) The department may make only one quality incentive payment for each thermoform plastic container collected pursuant to this section.

(h) This section shall become operative on January 1, 2023.

(Added by Stats. 2022, Ch. 574, Sec. 21. (AB 211) Effective September 27, 2022. Operative January 1, 2023, by its own provisions.)