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Industry Trade Groups Team to Form California Producer Responsibility Organization

Three of the industry’s foremost trade associations have joined forces to establish a Producer Responsibility Organization (PRO) to facilitate the diversion of apparel and textile waste from California’s landfills.

Under the Responsible Textile Recovery Act (SB 707), California “producers”—brands, retailers, manufacturers and merchants of fashion and other covered textile goods—are responsible for joining and funding a PRO. Signed into law last fall, the rule requires that the PRO, chosen by the state’s industry, manage the collection, repair, reuse and recycling of materials stipulated by the Extended Producer Responsibility (EPR) law.

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The California Retailers Association (CRA), the American Apparel and Footwear Association (AAFA) and the National Retail Federation (NRF) have jointly signed a Memorandum of Understanding (MoU) establishing their desire to form the PRO, which will craft and deploy the strategy for collecting trashed textile products and transporting them to sortation centers where they’ll be routed to the appropriate channels.

Following a Jan. 1, 2026 application deadline, the California Department of Resources Recycling and Recovery must approve a PRO by March 1, 2026.

The AAFA, CRA and NRF collectively represent thousands of companies based in—or doing business in—California, and the MOU sets forth their intent to establish an independent, producer-led PRO that will ensure their compliance with SB 707. It also underscores the potential PRO’s intent to collaborate with the rest of the textile supply chain, which includes upstream and downstream partners, from brands and retailers to manufacturers, collectors, sorters, recyclers and others engaged in dealing with textile waste.

“California’s groundbreaking SB 707 positions our state as a national leader in responsible textile management,” said Rachel Michelin, president of the CRA.

“The California Retailers Association is proud to set the standard for innovation and collaboration in environmental sustainability. We are dedicated to guiding the implementation of this transformative law and to establishing a PRO that unites and empowers the wide array of producers selling textiles in California,” she added.

Michelin said the groups are collectively committed to creating positive impacts for the state’s communities, environment and retail landscape.

“This partnership signals our industry’s commitment to collaborate in support of a circular transition,” said AAFA CEO and president Steve Lamar. “By bringing together diverse stakeholders from across our industry supply chain, we are launching an inclusive organization that is right for the California market and regulatory environment, establishing California as the standard for similar approaches nationwide.”

Now, the associations have started the process of establishing an independent 501(c)(3) PRO that meets the requirements of the law—a task that NRF chief administrative officer and legal counsel Stephanie Martz said they’re well-equipped to manage.

“Our associations have a shared commitment to ensuring the success of SB 707. Collectively, our members bring significant experience in PRO-building, EPR compliance and implementation to this effort,” she said. “We look forward to working together to establish an organization that supports the entire producer community to meet the immediate needs in California and potential future needs if other states adopt similar approaches.”

Expected to be operational early next year, the PRO is now being prepared for the application process. According to the partners, the goal is to register producers for the PRO by July 1 of next year. An initial statewide needs assessment will be conducted in order to map out the necessary steps and investment required to meet SB 707’s requirements, as well as to budget for the plan. According to the trade groups, the PRO plans to reach out to producers as early as it can to “lay the groundwork for implementation.”