In a significant move towards sustainability, the California Retailers Association, the American Apparel and Footwear Association (AAFA), and the National Retail Federation (NRF) have signed a Memorandum of Understanding (MoU) to establish an independent Producer Responsibility Organization (PRO). This initiative aims to divert textile and apparel waste from landfills by focusing on the collection, repair, reuse, and recycling of post-consumer materials. The PRO is a crucial part of California’s pioneering Extended Producer Responsibility (EPR) law for textiles, which is the first of its kind in the United States.

California’s SB 707, signed into law in 2024, mandates that textile producers and importers take responsibility for the end-of-life management of their products. To comply, they must join and fund the PRO, which will develop and implement a comprehensive plan to satisfy the law’s requirements, including the collection, transportation, repair, recycling, and safe management of covered products, as outlined in a joint press statement.

The California Department of Resources Recycling and Recovery is expected to approve a PRO by March 1, 2026, following the application deadline of January 1, 2026.

The initiative seeks to create a producer-driven PRO that will represent and ensure compliance for all apparel and textile producers under SB 707. By bringing together manufacturers, brands, retailers, collectors, sorters, recyclers, repair businesses, and other stakeholders, the PRO aims to foster collaboration across the textile value chain, driving innovation and maximizing the program’s impact.

Additionally, the PRO will be tasked with creating an effective stewardship program that meets all legal obligations while enhancing the infrastructure necessary for the collection, repair, reuse, and recycling of textiles.

“California’s groundbreaking SB 707 positions our state as a national leader in responsible textile management. 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. Our commitment is to deliver real impact for our communities, our environment, and the future of retail in California,” said Rachel Michelin, president of the California Retailers Association.

“This partnership signals our industry’s commitment to collaborate in support of a circular transition. 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,” remarked Steve Lamar, president and CEO of AAFA.

“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. 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,” stated Stephanie Martz, chief administrative officer and legal counsel for NRF.

The associations have commenced the formation of an independent 501(c)(3) PRO to comply with the requirements of SB 707 and prepare for the application process. The PRO is expected to be operational in early 2026, with an initial focus on registering producers by July 1, 2026.

Furthermore, it will conduct a statewide needs assessment to identify the necessary steps and investments required to meet the law’s mandates and inform the program’s budget and planning. The PRO will prioritize early outreach to producers and engage interested parties to lay the groundwork for effective implementation, as noted in the statement.