SB 707: California’s Textile EPR Law Explained

Supporting Your Business Through Change

23 March 2026

Textiles of different materials which will be in scope of SB 707

California’s Responsible Textile Recovery Act of 2024Ā (SB 707)Ā introduces the first statewideĀ extended producer responsibility (EPR)Ā program forĀ textilesĀ in the U.S., requiring producers to manage the recycling and reuse of their products to address the growing textile waste problem.

The policy has now moved decisively from design to implementation. On February 27, 2026, the California Department of Resources Recycling and Recovery (CalRecycle) selected Landbell USA as the state’s Producer Responsibility Organization (PRO) to administer the program. This marks an important inflection point that transitions SB 707 from planning to build‑out.

Why EPR for textiles matters

Textile waste is a large and challenging problem for a number reasons. Textile waste,Ā coming primarily from discarded apparel, has increased byĀ 400% globally in the last 20 years. The production of new apparel requires intense resource use from raw materials including fossil fuels, water, land, and chemicals. Fast fashion, or inexpensive clothing driven by rapidly changing trends produced in large volumes, is aĀ major contributor to the textile waste problem.

The infrastructure for collecting, processing, reselling, repairing, and recycling textiles is also massively lacking in the United States in particular. According to the EPA, only about 15% of textiles were recycled in 2018.

Challenges of recycling textiles

There are numerous challenges preventing optimum management of textiles at end of life. Namely:  

  • The collection of used textiles is not convenient for many Americans because they are not typically collected curbside. Drop off or take-back bins in retail stores or recycling centers are the main avenue for textile collection and often require consumers to make an extra trip.  
  • Sorting is still largely manual. People are needed to inspect apparel for condition, fiber content, and ā€œre-sellabilityā€. Although this provides employment opportunities, this manual sortation process is slow and requires a trained eye.
  • The technology which enables true or closed-loop circularity, or textiles being recycled back into textiles, is nascent in the US. Any mixed fiber apparel – most commonly polyester and cotton – makes recycling challenging from a material and economic standpoint. Most ā€œrecyclingā€ happening in the US is actually downcycling, where apparel is shredded to be reused for insulation or rags and is unable to be re-captured and recycled again. This only extends the inevitability that the material will ultimately end up in landfill.

The State of California recently passed SB 707 (or ā€œthe billā€) which aims to channel textile producer funding to tackle the various challenges in textile recycling, including collection, infrastructure, and the development of necessary technology at scale. Moreover, the law seeks to encourage producers to create apparel designed for circularity.

California’s SB 707 aims to enhance textile recycling via the EPR approach

In essence, SB 707Ā requires apparel and textile ā€œproducersā€ placing covered products on the California market to form a producer responsibility organization (PRO) to enhance the recycling and reuse of textiles, thus introducing the nation’s first EPR framework in the industry. The EPR will legally hold producers financially responsible for end-of-life management of the products they place in a certain market.

According to the bill, a ā€œproducerā€ includes:

  • Manufacturers, or the exclusive licensee (if the manufacturer is not in the state),
  • Product importers (if the manufacturer and exclusive licensee are not in the state),
  • Product distributor/retailers (if the manufacturer, exclusive licensee, and product importer are not in the state), and
  • Wholesalers (if none of the above are in the state).

These requirements apply to any entity placing covered products on the California market, regardless of whether the company has a physical presence in the state. This includes e-commerce and direct-to-consumer sales shipped into California. It should be noted that SB 707 excludes secondhand sellers and sellers with less than one million dollars ($1,000,000) in annual aggregate global turnover.

The State will adopt regulations to implement SB 707 by July 1, 2028, with full rollout by July 1, 2030. Producers or the PRO must submit and annually update a list of brands of covered products that each producer sells, distributes, imports, or offers for sale in the state.

The department will post a list of compliant producers on its website. Non-compliance will result in civil penalties (up to $50,000 per day), which will be deposited into the Textile Stewardship Recovery Penalty Account in the State Treasury.

What’s new in 2026?

CalRecycle approved Landbell USA as the PRO for SB 707 following a competitive process that also included applications from the Circular Textile Alliance and the Textile Renewal Alliance.

Following this approval:

  • All producers of covered apparel and textile articles must join Landbell USA by July 1, 2026.
  • The PRO is now responsible for producer registration, program planning, infrastructure development, funding mechanisms, and reporting to the state.

With the PRO selection complete, the pathway to implementation is clearer:

  • PRO approval: February 27, 2026
  • Producers join PRO: by July 1, 2026
  • Initial statewide needs assessment: due March 2027
  • Implementing regulations to take effect no earlier than July 1, 2028

Landbell USA is currently the only approved Producer Responsibility Organization (PRO), and producers must participate in the approved PRO to comply with SB 707. There is no individual compliance pathway outside of the PRO.

Under SB 707, the PRO shall undertake the following obligations:

  • Recycle Plan:Ā The PRO must submit a comprehensive plan for the collection, transportation, repair, sorting, recycling, and safe management of apparel and textile articles in the state for the department’s approval. The PRO is required to review and evaluate the approved plan at least every five years. Additionally, the bill requires online marketplaces to notify the department and the PRO of any third-party sellers whose sales of apparel or textile articles exceeded $1,000,000 in the previous year. They must provide all necessary information and inform these sellers about the relevant laws governing the PRO plan.
  • Annual Report:Ā The PRO must submit an annual report to the department. All reports and records provided to the department must be submitted under penalty of perjury.
  • Fee Payment:Ā The PRO must pay a fee to the department to implement and enforce the Bill. All money received from PROs will be deposited into the Textile Stewardship Recovery Fund in the State Treasury.

The EPR trend adopted by other jurisdictions

Although SB 707 is the first EPR program in the apparel and textile industry in the country,Ā EPR is already well developed in the U.S.Ā for items like electronics, batteries, mattresses, and paint, and is being rolled out for packaging in several states.Ā 

EPR for textilesĀ was formed in France in 2008 and in the Netherlands in 2023. In 2023, the European Union proposed an update to their Waste Framework Directive which would harmonize textile EPR across the region and require fashion brands to pay fees to fund textile waste collection and treatment costs. Producer fees will be based on the environmental performance of textile products, known as eco-modulation, which is intended to incentivize preferred materials and business models. The final text is expected in theĀ legislative sessions in 2025.

How to prepare for SB 707 compliance

Although the program is still a few years from being fully implemented, regulated companies can proactively prepare for legislation by answering a few questions:

  1. Does my company fit California’sĀ definition of a producer?
  2. Do we fully understand the environmental and social impacts of our product assortment?
  3. Do we want to be actively involved in shaping the requirements of the regulation to position ourselves as a leader?

What data will producers need to track?

While detailed reporting requirements will be defined through rulemaking, producers should expect to track:

  1. Total units and/or weight of products placed on the California market
  2. Product categories (e.g., apparel, footwear, home textiles)
  3. Material composition (e.g., cotton, polyester, blended fibers)

Establishing systems to capture this data early will be critical for compliance and cost forecasting.

How will producer fees be structured?

While California has not yet finalized its fee structure, producer fees are expected to be informed by product characteristics, similar to eco-modulation approaches seen in Europe. This may include factors such as:

  1. Material composition (e.g., mono-material vs blended fibers)
  2. Recyclability and durability
  3. Use of recycled content

This creates a strong incentive for companies to evaluate product design and material choices ahead of implementation.

How Anthesis can help

Anthesis’ services are well positioned to support companies with California SB 707 compliance readiness.

We can help:

  • Baseline your products: This service supports clients in understanding the product and material data needed to prepare for SB 707 and broader textile circularity requirements. Anthesis helps collect and analyze key product information, such as material composition, fiber blends, product categories, and available sales or market placement data, while identifying gaps and developing reasonable assumptions where data is incomplete. We assess current product portfolios and material choices to help companies understand potential compliance obligations, prepare for future reporting, and establish realistic goals for improved circularity and material performance.
  • Provide reporting readiness and compliance support: As SB 707 implementation advances, Anthesis can support companies in building the internal reporting processes needed for compliance. This includes identifying likely reporting data needs, organizing product and material data, mapping products to covered categories, and developing efficient workflows for annual reporting and producer registration activities. Drawing on our experience supporting EPR reporting across other regulated product streams, we help clients create practical, repeatable systems that improve data quality, support auditability, and prepare organizations for future textile reporting requirements.
  • Develop and implement action plans: Anthesis works closely with client teams to develop comprehensive action plans addressing the specific challenges and opportunities associated with textile recycling and reuse. Anthesis provides ongoing support and guidance throughout the implementation process, ensuring that companies meet or exceed SB 707 requirements.

By leveraging Anthesis’s expertise, you can effectively navigate the complexities of SB 707 and position your business as a leader in sustainable textile practices.

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