Pub. Resources Code, § 42984.14

(a) Upon approval of the PRO’s plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan. The PRO shall consider existing producer collection, repair, reuse, and recycling programs in developing the eco-modulated fee structure.

(b) The PRO shall account for the costs to ensure each covered product and covered product category meet the requirements of the chapter, including minimization of environmental and public health impacts along the entire supply chain of covered products or covered product category.