The American Apparel & Footwear Association (AAFA) announced on September 18 that although the Sacramento Superior Court denied its preliminary injunction application, the association will continue to pursue its lawsuit against California's Department of Resources Recycling and Recovery (CalRecycle), demanding that the statutory requirements of SB-707 be enforced.

SB-707 is the law establishing California's textile extended producer responsibility (EPR) system. AAFA had previously invested substantial time and expertise in shaping the bill's framework, hoping to accelerate the construction of California's circular textile system in a cost-controllable, multi-stakeholder manner. In the association's view, whether this system can work hinges on whether the organization assuming the producer responsibility organization (PRO) function is compliant.

AAFA President and CEO Steve Lamar listed four legal requirements for the PRO in a statement: it must be formed and governed by producers; its board must be diverse and represent the overall scale and scope of the textile and apparel industry; it must be established as a 501(c)(3) nonprofit organization and not operate for profit; and it must have sound financial oversight and controls.

Lamar pointed out that CalRecycle instead selected a for-profit company and allowed it to operate under the 501(c)(3) name—setting its own budget and fees, with unclear industry participation and financial oversight as the program advances. He believes the current arrangement falls far short of the statutory requirements.

The court's refusal to issue a preliminary injunction means the producer responsibility program can proceed into early implementation without first meeting the conditions required by law. AAFA expressed disappointment but stressed that its goal remains unchanged and that it will continue to correct course through litigation and other means, bringing California's textile EPR program back onto the track required by law.

For the used clothing and textile recycling industry, the key point of this dispute is: who operates North America's first large-scale textile EPR system, and under what rules fees are charged and funds are allocated, will directly affect recyclers' access conditions and cost structures. The final form of California's plan may also become a template for other states to reference when legislating.

Source: AAFA Continues Challenge Against SB-707 PRO Selection Despite Injunction Denial · Originally published 2026-09-19