; and (B) pursuant to that participation, achieve the performance targets described in paragraph (2). (2) Performance targets The performance targets referred to in paragraph (1)(B) are the following, with respect to the covered products and beverage containers subject to the responsibility of the applicable producer: (A) All plastic covered products and beverage containers have been subject to source reduction in accordance with section 12105. (B) Effective beginning on January 1, 2033, all covered products and beverage containers are reusable, recyclable, or compostable. (C) All covered products and beverage containers achieve compliance with section 12113. (D) The following recycling rates (by category of covered product or beverage container) are achieved for each covered product and beverage container: (i) Not less than 50 percent by January 1, 2030. (ii) Not less than 65 percent by January 1, 2040. (iii) Not less than 75 percent by January 1, 2050. (b) Exemptions A producer of a covered product or beverage container, including a producer that operates as a single point of retail sale and is not supplied by, or operated as part of, a franchise, shall not be subject to this part if the producer— (1) (A) for fiscal year 2023, had an annual revenue of less than $1,000,000; and (B) for fiscal year 2024 and each fiscal year thereafter, has an annual revenue of less than the applicable amount under section 12108(c) during the preceding fiscal year, as adjusted to reflect changes for the 12-month period ending on the preceding November 30 in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor