According to news reports, the City of South Lake Tahoe's Sustainability Commission has decided to recommend an education program rather than a plastic bag ban or fee. The plastic bag education program will be designed to decrease the use of plastic bags and polystyrene containers.
See the original story: South Lake Tahoe Considers Bag Ban
See the news report: Commission Votes for Plastic Education, Rather Than Ban
Other cities have made the same decision. See Hailey, Idaho's "Just Bag It" Campaign.