California has been working to implement EPR requirements since 2022, with the State’s enactment of SB 54, California's Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54). Hailed as a landmark law, SB 54 requires packaging and food ware producers to reduce plastic waste, increase recyclability and compostability, and finance the collection and processing of their products. The law also required CalRecycle, the State's waste management agency, to adopt implementing regulations by March 8, 2025, following a public consultation process. CalRecycle issued a first draft of implementing regulations in March 2024 and received extensive public comment. The proposed regulations were also discussed in several public hearings. CalRecycle substantially revised the draft regulations in response to public comment. The agency issued new proposed regulations, with public feedback accepted until December 2024, with plans to finalize the regulations by the statutory deadline of March 8, 2025.
During the initial phases of public consultation, CalRecycle received more than 5,000 comments and letters. While some stakeholders applauded it as a necessary first step to reducing plastic pollution and increasing incentives for businesses, others raised concerns about costs to businesses and consumers, reporting structures, alignment with other regulatory requirements (e.g., The Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65)), and feasibility for certain products, such as food products. The complexity of the regulatory definitions, requirements, and fee determination makes it difficult for many businesses to determine their EPR obligations.
In part, a response to cost and complexity concerns, instead of finalizing the regulations, Governor Gavin Newsom directed CalRecycle to restart the regulatory process on March 10, 2025. The State’s Advisory Board discussed the directive and CalRecycle’s next steps at a public meeting on March 21, 2024.
CalRecycle will be issuing new proposed regulations to implement SB 54
On March 21, 2025, California’s SB 54 Advisory Board held a virtual public meeting to discuss Governor Newsom’s direction on SB 54 implementing regulations, the next steps for CalRecycle, and hear feedback from interested stakeholders. During the meeting, the Advisory Board noted that Governor Newsom raised concerns over CalRecycle’s proposed regulations after a State analysis showed the law would cost the State approximately $36 billion to implement, resulting in an extra $300 annually in expenses for each Californian household. While the State analysis also noted that these costs would likely be mitigated by estimated increases in personal income, Governor Newsom’s office wanted to ensure SB 54 regulations appropriately balanced environmental goals against rising costs for California families.
For the next steps, CalRecycle will be revisiting and reissuing proposed SB 54 regulations with the following goals in mind:
- Ensuring California’s EPR Program can be implemented in an affordable and effective manner.
- Balancing EPR Program requirements and plastic pollution reduction goals against potential impacts to California consumers and small businesses.
- Clarifying EPR Program requirements to ensure businesses can fully understand the requirements and readily comply with them.
Stakeholders attending the Advisory Board meeting stated mixed opinions over the delay in California’s finalization of EPR requirements, with many noting that the delay will result in significant compliance challenges. Some stakeholders, however, felt that the delay would be beneficial in helping craft regulations that work for both consumers and businesses and encourage innovative recycling technologies. Others also felt that the delay provides a beneficial opportunity for CalRecycle to ensure full consideration of feedback on proposed EPR requirements. Several stakeholders, for example, noted that guidance is needed from CalRecycle on how businesses should comply with both SB 54 and other California laws, such as Prop 65 and California’s Truth in Labeling Laws, which appear to conflict with the current version of EPR regulations.
No changes to SB 54 statutory deadlines or goals
While changes to SB 54 regulations will be further defined in rulemaking activities and are uncertain at this time, the statutory deadlines and targets in SB 54, which include formation of a producer responsibility organization (PRO), establishment of a covered materials list, and goal recycling rates, remain unchanged unless California’s legislature intervenes. During the Advisory Board meeting, CalRecycle specifically noted that the extension does not alter statutory requirements.
As a result, producers of packaging and food ware introduced to California have ongoing compliance expectations, even without clear guidance or rules from the State and will still need to prepare for EPR compliance.
Previously proposed EPR plan, registration, and reporting deadlines, which were considered necessary to meet SB 54 statutory deadlines, included:
- Producer registration with Circular Action Alliance (CAA), an approved PRO for California by April 2025.
- Producer registration with CalRecycle by July 2025.
- Producers must report the first six months of 2025 packaging data by August 2025.
Changes to the SB 54 implementing regulations also will not change any established goals. The implementing regulations will, for example, continue to require that by 2032:
- 100% of single-use packaging and plastic food service ware sold in the State is recyclable or compostable.
- 65% of single-use plastic packaging and food service ware is recycled.
- 25% less single-use plastic packaging and food service ware is sold, used, and disposed of in the State.
Even though California is issuing new EPR regulations, businesses that place packaging and food service ware in the State must determine whether their products and packaging are subject to California’s EPR requirements and prepare for compliance despite significant unknowns. Producers can also assume that since California is a pioneer in environmental regulation, other states will pay close attention.
Businesses that place packaging and food service ware in the State should also actively participate in CalRecycle’s upcoming rulemaking activities and provide feedback on proposed regulations, guidance materials, PRO expectations, and covered material lists. Businesses should also provide feedback on expected costs and reporting burdens from CalRecycle’s proposed regulations, as the agency is specifically tasked with balancing costs and reporting burdens in the next iteration of proposed regulations.