The landscape of packaging responsibility is undergoing a major shift, and California’s Senate Bill 54 (SB 54) - officially the Plastic Pollution Prevention and Packaging Producer Responsibility Act - plays a significant role in this transformation. SB 54 establishes an Extended Producer Responsibility (EPR) program for single-use packaging and plastic single-use food service ware, thereby, shifting the responsibility for managing packaging waste from consumers and local governments to the producers who place these materials on the market.
Consequently, brand owners operating in California must have an understanding of SB 54 and its requirements, as it directly impacts their business.
On 27th May 2025, the Department of Resources Recycling and Recovery (CalRecycle) held a public workshop to consult with stakeholders on the final draft of the SB 54 regulations, following the first formal rule making process. The workshop was an opportunity for the public, the regulated community, and other interested parties to provide feedback on proposed changes compared to the earlier version. While further revisions are possible based on feedback, this final draft already provides valuable insight into what’s likely to be required.
The draft aims to implement, clarify, and make specific key elements of SB 54. Notably, it indicates that brand owners may need to report data going back to 2023. This highlights the urgency for companies to start assessing and organising relevant data now. The draft also offers clarity on essential terminology and processes, making it an important resource for planning and compliance preparation.
For the sake of this article, we will focus on explaining some of the essential terminologies:
Scope of ‘Producer’: Understanding Who Holds Responsibility
Producer: Generally, the entity manufacturing a product using covered materials and owning or licensing the associated brand or trademark for sale or distribution in California is considered the producer. Further clarification includes:
Brand Ownership as the Primary Determinant: The owner or licensee of a brand or trademark under which a product is sold in California typically assumes producer responsibility, particularly if they maintain a physical presence within the state.
Manufacturing Within California: If the manufacturing entity is located in California and holds the brand ownership or license, they are designated as the producer.
Importation and Initial Distribution: In instances where the brand owner/licensee or manufacturer is located outside of California, the responsibility may fall upon the party importing or first distributing the product within the state's borders.
Retailer and Wholesaler Obligations: Retailers or wholesalers marketing products under their own brand names are also accountable as producers for that specific "covered material."
Scope of "Covered Material": Identifying Affected Packaging
SB 54's stipulations apply to a broad spectrum of materials classified as "covered material," encompassing:
Single-Use Packaging: This includes all primary, secondary, and tertiary packaging designed for a single use cycle before being typically recycled, landfilled, or otherwise discarded after its contents are consumed or removed.
Plastic Single-Use Food Service Ware: This category includes plastic-coated paper and other paper-based products, alongside plastic items such as trays, plates, bowls, clamshell containers, lids, cups, utensils, stirrers, and straws intended for serving or consuming food.
Key responsibilities for producers under SB 54 include:
Compliance Deadline: By 1 January 2027, or within six months of becoming a producer thereafter, entities must either join an approved PRO or seek independent compliance approval from CalRecycle. Collaborative participation within a PRO is anticipated to be the prevailing approach for most large-scale producers, with the PRO assuming responsibility for developing and executing a comprehensive compliance plan on behalf of its members.
Mandatory Registration with CalRecycle: Existing producers must register within 30 days of the law coming into effect. New producers starting before 1 January 2027 must register within 30 days of beginning operations. Those who become producers on or after 1 January 2027 will need to either join a PRO or apply for independent compliance within six months.
Eco-Modulated Fee Structures: Producers, or their designated PRO, will be subject to fees that are strategically "eco-modulated." This implies that fee amounts will fluctuate based on factors directly influencing environmental impact, such as packaging recyclability, utilisation of post-consumer recycled content, and overall ecological considerations. These fees will finance program implementation, environmental remediation efforts, and reimbursements to CalRecycle.
Meeting Rigorous Source Reduction, Recycling, and Recycled Content Mandates:
Source Reduction Imperative: Producers are mandated to demonstrably reduce the volume of plastic packaging and food service ware they introduce. The legislation sets specific percentage reduction targets, measured by weight and unit count, to be achieved by 2032.
Elevated Recycling Rate Targets: All covered material sold within California must meet stringent recycling rate thresholds by specified dates. A benchmark of at least 65% recycling for all covered material must be achieved by 1 January 2032. Notably, expanded polystyrene food service ware faces earlier and distinct recycling rate targets.
Emphasis on Recyclability: Covered materials must be demonstrably recyclable or compostable, with detailed criteria for determining recyclability outlined in the forthcoming regulations.
Transition to Reusable and Refillable Systems: The legislation actively promotes a strategic shift away from single-use models towards the adoption of reusable and refillable packaging and food service ware solutions.
Comprehensive Reporting Requirements: Producers, either individually or through their PRO, will face significant reporting obligations. This includes the submission of a source reduction baseline report detailing all plastic covered material produced during the 2023 calendar year, alongside annual reports encompassing data on the quantity of covered material sold, recycled, and disposed of, among other critical metrics.
Environmental Mitigation Surcharge Implementation: Producers of plastic covered material will be subject to an annual environmental mitigation surcharge, to be collected by the PRO or CalRecycle, to address both historical and ongoing environmental consequences associated with these materials.
Based on the proposed regulations, key timelines for compliance include:
Producer Registration: Within 30 days of the official enactment of the regulations or upon becoming a producer (for entities established before 1 January 2027), or within six months for those becoming producers on or after that date.
Source Reduction Baseline Report: A detailed report outlining plastic covered material data from the 2023 calendar year is due by 1 July 2026.
The legislation outlines specific exemptions and exclusions, here are some of them:
Specific Packaging Categories: Certain packaging types are excluded, including those for select medical devices, prescription pharmaceuticals, and products regulated under the Federal Food, Drug, and Cosmetic Act where packaging is deemed essential for safety or contamination prevention. Packaging designed for goods with a lifespan exceeding five years and intended for long-term protection/storage may also be excluded under specific, defined criteria.
Reusable and Refillable Packaging Systems: Packaging and food service ware that demonstrably meet stringent definitions and criteria for reusability or refillability are not classified as "covered material." The forthcoming regulations will provide detailed specifications for these classifications.
Small Producer Exemptions: Producers with gross sales within California under $1 million in the most recent calendar year may apply for an exemption, although this remains subject to CalRecycle's review and approval, potentially with specific conditions attached.
Materials with Documented High Recycling Rates: Specific packaging or food service ware collected through established alternative programs (outside of standard kerbside collection) and consistently achieving high recycling rates (e.g., 65% for 2024-2026, 70% thereafter) may be eligible for an exemption.
For brand owners/companies with extensive product portfolios that are likely to be classified as "producers" because a substantial portion of their packaging is distributed within California, here are some proactive steps to take to ensure compliance with SB 54.
Review Your Product Portfolio: Identify all packaging materials that fall under the definition of “covered materials” in the legislation.
Determine Your Compliance Path: Decide whether to join a Producer Responsibility Organisation (PRO) - the more common route - or apply to operate as an Independent Producer.
Begin Data Collection and Reporting: Prepare for extensive reporting requirements, including retrospective data starting from 2023.
Account for New Compliance Cost: Understand and plan for fees associated with packaging material obligations under SB 54.
Update Packaging Strategy: Assess how to meet recyclability, recycled content, and source reduction targets. This may involve redesigning packaging, exploring new materials, or investing in reuse and refill models.
Monitor Regulatory Updates: Stay informed about evolving CalRecycle guidance and updates from your chosen PRO.
California’s SB 54 represents a major shift in producer responsibility, placing significant obligations on brand owners to rethink packaging strategies, implement robust data systems, and engage proactively with compliance pathways. While the final draft of the regulations offers important clarity, the rule making process is still evolving, and with it, the expectations for producers.
Did you know Recyda already covers recyclability guidelines for the US (APR) and existing EPR schemes in North American states like Canada? We also plan to support SB 54 once the regulation is implemented.
In addition, we are well-positioned to help customers prepare their packaging data to meet these evolving requirements. As further changes, clarifications, or enforcement milestones emerge, we will continue to provide timely updates, insights, and guidance to help brand owners navigate the road to compliance confidently. Stay tuned.