EPR – California

SB 54 (Allen, Chapter 75, Statutes of 2022) The Plastic Prevention and Packaging Producer Responsibility Act shifts the plastic pollution burden from consumers to producers, typically the companies that create or package their products in single-use packaging and plastic food service ware. Producers must pay $5 billion over 10 years: $500 million per year beginning in 2027.

The California Department of Resources, Recycling and Recovery (CalRecycle) oversees the program. The law requires an Advisory Board to be appointed by CalRecycle’s director to to:

• Identify barriers and solutions to creating a circular economy;
• Advise CalRecycle, producers, and producer responsibility organizations on SB 54 implementation.

The board’s 13 voting members and 3 non-voting members represent:

• Local government,
• Environmental and environmental justice organizations,
• Manufacturers, recycling and solid waste enterprises, and
• Retail and grocery associations.

Resources: 

• CalRecycle – SB 54 Program 
•  SB 54 (Allen, Chapter 75, Statutes of 2022) The Plastic Prevention and Packaging Producer Responsibility Act
• SB 54 Rulemaking Materials & Proposed Regulations
• Packaging Producer Responsibility Advisory Board
• Proposed Regulation Text. The express language that shows any proposed adoption, amendment, or deletion to the regulations.

• Program Regulations are to be promulgated by CalRecycle by Jan. 1, 2025
• Program begins on Jan. 1, 2027 by statute.

Clean Action Alliance (CAA) was selected on January 8, 2024 by CalRecycle as CA’s first PRO. They will assist plastic packaging producers meet the requirements of SB 54. CAA is hoping for clarity on dates from CalRecycle that were not set in statute. Producer Responsibility Organization.

Date to Join PRO:

• By Statute – Jan. 1, 2027. CAA is asking that CA producers register now if they think they may have to participate in order to receive guidance to support data preparation and reporting.

Date for annual registration:

• CAA has set a preliminary reporting deadline of August 2025, however, that is not in statute and they are asking CalRecycle for more clarity the date by which producers must report information to the PRO.

Resources: 

• CAA’s website: (Section 42061.5 of the Public Resources Code)
• CAA’s Applicant Package

The producer of a covered product shall be determined as follows:

Definition of producer

PRC 42041. (w) (1)“Producer” means a person who manufactures a product that uses covered material and who owns or is the licensee of the brand or trademark under which the product is used in a commercial enterprise, sold, offered for sale, or distributed in the state.
(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered material is the owner or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the product using the covered material is used in a commercial enterprise, sold, offered for sale, or distributed in the state. For purposes of this subdivision, a licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution of the product packaged in or made from the covered material.
(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered material is the person who sells, offers for sale, or distributes the product that uses the covered material in or into the state.
(4) “Producer” does not include a person who produces, harvests, and packages an agricultural commodity on the site where the agricultural commodity was grown or raised.
(5) For purposes of this chapter, the sale of covered materials shall be deemed to occur in the state if the covered materials are delivered to the purchaser in the state.

Definition of covered products

Covered Material Categories

• Material regulated by SB 54 (called “covered material”) includes single-use packaging and single-use plastic food service ware [Public Resources Code (PRC) Section 42061(e)]
• CalRecycle published a list containing categories of covered materials on July 1, 2024.
  [PRC Section 42061(a)(1)]
• Each covered material category describes a combination of:
  • Material type and
  • Form
• Covered material categories fall within one of five material classes, which are then further broken down by material type and form:
  • Glass
  • Ceramic
  • Metal
  • Paper and Fiber
  • Plastic
  • Wood and Other Organics

Resources: 

• SB 54 Covered Material Categories List
• Covered Material Categories Supplemental Material

How will the PRO determine fees to members?

• TBD – Pending Guidance from Cal Recycle

Are dates established as to when fees must be paid?

• Not at this time.

Is there a bottle deposit law exemption in the EPR law? 

• Yes

Does California currently have a bottle deposit law?

• Yes

Is wine currently included in the bottle deposit law?

• Yes, wine is included – bottles, boxes and bladders.

Resources: 

•  California Beverage Container Recycling and Litter Reduction Act – Bottle Bill resource page

Is there a small producer exemption?

• Yes

§ 18980.5.2. Exemptions for Small Producers

(a) A producer seeking an exemption pursuant to section 42060(a)(5) of the Public Resources Code shall submit an application electronically to the Department. The application shall include but not be limited to the following:

(1) Producer Information: (A) Legal entity name (a fictitious business name is not sufficient) (B) Business mailing address (C)Primary business address (physical address; must not be a post office box) (D)Business phone number (E) Business email address

(2) Proof showing the producer in the most recent calendar year, had gross sales of less than one million dollars ($1,000,000) in the state.

(3) Nature of the producer’s sales, distribution, or imports, including but not limited to storefront, internet website, or other online presence.

(4) The following information about each of the covered materials sold, offered for sale, distributed, or imported in or into the state: (A) Covered material category (B) Name and description

(C)Total quantity of covered material components and the weight of covered material components sold, offered for sale, distributed, or imported annually

(b) The Department shall review and evaluate an application. The Department may approve an application if, in the Department’s discretion, it meets the requirements of this section. If the application is approved, the exemption shall become effective on the date the application is approved and is valid for one year.

(c) To maintain an exemption, the small producer shall, at least 90 days before the expiration date, provide updated information satisfying the requirements of subdivision (a). If approved, the exemption shall be extended for one additional year with the new expiration date being a year later from the original expiration date.

(d) A producer no longer exempt pursuant to this section shall be subject to the requirements of the Act pursuant to section 18980.5.

Product Exemptions: 

• Allowed and Pending

§ 18980.2.3. Exemptions for Certain Covered Materials (a) Pursuant to section 42060(a)(3) and 42060(a)(4) of the Public Resources Code, the Department may, in its sole discretion, exempt particular covered material from the requirements of the Act and this chapter. (b) A PRO, participating producer, or Independent Producer may submit an application to the Department to request that covered material be deemed exempt pursuant to this section. An application shall only be considered if it contains all the elements prescribed in this section

Will a Needs Assessment be conducted?

• Yes

CalRecycle will identify what California needs to implement SB 54 successfully through five Needs Assessment studies to be competitively contracted out:

• Source Reduction Baseline Study – Contract Awarded
• Collection, Processing and End Markets Study
• Source Reduction and Materials Design Study
• Consumer Education and Access Study
• Current and Needed Statutory Funding Study

When will it be conducted?

• The Needs Assessment studies began in 2023 and are scheduled to be completed in early 2025. It is to be published by Jan. 1, 2026.

Resources: 

• SB 54 Statewide Needs Assessment

Are there Post Consumer Recycled Content (PCRC) requirements in law?

• No.  It is handled in CRV.

What are the dates and percentages when the PCRC reductions take effect?

Assembly Bill 793 establishes recycled content standards for plastic beverage containers subject to the California Refund Value (CRV).

The law requires a postconsumer plastic recycled content standard of:

• • 15% beginning January 1, 2022
  • 25% on January 1, 2025
  • 50% on January 1, 2030

Are there reusability requirements in the law?

• Yes, in relation to end use markets

What are the dates the reusability requirements take effect?

• TBD – PRO will conduct study to inform this.

(Proposed Text) Article 1: Definitions § 18980.1. Definitions

(34) “Reusable,” “refillable,” “reuse,” and “refill,” have the same definition as provided in section 42041(af) of the Public Resources Code. Determinations of whether packaging or food service ware satisfies the requirements of that definition shall be subject to the provisions of this paragraph.

(A) The terms “reuse” and “refill” refer to usage packaging or food service ware that is reusable or refillable pursuant to section 42041(af)(1)(A) through (af)(1)(D) and (af)(2)(A) through (af)(2)(C) of the Public Resources Code, subsequent to the initial use of the packaging or food service ware for its original purpose.

(B) To be considered reusable or refillable, packaging or food service ware must not constitute single-use packaging or food service ware pursuant to paragraph (35) and section 42041(ai) of the Public Resources Code.

(C)To be “designed for durability” as required by section 42041(af)(1)(B) or (af)(2)(B) of the Public Resources Code, the packaging or food service ware must remain usable for its original intended purpose when used multiple times.

(D)To be considered capable of being conveniently and safely reused or refilled: (i) For purposes of section 42041(af)(1)(C) of the Public Resources Code, packaging or food service ware must, at a minimum, be 10 sufficiently washable, as set forth in section 18980.1(a)(35)(C) and retain its form and function during reuse and washing by the producer, without posing environmental or public health risks, such as chemical leaching and microplastic shedding. (ii) For purposes of section 42041(af)(2)(C) of the Public Resources Code, packaging or food service ware must, at a minimum, be sufficiently washable, as set forth in section 18980.1(a)(35)(C) and retain its form and function during reuse and washing by the consumer, without posing environmental or public health risks, such as chemical leaching and microplastic shedding.

§ 18980.4.4. End Market Viability (a) To ensure viability of responsible end markets, a PRO or Independent Producer shall:

(1) Provide financial support to end markets to assist them in satisfying the standards specified in section 18980.4(a).

(2) To facilitate material diversion and assist end markets in satisfying the standards specified in section 18980.4(a), provide financial support to local jurisdictions, recycling service providers, independent supply chain entities, and other entities that provide services used for the diversion of materials.

(3) Develop new responsible end markets for covered materials and explore alternatives for covered materials that do not have a responsible end market. Alternatives include, but are not limited to, investing in refill and reuse infrastructure to facilitate the phasing out of covered materials lacking responsible end markets.

(4) If the covered material is made of a material type that does not have a responsible end market, as described in section 18980.4(b), that is also viable, a PRO or Independent Producer shall:

(A) Conduct a study, within a two-year period, that:

(i) Evaluates technology that could be used to recycle the covered material and ensure that the technology can constitute recycling, as defined in section 42041(aa) of the Public Resources Code.

(ii) Evaluates the feasibility of collecting, transporting, processing, and recycling the covered material.

(iii) Evaluates how the end market can meet the standards specified in section 18980.4(a). (iv)May also include pilot programs to test components specified in clauses (i), (ii), or (iii).

(B) If a PRO or Independent Producer believes a viable responsible end market exists for such covered material, a PRO or Independent Producer shall include in the plan or a plan amendment:

(i) Description of the end market.

(ii) Justification of how the end market meets the standards specified in section 18980.4(a).

(iii) Description of the viability of the end market. (iv)Budget and investment strategy that describes how a PRO or Independent Producer will fund the development of the end market, along with any necessary development of collection, transportation, and processing infrastructure.

(v) Timeline detailing proposed end market development.

(C)If a PRO or Independent Producer believes a viable responsible end market does not exist for such covered material, a PRO or Independent Producer shall invest in alternatives to that covered material to facilitate the phasing out of the covered material. Alternatives may include, but not be limited to, investing in refill and reuse infrastructure that reduces reliance on the covered material.

(5) When a PRO or Independent Producer decides to conduct a study pursuant to paragraph (4), a PRO or Independent Producer shall notify the Department and disclose the date on which the study was initiated.

Are there packaging reduction requirements in the law?

• Yes

The Source Reduction and Material Design Study is one of five being conducted by CalRecycle:

• Actions and investments needed to reduce waste at the source.
• Product redesign to use less material or be reusable or refillable.
• How to create accessible reuse and refill systems.

What are the dates packaging reduction requirements take effect?

• Source Reduction Baseline to be published on January 1, 2025

Are Large Producer Life Cycle Assessments required?

• We do not believe so.

The linked study below is listed on CalRecycle’s website under documents relied upon for the proposed regs:

• Attachment 3: An Analysis of Life Cycle Assessment in Packaging for Food and Beverage Applications, 2013, 8-14-2023

What are the penalties?

• To Be Defined – Proposed Regulations Below.

Article 13: Enforcement Oversight by the Department and Administrative Civil Penalties § 18980.13. Compliance Evaluation and Determination

 (a) The Department may conduct investigations in order to examine operation activities and records to determine compliance with this chapter or the Act pursuant to section 42080(a) of the Public Resources Code. The investigation may require, for example, entities subject to this chapter and the Act to produce to the Department records and information regarding compliance. The investigation may also require cooperation with onsite inspections by the Department. An authorized Department employee or agent shall be allowed to enter the premises of any entity subject to this chapter and the Act during normal working hours to conduct inspections. Methods may include, but are not limited to, the review and copying of any records required by this chapter. Notices of violation issued by the Department may identify additional records and information that the entity must produce regarding such noncompliance.

(b) For purposes of assessing administrative civil penalties pursuant to section 42081(a)(1) of the Public Resources Code, the Department shall determine the number of violations committed and the number of days on which the violations occurred as set forth in this section.

(c) Except as specifically set forth in this section, for each discrete requirement of the Act, this chapter, or a PRO plan, each distinct condition, action, or course of action constituting or resulting in a violation of the requirement shall constitute a single violation of the Act.

(d) Except as otherwise provided in this chapter, for purposes of assessing penalties, penalties shall accrue as follows: (1) For violations committed through discrete actions, such as an action prohibited under the Act, penalties shall accrue on each day on which the actions are committed following the thirtieth day after the Department issues a notice of violation for the previous violations. (2) For continuous violations based on the persistence of a particular condition or course of action, such as an ongoing failure to satisfy reporting, plan implementation, source reduction, or other obligations under the Act, the 99 violation shall be deemed to occur each day such conditions or courses of action persist after the thirtieth day after the Department issues a notice of violation.

(e) If a producer fails to maintain records or other evidence sufficient to demonstrate compliance with any requirement of the Act or fails to provide such records upon demand by the Department, penalties for the absence of or failure to provide records shall accrue.

Are any materials completely banned from use under the law?

While outside the specific source reduction mandate, SB 54 established a de facto ban on expanded polystyrene (EPS) foodware by January 1, 2025, unless producers demonstrate a high recycling rate (25%, as measured by CalRecycle):

PRC 42050(c) requires that all plastic covered material achieves a 30 percent recycling rate by 2028, a 40 percent recycling rate by 2030, and a 65 percent recycling rate by 2032. PRC 42061(b) requires CalRecycle to calculate and publish recycling rates being achieved in the state for each covered material category by January 1, 2026, and PRC 42061(f) requires updates to the achieved recycling rates at least every two years.

Additionally, PRC 42057(i) prohibits producers from selling, offering for sale, or distributing expanded polystyrene food service ware unless the producer demonstrates to the department that all expanded polystyrene meets specific recycling rates set in statute.

Summary of Recycling Rate – CalRecycle Responsibilities:

• PRC 42060(a)(8) – CalRecycle is required to develop a methodology and procedure for determining, to the extent feasible, an annual recycling rate as defined in subdivision (ab) of Section 42041.
• PRC 42061(b) – By January 1, 2026, CalRecycle shall calculate and publish the current recycling rates achieved in the state for each covered material category.
• PRC 42061(f)(1) – CalRecycle shall determine a process to update the achieved recycling rates that were published according to 42061(b). CalRecycle shall update these achieved recycling rates at least every two years.
• PRC 42062(c) – CalRecycle shall publish whether the achieved recycling rate of each covered material category complies with the rates of PRC 42050(c).
• PRC 42061(a)(2) through (a)(5) – CalRecycle shall conduct and publish a characterization study of covered material categories disposed of in California landfills. The first study, to be completed by July 1, 2025, will determine the approximate amount of covered material disposed of in landfills. CalRecycle shall update the characterization study in 2028, 2030, 2032, and at least every four years thereafter. At any time, CalRecycle may publish additional information regarding characterization of covered materials that was not available at the time of the most recent characterization study.

Summary of Recycling Rate – Producer & PRO Responsibilities

PRC 42050(c) – Requires that all plastic covered material must achieve the following recycling rates:

• Not less than 30% on and after January 1, 2028.
• Not less than 40% on and after January 1, 2030.
• Not less than 65% on and after January 1, 2032.

PRC 42057(i) – A producer shall not sell, offer for sale, distribute, or import in or into California expanded polystyrene food service ware unless the producer demonstrates to the department that the polystyrene meets the following recycling rates:

• Not less than 25% on and after January 1, 2025.
• Not less than 30% on and after January 1, 2028.
• Not less than 50% on and after January 1, 2030.
• Not less than 65% on and after January 1, 2032, and annually thereafter.

PRC 42083 – A producer may sale, sell, distribute, or import covered material in a covered material category that does not meet the recycling rates established in subdivision (c) of Section 42050 if they can demonstrate to the department that they achieved the applicable rate proportionate to their market share in the state.

PRC 42051.3(a)(3)(D)(iv) – A producer shall submit an annual report to the department that includes, among other information, current recycling rates.

PRC 42052(a) – Within a system established by the department, a producer shall submit various information, including: (1) the weight and number by covered material category of plastic items manufactured, sold, distributed, or imported in or into the state (2) the weight and number by covered material category of plastic items recycled (3) any additional information the department deems necessary to collect and report data pursuant to PRC 42060(a)