The first phase of California’s landmark plastic pollution law went into effect June 1, requiring companies to register and report how much packaging they sell in the state — yet both industry groups and environmental advocates say the rules fall short.
Senate Bill 54 mandates a 25% reduction in single-use plastic packaging by 2032, requires all such packaging to be recyclable or compostable, and sets a 65% actual recycling target. As of the initial deadline, just shy of 3,000 producers had registered with the state, well below the 5,700 the state estimated would be obligated to do so.
Industry groups and compliance lawyers say the rules remain opaque and expensive despite major rewrites. “It’s a convoluted law, and there are going to be legal challenges to it,” said Christopher Smith, a lawyer at Saul Ewing who advises companies on compliance.
Determining which companies qualify as “producers” has proven particularly confusing. Grocery stores wrapping sandwiches in-house may be considered producers, while those selling prepackaged sandwiches may not. Farmers packaging products on site may qualify for exemptions, but the process remains unclear.
Recycling and anti-waste advocates counter that regulators weakened the law with exemptions and carve-outs that could undermine its environmental goals. Rachel Wagoner, former CalRecycle director who now consults on compliance, said the legislation attempted to accomplish what four or five bills would normally do, creating multiple new systems simultaneously.
The stakes are significant: California estimates municipalities spend $1 billion annually cleaning up litter, with packaging waste comprising more than 50% of material sent to state landfills by volume. The law is the most ambitious of its kind in the nation, going further than EPR laws adopted by Maine, Oregon, Colorado, Minnesota, Maryland, and Washington.
Under the law, producers must contribute $500 million annually to a state plastic pollution mitigation fund starting next year — costs Wagoner described as “staggering,” with even medium-sized businesses likely paying millions or tens of millions of dollars.
