After California finalized SB 54 regulations on May 1, CalRecycle released multiple guidance documents on May 11, providing key answers for producers to address compliance requirements. These guidelines aim to help relevant companies clarify responsibility boundaries and operational paths.

This extended producer responsibility (EPR) and source reduction law for packaging sets ambitious goals for 2032: reducing the use of single-use plastic packaging and food service ware by 25% and achieving a 65% recycling rate for them. The law also requires that all single-use packaging and plastic food service ware be recyclable or compostable.

CalRecycle stated that more information about the various deferrals, exemptions, and exclusions permitted under the law will be announced later.

Producer Identification and Covered Material Definition

CalRecycle has designed a tiered flowchart for companies to screen whether they meet the producer definition under various scenarios. The answer may vary depending on factors such as whether the company is located in California, whether it is a manufacturer, whether it holds a trademark, and whether it is an exclusive authorized seller for all or part of California.

Regarding covered materials, the law covers single-use packaging—whether primary, secondary, or tertiary—as long as its contents are typically recycled, disposed of, or discarded after being consumed or unpacked. The law also applies to single-use plastic food service ware, including trays, plates, clamshells, cups, utensils, stirrers, wrappers, bags, and more. CalRecycle notes that these items may be made of plastic-coated paper or paperboard, paper or paperboard with plastic intentionally added during manufacturing, and multi-layer flexible materials.

CalRecycle also lists key material categories not covered by the law, including reusable or refillable packaging and food service ware, as well as packaging for medical devices, prescription drugs or certain over-the-counter drugs, infant formula, and specific nutritional supplements. The law also excludes items managed under other California programs, such as paint and beverage containers covered by the bottle bill.

Submission of Exclusion Notices for Food and Agricultural Packaging

The law does leave some room for certain food and agricultural packaging, which was a particular focus during regulatory revisions earlier this year. The final regulatory text states that certain food or agricultural packaging may be excluded if packaging or packaging components that reasonably comply with SB 54 as well as U.S. Department of Agriculture (USDA) and Food and Drug Administration (FDA) guidelines cannot be used. Exclusion reasons may include preventing microbial contamination, or maintaining packaging safety and structural integrity.

Submission of exclusion notices will be conducted through CalRecycle's newly launched Packaging Producer Responsibility System (PEPRS). The agency said in an email on Monday that PEPRS "will begin accepting electronic notice submissions in the coming weeks." CalRecycle explains in the guidance that these submissions must detail the packaging or packaging components eligible for exclusion; describe the conflicting state and federal regulations or guidelines; and explain why alternative solutions that could resolve the conflict cannot reasonably be used.

Key Upcoming Milestones

CalRecycle reiterated the June 1 deadline, by which producers must complete one of the following actions: register with the Circular Action Alliance (CAA) and submit supply data; register with CalRecycle in PEPRS and apply to become an independent producer; or register with CalRecycle and apply for a small producer exemption.

The Circular Action Alliance's initial draft plan is due to be submitted on June 15. This document will reveal details such as fees and operational structure. The plan will partially reference the results of the needs assessment study, but CAA has cautioned that due to tight preparation timelines, the extent to which the needs assessment can be incorporated into the plan may be limited.