Overview
- California's SB 54 is a complicated and onerous EPR law is quickly set to force change in the single use packaging and service ware industries. Initial filing deadlines are currently set for June 1, 2026.
- Additionally, California's SB 343, if it goes into effect in October 2026, could radically change the labeling of most recyclable goods, and create California-specific requirements that contradict nationwide standards.
- Due to SB 54's complicated nature and rapid initial deadlines, and its overlaps with SB 343, this blog post provides suggested steps and considerations for compliance.
California SB 54's initial requirements are coming fast, and businesses should gather data and plan their compliance strategies. Due to the time crunch caused by the recently issued regulations, upcoming statutory deadlines, and lack of clear guidance, there is significant confusion over how to comply by the law's June 1, 2026, registration deadline. Businesses need to soon both register, and submit historical data on single-use packaging and plastic food service ware products (Covered Materials). Be aware that registering may result in a fee assessment that is due as early as Fall 2026. This blog lays out some steps businesses should consider as they align their compliance programs, make their submission, and plan ahead.
As discussed in our prior blogs, SB 54 is an extended producer responsibility (EPR) law meant to increase the recyclability rates of single-use packaging and food ware accessories in California. By 2032, industries are meant to: (1) reduce the use of covered materials by 25%; (2) ensure 65% recycling rates; and (3) ensure 100% recyclability. The program, and its evolving requirements, will be largely administered via a Producer Responsibility Organization (PRO), Circular Action Alliance (“CAA”). The CAA will assess fees and issue invoices in 2027 on all businesses introducing covered materials to the California market. The fee rates for such materials will depend in part upon their recyclability. Further, a producer subject to SB 54 must submit plans to CAA on how they will increase recyclability, and CAA in turn will submit plans to CalRecycle on how the industry is going to meet the state's goals. By June 1, 2026, producers must either join CAA, or file independently with CalRecycle, unless an exception applies.
Some similar and overlapping requirements are also soon about to be imposed by SB 343, California's incoming recycling law which substantially restricts the usage of the recycling symbol and related language. There is currently litigation pending against the state seeking to stop SB 343's requirements from taking effect on October 4, 2026. A motion seeking an order preliminarily barring enforcement of the law is currently pending before a federal court, and it is unclear at this point whether or not businesses will ultimately have to comply. Nevertheless, companies should both plan for SB 54 and SB 343 in case both laws end up being enforced.
Recommended Steps:
1. Figure out if SB 54 or SB 343 applies to you.
a. Both laws are very broad.
b. SB 54 applies to most companies in the business of making, selling, or branding single use packaging and plastic food ware used in California. Responsibility for making submissions could lie upstream or downstream from your business, though everyone in the chain of commerce may ultimately be responsible for compliance.
c. SB 343 applies to most products and packaging making recyclability claims, with limited exceptions.
d. Identify relevant deadlines and review available guidance.
2. Identify all of your Covered Materials under SB 54.
a. For every packaging type or SKU, is it single-use packaging? What materials are used in it?
b. Similarly, identify all plastic food ware types and SKUs. What materials do they use?
c. Do any exceptions apply to the products? Do your sales in California qualify you as a partially-exempt small producer?
3. Assess your products' recyclability and/or composability.
a. Compare your item's materials with CalRecylce's recyclability assessments and data under SB 343.
b. Determine whether the product is “recyclable” under SB 343, and plan labeling and/or design changes before the October 2026 deadline.
c. Determine recyclability and composability status under SB 54.
4. Collect 2023 and 2025 recycling data on your covered materials for SB 54 submission and apply.
a. For each of the covered items, identify the unit/total weight, sales/distribution numbers in California, material composition and categorization, and their sales channels.
b. Fill out the PRO application with CAA by June 1, 2026, or register independently with CalRecycle. Submit the baseline recycling data you collected.
c. Use the data you collected to predict what fees may be assessed by CAA as early as Fall 2026. The initial fees are based on California Early fee rates and a subsequent invoice is anticipated for 2027 based on fee rates that include costs for the Plastic Pollution Mitigation Fund (PPMF). These fees are anticipated to be substantially greater for plastic covered materials.
5. Long-term planning and redesigns.
a. Continue to collect, assess, and refine the data you have.
b. Prepare for and comply with reporting deadlines, and source reduction plans.
c. Work with suppliers and plan redesigns where necessary to hit the future goals and requirements of SB 54 and SB 343.
These suggested steps provide a brief overview of what businesses may need to consider and plan for as they adapt to California's numerous requirements. Again, initial requirements are coming fast, but a lot of the hard work required by these laws is long term. Due to the numerous requirements, lack of guidance, and short initial timelines, our suspicion is that CalRecycle and CAA will take a light approach to enforcement and penalties as the laws roll out. Nevertheless, there is certainly no guaranty and penalties for noncompliance are substantial. Our team at Steptoe is ready to guide companies as California's regulatory environment continues to become harsher and more complex.
Steptoe's team of attorneys and scientists is available to assist clients with compliance matters. For more information, contact Carol Brophy at cbrophy@Steptoe.com, or the Steptoe attorney servicing your account.
