Background

California’s Senate Bill 54 (SB 54), the Plastic Pollution Prevention and Packaging Producer Responsibility Act, is aimed at reducing plastic waste and promoting a circular economy. Passed in 2022, this legislation establishes ambitious goals, including a 65% reduction in the amount of single-use plastic packaging entering California’s waste stream by 2032, measured against 2020 baseline levels. The law is designed to shift the responsibility for waste management and recycling from consumers to producers.

Who is Affected

The EPR law applies to a broad range of entities, including:

Producers: Manufacturers, importers, and distributors of single-use plastic packaging. Find a list of all covered materials here.
Retailers: Those selling packaged goods under their own brand, as well as those importing packaged products into California for retail.
Producer Responsibility Organizations (PROs): Third-party entities responsible for creating and implementing compliance programs on behalf of producers. Circular Action Alliance was chosen as the PRO for California. PROs coordinate waste management efforts, ensure recycling targets are met, and report progress to state regulators."

If your brand produces or sells products in California with plastic packaging, you are likely subject to SB 54’s requirements.

Pertinent Deadlines

January 1, 2025: Producers of expanded polystyrene foodservice items must demonstrate 25% recycling rate to CalRecycle

July 1, 2025: Producers are required to register with the California Department of Resources Recycling and Recovery

January 1, 2026: Producers must begin annual reporting of packaging materials and recycling efforts. The PRO will submit a comprehensive plan to CalRecycle detailing how it will achieve the recycling and reduction targets set forth in SB 54.

January 1, 2032: Full compliance required, including the 65% recycling target and design standards.

The Impact on Brands

Supply Chain Adjustments: Switching to compliant materials, or those with lower fees.
Increased Costs: Contributions to PROs and potential redesign of packaging. For many producers, contributions to PROs could range from $50,000 to over $500,000 annually, depending on the volume and type of packaging materials used.
Brand Perception: Consumers increasingly favor brands with sustainable practices, making compliance a potential competitive advantage.

Penalties for Non-Compliance

Fines: Monetary penalties for failing to meet recycling targets or submit required reports. Fines for non-compliance range from $10,000 to $50,000 per day, depending on the severity of the violation and the producer’s compliance history.
Legal Action: Non-compliance could expose brands to lawsuits from environmental advocacy groups, in addition to regulatory actions from California’s Department of Resources Recycling and Recovery.
Reputational Damage: Consumers may opt for brands committed to sustainability.

Key Components

Mandatory Recycling Rates: Incremental targets leading up to a 65% recycling rate by 2032.

Design Requirements: Packaging must meet specific criteria to qualify as recyclable or compostable, including the ability to be collected and processed by the majority of recycling facilities in California. Compostable packaging must meet the ASTM D6400 or D6868 standards.

Financial Contributions: Producers will contribute fees based on the weight and type of packaging material they introduce into the California market. These fees may vary depending on the environmental impact and recyclability of the material.

Extended Scope: Coverage includes not just packaging but also foodservice items such as plastic utensils, straws, stirrers, plates, to-go containers, and other single-use items.

Best Practices for Navigating the Producer Responsibility Program

Early Engagement with PROs: Participate in the design and implementation of compliance plans.
Robust Data Management: Track and report packaging materials accurately.
Lifecycle Analysis (LCA): An LCA involves evaluating the environmental impact of packaging materials from production to disposal. This process helps identify areas for improvement and ensures compliance with recyclability and compostability standards."
Stakeholder Collaboration: Work with suppliers and partners to streamline compliance efforts. Collaborate with suppliers to source compliant materials or partner with PROs to optimize recycling programs.

How Snaplinc Consulting Can Help

With numerous deadlines, reporting obligations, and potential penalties, businesses need a clear path forward. This is where partnering with a sustainability consulting firm can offer significant value. From compliance assessments to strategic planning, consultants can help businesses not only meet their regulatory obligations but also turn sustainability into a competitive advantage. Snaplinc partners with brands in:

Comprehensive Compliance Audits: We conduct detailed assessments of your current packaging materials and waste management practices to identify areas where changes are needed to comply with the act. This includes evaluating recyclability, sustainability, and the efficiency of your waste streams.
Producer Responsibility Organization (PRO) Navigation: We guide you through the process of joining a PRO, ensuring that your business understands its responsibilities and selects the most cost-effective and compliant approach.
Packaging Redesign and Innovation: Our team helps you transition to sustainable, recyclable, and compliant packaging solutions. We provide insights into material alternatives and design strategies that reduce environmental impact while meeting the act’s stringent recycling requirements.
Training and Internal Education: We offer comprehensive training programs for your team to ensure they understand the new recycling standards and can implement best practices across your organization.
Ongoing Monitoring and Reporting: As the act evolves, we provide ongoing support to keep your business up to date with any regulatory changes. We also assist in submitting reporting to demonstrate compliance and environmental performance to regulators and stakeholders.

By partnering with experts, companies can turn the challenges of the law into opportunities for operational improvements and enhanced sustainability credentials. Schedule a meeting with Snaplinc Consulting today to start building a cohesive sustainability plan. Together, we’ll ensure your brand is prepared for the road ahead.

Conclusion

California’s EPR laws represent both a challenge and an opportunity for brands. By acting proactively, your brand can achieve compliance while enhancing its sustainability credentials.