California’s EPR Packaging Rules officially entered a new phase after permanent regulations under SB 54 were approved by the Office of Administrative Law and filed with the Secretary of State. The move activates one of the most closely watched packaging and recycling laws in the United States.

The law, signed by California Governor Gavin Newsom in 2022, is designed to reduce plastic packaging waste and make producers financially responsible for the materials they introduce into the market.

At the same time, producer responsibility organization Circular Action Alliance (CAA) released estimated fees for obligated producers, giving businesses an early look at future compliance costs.

What California’s SB 54 Law Requires

SB 54 is considered one of the most ambitious extended producer responsibility (EPR) laws in North America.

Major Targets Companies Must Meet by 2032

Under the law, producers will be required to:

• reduce covered packaging materials by 25%
• achieve recycling rates of 65%
• ensure 100% recyclability or compostability for single-use packaging and food service ware

The law also includes phased compliance targets before 2032.

Why California Introduced the Rules

California officials say the goal is to reduce plastic pollution while shifting waste management responsibility away from taxpayers and local governments.

CalRecycle Director Zoe Heller said the rules are intended to stop excessive plastic packaging and ensure companies help fund systems for:

• collection
• recycling
• composting
• reuse infrastructure

The broader idea behind EPR is that producers should take responsibility for the full lifecycle of packaging materials, not just manufacturing and sales.

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How Companies Will Need to Comply

CalRecycle has launched a Packaging Extended Producer Responsibility System portal for:

• producer registration
• compliance tracking
• data submission
• material reporting

Companies can either:

• report directly through Circular Action Alliance
• self-report independently through CalRecycle’s system

The agency also plans to release additional guidance on identifying covered materials and determining producer obligations.

Illustrative Producer Fees Released

CAA also released estimated fee structures for producers. Final fee rates are expected later in 2026 after the draft and final program plans are completed.

Industry groups are closely watching these costs because they could affect:

• packaging design decisions
• supply-chain costs
• product pricing
• material selection strategies

Key Deadlines for California’s EPR Packaging Rules

Why the Rollout Is Being Closely Watched

The regulatory process took several years and involved multiple revisions, leadership changes, and political debates. Last year, Newsom delayed finalization of the rules and asked CalRecycle to revise them to better account for costs impacting businesses and consumers. Even after the delay, however, the law’s implementation deadlines remained unchanged.

Environmental organizations involved in the SB 54 process say implementation will ultimately determine whether the law succeeds. Heidi Sanborn, CEO of the National Stewardship Action Council, said the benefits of the policy depend heavily on how cost-effective and practical the systems become during implementation.

Meanwhile, Ocean Conservancy’s plastics policy director Anja Brandon described the process as highly iterative, noting that many operational challenges are still emerging as the program moves closer to full rollout.

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What This Means for Packaging and Recycling in the US

California’s EPR Packaging Rules could influence packaging regulations far beyond the state itself.

Because California represents one of the largest consumer markets in the world, many companies may redesign packaging nationally rather than creating separate systems for California alone.

The law is also expected to accelerate investment in:

• recyclable packaging
• compostable materials
• reuse systems
• recycling infrastructure
• packaging redesign technologies

As more governments globally adopt EPR systems, California’s rollout is likely to become a major case study for how large-scale packaging responsibility programs operate in practice.

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