Permanent Regulations for California’s Extended Producer Responsibility Law (SB 54) Take Effect

Background on California SB 54

SB 54, signed into law in 2022, establishes an EPR program for single-use packaging and plastic food service ware, titled the Plastic Pollution Prevention and Packaging Producer Responsibility Act. The law is intended to reduce plastic pollution, promote more sustainable packaging practices, and shift the financial and operational costs of waste management from local governments and taxpayers to producers.²

The regulations’ approval follows a multi-year rulemaking process. In March 2025, Governor Newsom declined to adopt the Department of Resources Recycling and Recovery’s (CalRecycle’s) initial draft regulations, citing concerns about costs and the need to ensure fair and effective implementation. CalRecycle then initiated a new rulemaking process, which included a 45-day public comment period from August to October 2025. In January 2026, CalRecycle withdrew the proposed regulations from OAL’s review to make changes to “improve clarity,” and initiated an additional 15-day comment period on revised draft regulations from January to February 2026. CalRecycle then submitted the final regulations to the Office of Administrative Law (OAL) for review in March 2026.

Circular Action Alliance (CAA), the Producer Responsibility Organization (PRO) responsible for administering the EPR program, is expected to submit its program plan to the producer responsibility advisory board in June 2026, with full program implementation scheduled to begin in January 2027.

Upcoming Deadlines for California Producers

Because the regulations became effective on May 1, several regulatory deadlines are now in effect. Within 30 days of the effective date of the regulations, producers must take one of the following three actions. CalRecycle clarified in a bulletin that since the 30-day period ends on a Sunday, the compliance deadline extends to the next business day, June 1, 2026.³

• If participating in the PRO, register with and submit supply data to CAA for calendar year 2023.
• If complying individually, register with CalRecycle and apply to be an Independent Producer.
• If qualifying for the exemption for small producers, register with CalRecycle and apply for the Small Producer Exemption.

In addition to these regulatory deadlines, CAA has established PRO-administered (non-statutory) deadlines for registered producers. Specifically, CAA requires producers to submit 2026 Annual Supply Reports and Annual Source Reduction Reports (both using calendar year 2025 data) by May 31, 2026. Producers must also submit Individual Source Reduction Plans no later than August 1, 2026, though the precise deadline has not yet been finalized. CAA has indicated that it will announce the final deadline within 30 days of the effective date of the regulations.

Beyond registration and reporting, SB 54 establishes longer-term sustainability targets for producers and the PRO. By January 1, 2032, the PRO must achieve a 25% source reduction for plastic covered material; producers must ensure a 65% recycling rate for plastic covered material; and 100% of covered material sold in the state must be recyclable or compostable, as defined under state law. The statute also sets interim source reduction and recycling rate targets prior to the 2032 deadline, including that by January 1, 2028, all plastic covered materials meet a 30% recycling rate.

Exemptions and Exclusions

The statute and implementing regulations provide several exemptions and exclusions from the EPR requirements, including exemptions for materials that present "unique challenges" or "health and safety" concerns, and an exclusion where compliance with SB 54 presents a "direct conflict" with federal law. The final regulations address these exemptions and exclusions in greater detail.

• Scope of Relief from SB 54: In general, excluded materials fall outside the definition of "covered material" and thus are not subject to reporting or other EPR requirements. Exempt materials, by contrast, remain "covered material" and therefore are still subject to fee and reporting obligations, but are relieved from source reduction targets, recycling rate requirements, and the recyclability/compostability mandate.
• Procedural Requirements: Most exclusions are self-executing and do not require an application; however, the “direct conflict” exclusion is an exception. Under section 18980.2(a)(2) of the regulations, producers must submit notice and justification to CalRecycle demonstrating that it is “not reasonably possible” to use alternative packaging, and exclude it from reporting. It is not reasonably possible to use any such alternative if all the following are true:

i. “there is no such alternative that satisfies all applicable mandatory standards for safety and structural integrity of packaging, creates no new unavoidable legal conflict with any law, and otherwise is lawful to use in California;

ii. it is not possible to avoid all legal conflicts by eliminating or replacing the components that cause the conflict cited in the notice; and

iii. it is not possible to avoid all legal conflicts by redesigning or replacing the packaging as a whole.”

Upon receipt of the notice, CalRecycle must confirm that it contains sufficient justification; if not, CalRecycle must notify the submitter within 90 days that the notice is incomplete and requires resubmission. CalRecycle must also maintain a public online database identifying material that qualifies for the exclusion. Material is considered excluded unless and until CalRecycle rules otherwise. For exemptions, registered producers must submit supporting documentation to the PRO, which will then decide whether and how to present the exemption application to CalRecycle.

Advanced Recycling

The regulations allow certain non-mechanical recycling technologies. In particular, section 18980.4.1(d) of the regulations requires a PRO or Independent Producer to “identify in its plan any recycling technology that was not a type of mechanical recycling technology in use within the State as of January 1, 2023.” Such technology is not considered recycling unless the facility using it meets specified conditions, including that the facility “operates in a manner consistent with ISO 59014:2024” and does not produce “significant amounts of hazardous waste,” defined in part as waste posing a substantial risk to public health or the environment. Notably, the regulations provide that hazardous waste managed under a valid permit is deemed not to present such a risk.

CalRecycle Compliance Resources

In conjunction with the approval of the permanent regulations, CalRecycle published a new webpage with guidance documents and other resources to support producer compliance.⁴ CalRecycle has indicated that additional guidance documents on identifying covered materials and producers will be forthcoming. The agency also launched a new electronic portal, the Packaging Extended Producer Responsibility System (PEPRS), designed to support registration, reporting, and compliance monitoring for producers that are not participating in the PRO or that choose to self-report data to CalRecycle.

Next Steps

We continue to monitor the implementation of U.S. EPR laws. Please contact us if you have any questions.

Authored by Veronica Colas, Trenton H. Norris, and Rebecca Popkin.