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California packaging EPR (SB 54)

California's SB 54 is the most demanding packaging EPR law in the US. Beyond fees, it requires a 25% cut in plastic packaging, 65% plastic recycling, and fully recyclable or compostable packaging by 2032. Producers must be in an approved program to sell in the state from January 2027, or sooner if the PRO's plan is approved first.

Producer DeskLast reviewed October 2, 20265-minute readStarting up

At a glance

Status
Regulations effective May 1, 2026. Participation required to sell from January 1, 2027, or on plan approval if sooner.1,2
Law
SB 54 (2022), Public Resources Code §42040 et seq.; regulations at 14 CCR §§18980–18981.
PRO
Circular Action Alliance.
What's covered
Single-use packaging and plastic single-use food service ware.
Small-producer exemption
Under $1M gross sales in California. You must apply.
2032 requirements
100% recyclable or compostable; 65% plastic recycling; 25% plastic source reduction.
Penalties
Up to $50,000 per day per violation.

Who's covered

SB 54 covers two kinds of covered material: single-use packaging, and plastic single-use food service ware such as cups, lids, trays, cutlery and straws.3

California identifies the producer differently from other states. It looks for a company in California (subject to California's courts):3,4

  • First, a manufacturer that owns or licenses the brand.
  • Then, the brand owner, or, if the owner isn't in the state, the exclusive licensee.
  • Otherwise, whoever sells, offers for sale or distributes the product in or into California.

The regulations add detail. Only one brand counts for each product. An out-of-state brand owner can choose to become the producer by registering and consenting to California jurisdiction. A wholesaler or retailer that adds packaging is the producer of that packaging only. Parcel carriers are not producers.4 See Are you the producer? for how this compares with other states.

Exemptions and exclusions

The small producer exemption applies to producers with under $1 million in gross sales in California in the most recent year. Unlike other states, you must apply for it, and some requirements still apply.5,6

Excluded materials include packaging for medical devices, prescription drugs, infant formula and medical food; FIFRA-regulated products; hazardous-material containers; beverage containers in California's redemption (CRV) program; packaging for long-term storage of five years or more; and paint packaging.3,6

What you have to do

The regulations took effect on May 1, 2026.1 Producers then had until June 1, 2026 to join Circular Action Alliance, register to comply independently, or apply for the small producer exemption.7

  • Participate to sell. From January 1, 2027, or earlier if the PRO's plan is approved first, a producer may not sell, offer, import or distribute covered material in California unless it participates in an approved PRO plan or an approved independent program.2
  • Report. Producers report covered material by weight and by number of plastic components, plus data on source reduction, reuse and recycled content, through CAA or CalRecycle's reporting system.8,9
  • Plan for source reduction. In 2026, producers submitted individual source reduction plans to CAA, measured against a 2023 baseline.9
  • Pay. CAA billed a one-time 2026 early fee in August 2026, at flat rates of 0.3¢ to 2.5¢ per pound by material class, based on 2025 data. Full per-category fees start in 2027.10

The 2032 requirements

SB 54 sets three headline requirements for 2032:11,12

  • 100% of covered material must be recyclable or compostable.
  • 65% of covered plastic must be recycled.
  • 25% less plastic packaging than the 2023 baseline, measured by weight and by number of components, with interim steps of 10% by 2027 and 20% by 2030. A minimum share must come from eliminating plastic components or switching to reuse and refill.

The source-reduction requirement applies to producers collectively through the PRO. The practical effect is that your fees and your plan will reflect how much plastic you use, and how many plastic pieces your packaging has.

What it costs

California costs come in two parts:

  • Program fees per pound for each material category, set by CAA. CAA published illustrative 2027 base rates in May 2026, for example 11¢ per pound for clear PET bottles, 28–29¢ for LDPE film, 2¢ for corrugated and 1¢ for glass, in its low-cost case. Final rates come with its program plan.13
  • The Plastic Pollution Mitigation Fund. The PRO must pay $500 million a year from 2027 through 2036, which the state spends on environmental justice, public health and environmental restoration.14,15 CAA's illustration spreads this across producers by plastic weight and plastic component count, roughly 17¢ per pound of plastic plus a small charge per component.13

CAA estimated total 2027 invoices across all producers at between $1.26 billion and $1.87 billion.16 Expect plastic-heavy packaging to carry by far the largest cost in California.

Enforcement

CalRecycle can impose penalties of up to $50,000 per day per violation, starting 30 days after notice. Lower caps and corrective action plans are available in some cases.17 From January 1, 2027, the more direct risk is that non-participating producers cannot legally sell covered material in the state.2

What's changing

  • The program plan. CAA took public comment on its draft plan from June to August 2026 and planned to submit the final plan to CalRecycle in October 2026. Approval is expected before January 1, 2027.16
  • Litigation. Environmental groups sued CalRecycle in June 2026, challenging parts of the regulations, including how some recycling technologies and exemptions are treated.9
  • Material lists. CalRecycle updates its covered material categories list at least once a year. The next update is due January 1, 2027.18
  • Recyclability labeling. A separate law, SB 343, restricts recycling claims and symbols. A federal court preliminarily blocked its enforcement in July 2026. It's worth tracking because the same recyclability determinations feed into SB 54.

What to do now

  1. Confirm your registration. If you sell covered material into California and missed the June 1, 2026 deadline, register with CAA now. Participation is required to sell from January 1, 2027 at the latest.
  2. If you're under $1 million in California sales, apply for the exemption. It is not automatic.
  3. Count your plastic components, not just pounds. California charges and measures by both.
  4. Check your 2023 baseline and the source reduction plan you submitted. It sets the yardstick for the next six years.
  5. Budget for 2027 once the final rates are published.

Not sure where you stand?

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Sources

  1. CalRecycle, SB 54 regulations (14 CCR §§18980–18981), effective May 1, 2026. calrecycle.ca.gov
  2. Cal. Pub. Res. Code §42051 (participation required to sell). codes.findlaw.com
  3. Cal. Pub. Res. Code §42041 (definitions; producer). codes.findlaw.com
  4. 14 CCR §18980.1.1 (producer identification), final text. calrecycle.ca.gov
  5. Cal. Pub. Res. Code §42060 (small producer exemption). codes.findlaw.com
  6. CalRecycle, Exemptions and exclusions. calrecycle.ca.gov
  7. CalRecycle bulletin on SB 54 regulations taking effect (2026). govdelivery.com
  8. CalRecycle, Producer guidance. calrecycle.ca.gov
  9. Mayer Brown, “California's SB 54 EPR regulations take effect,” June 2026. mayerbrown.com
  10. EPR Atlas, California SB 54 (2026 early fee schedule). epratlas.com
  11. Cal. Pub. Res. Code §42057 (source reduction). california.public.law
  12. CalRecycle, Packaging EPR (SB 54). calrecycle.ca.gov
  13. Circular Action Alliance, California illustrative fees (May 1, 2026). PDF
  14. Cal. Pub. Res. Code §42064 (Plastic Pollution Mitigation Fund). california.public.law
  15. CalEPA, SB 54 Plastic Pollution Mitigation Fund. calepa.ca.gov
  16. Circular Action Alliance, California program plan public comment. circularactionalliance.org
  17. Cal. Pub. Res. Code §42081 (penalties). california.public.law
  18. CalRecycle, Covered material categories list. calrecycle.ca.gov

What changed

  • October 2, 2026 First published.

General information, not legal advice. This guide summarizes laws, rules and program documents as we read them on the review date above. These programs change often, and how a law applies depends on your products, contracts and facts. For a formal opinion, consult counsel. Producer Desk is not a law firm.