California packaging EPR (SB 54)

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; products regulated under the federal pesticide law (FIFRA); hazardous-material containers; beverage containers in California's bottle deposit program (California Redemption Value, or CRV); packaging for long-term storage of five years or more; and paint packaging.^3,6

The regulations also exclude packaging for over-the-counter (OTC) drugs, which the rules call “medical products”: drugs sold without a prescription, such as acne treatments, antiperspirants, anti-dandruff shampoo and fluoride toothpaste. There is one exception. A product that is also a cosmetic or soap, and counts as a drug only because it contains a sunscreen ingredient, is covered. SPF moisturizer and tinted SPF are examples.⁷

Food and agricultural packaging that federal rules require

There is a further exclusion that matters for food brands. Packaging for food and agricultural commodities can be taken out of the definition of covered material where federal food-safety or agricultural requirements conflict with SB 54 and no reasonable alternative avoids the conflict. In August 2026 CalRecycle, the state agency that oversees SB 54, published guidance on how to ask. The request is a Categorically Excluded Materials Notice, filed through PEPRS, CalRecycle's online portal. It must identify each packaging component, its function, the products it is used for, the conflicting federal requirement, and why no alternative exists.⁸

Three points from the guidance:

• One notice can cover a class of products, and once CalRecycle deems it complete the exclusion applies to the listed packaging without each brand filing its own.
• CalRecycle has 90 days to flag an incomplete notice, and can ask for more information after that.
• It can be reversed. Packaging later found not to qualify becomes covered material 180 days after CalRecycle gives notice.

For a brand with barrier films, seals, liners or modified-atmosphere packaging, it is worth checking whether a notice already covers your packaging, or whether your supplier or trade association is filing one. See our note on the exclusion.

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 (CAA), the producer responsibility organization (PRO); register to run their own approved program; or apply for the small producer exemption.⁹

• 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 (using less packaging), reuse and recycled content, through CAA or CalRecycle's reporting system.^10,11
• Plan for source reduction. In 2026, producers submitted individual source reduction plans to CAA, measured against a 2023 baseline.¹²
• 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.^13,14

The 2032 requirements

SB 54 sets three headline requirements for 2032:^15,16,17

• 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 components your packaging has.

CalRecycle updated the baseline report on November 2, 2026. It now uses data producers reported for 2023, in place of the modeled figures published in 2024. The update covers about 50% of participant producers, and CalRecycle says not all producers reported and not all reports were accurate. Participant producers whose data isn't included must submit new or corrected data, and CalRecycle plans its next update for November 2027. See CalRecycle's Source Reduction page and update report.^18,19

What it costs

California costs come in three parts. All three come from CAA's preliminary 2027 schedule, published October 1, 2026. CAA says the rates are non-binding until CalRecycle approves its program plan.²⁰

• Program fees per pound for each of 95 material categories, set by CAA. The table below shows the ones most food brands use. Fees are invoiced in two halves, in January and July 2027.²⁰
• 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.^21,22 CAA passes it to producers as 26¢ per pound of plastic plus 0.1¢ per plastic component, on a separate invoice in January.²⁰ CAA hasn't yet published how multi-pack items are counted as components.
• A reuse investment fee of 3¢ per pound of plastic.²⁰

The two plastic charges come on top of the program fee. For PP film, that is 27¢ + 26¢ + 3¢ = 56¢ per pound, before the component charge.²⁰

Preliminary program fees from CAA's 2027 California schedule, pages 2 to 5. Plastic items also pay the two plastic charges above. The codes are CalRecycle's covered material categories, and the descriptions follow CalRecycle's reporting guidance.^20,23

Two splits matter for food packaging. Multi-material laminates are 25¢ as pouches and envelopes and 24¢ in other forms, such as wrappers. LDPE film is 25¢ as clear film that isn't a bag and 24¢ as bags and other film.^20,23

All of the 2027 figures, including the billing mechanics, are preliminary and non-binding until CalRecycle approves CAA's plan. CAA's draft plan put its 2027 program budget at between $1.26 billion and $1.87 billion; the final plan it submitted in October puts it at about $1.1 billion.^24,25 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.²⁶ 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's program plan sets out how it will run the program and meet SB 54's requirements. CAA took public comment on its draft plan from June to August 2026.²⁷ It submitted the final plan to CalRecycle on October 13, 2026. CalRecycle is taking public comments on it through November 13, 2026, by email to packaging@calrecycle.ca.gov with the subject line “PRO Plan Comments.”¹⁷ The plan's 2027 budget is about $1.1 billion, down from $1.26 billion to $1.87 billion in the June draft. CalRecycle has 75 days to approve, reject or conditionally approve it, which runs to around December 27, 2026.^24,25 The 2027 rates match CAA's October 1 preliminary schedule, which bills the full year's Plastic Pollution Mitigation Fund charge in January. None of it is final until CalRecycle acts.^20,28
• Litigation: the states' federal suit. In June 2026, 17 states and the National Association of Wholesaler-Distributors (NAW) sued in federal court to challenge SB 54 itself on constitutional grounds (Nebraska v. Heller, E.D. Cal., No. 2:26-cv-02214). On October 23, 2026, CalRecycle's director and CAA each moved to dismiss. The motions to dismiss and the plaintiffs' request for a preliminary injunction are set for hearing on January 15, 2027, after SB 54's January 1 participation requirement takes effect.^29,30,31
• Litigation: the environmental groups' suit. Environmental groups sued CalRecycle in state court over parts of the regulations.²⁹
• Litigation: the SB 343 case. On October 8, 2026, the plaintiffs in California League of Food Producers v. Bonta (S.D. Cal.), the case that won the July injunction against SB 343 (below), asked the court to add claims against SB 54 and to add CalRecycle and CDTFA (the California Department of Tax and Fee Administration) as defendants. The claims challenge SB 54's definition of “recyclable”, its design requirements and its rule on how fees may be shown on receipts or invoices.^32,33 A hearing on that request is set for November 16, 2026, with no personal appearances and no oral argument unless the court orders it. The court also took the November 4 early neutral evaluation conference off calendar and set an attorney-only status conference for December 15.³⁴ On November 2, 2026, the Attorney General filed a notice that he does not oppose the plaintiffs' motion to amend their complaint to add First and Fourteenth Amendment challenges to parts of SB 54. He reserved the right to seek dismissal later. As of our review date, the court hadn't ruled on the motion.³⁵
• Litigation: the restaurant association's tax challenge. On October 23, 2026, the California Restaurant Association filed a petition in a Sacramento state court against Circular Action Alliance California, CalRecycle and others. It argues that SB 54's charges are taxes, and that article XI, section 11 of the California Constitution bars the Legislature from delegating the power to tax to a private body. Separation of powers is its fallback claim. It asks for a writ of mandate (a court order directing a body to act) and an order requiring CAA to rescind its invoices, refund payments and stop spending the money it has collected. We have found no report of a case number or hearing date yet.³⁶
• Where the litigation stands. As of our review date, no court has blocked SB 54, so its obligations and the January 2027 invoices stand.^30,36
• Material lists. CalRecycle updates its covered material categories list at least once a year. Check it before each reporting cycle.³⁷
• Recyclability labeling. A separate law, SB 343, restricts recycling claims and symbols. In July 2026 a federal court preliminarily barred the Attorney General from enforcing it.³⁸ 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 using CAA's preliminary rates, and check for changes when CalRecycle approves the plan.

Related guides

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, SB 54 regulation text as approved, 14 CCR §18980.2 (categorically excluded materials), effective May 1, 2026. PDF
8. CalRecycle, Guidance for Categorically Excluded Materials Notices: Food and Agricultural Packaging (Aug. 27, 2026). calrecycle.ca.gov
9. CalRecycle bulletin on SB 54 regulations taking effect (2026). govdelivery.com
10. CalRecycle, Producer guidance. calrecycle.ca.gov
11. Mayer Brown, “California's SB 54 EPR regulations take effect,” June 2026. mayerbrown.com
12. National Law Review, “California's packaging EPR deadlines are approaching”. natlawreview.com
13. EPR Atlas (Hartter Advisory), California SB 54: 2026 early fee. epratlas.com
14. Circular Action Alliance, Producer resource center. circularactionalliance.org
15. Cal. Pub. Res. Code §42050 (recyclability and recycling requirements). california.public.law
16. Cal. Pub. Res. Code §42057 (source reduction). california.public.law
17. CalRecycle, Packaging EPR (SB 54). calrecycle.ca.gov
18. CalRecycle, Update to the Source Reduction Baseline (DRRR-2026-1780), Nov. 2, 2026. calrecycle.ca.gov
19. CalRecycle, SB 54 Source Reduction Guidance. calrecycle.ca.gov
20. Circular Action Alliance, California 2027 fee schedule, preliminary (Oct. 1, 2026). circularactionalliance.org
21. Cal. Pub. Res. Code §42064 (Plastic Pollution Mitigation Fund). california.public.law
22. CalEPA, SB 54 Plastic Pollution Mitigation Fund. calepa.ca.gov
23. CalRecycle, Covered Material Categories Reporting Guidance (Sept. 8, 2025). PDF
24. Circular Action Alliance, California draft program plan (June 15, 2026). PDF
25. Resource Recycling, “CAA trims first-year SB 54 budget in final plan,” Oct. 13, 2026. resource-recycling.com
26. Cal. Pub. Res. Code §42081 (penalties). california.public.law
27. Circular Action Alliance, California program plan public comment. circularactionalliance.org
28. EPR Atlas, “CAA submits final draft California plan to CalRecycle” (updated Oct. 18, 2026). epratlas.com
29. Holland & Knight, “States, industry groups and environmental advocates challenge” SB 54 (June 2026). hklaw.com
30. State of Nebraska v. Heller, No. 2:26-cv-02214 (E.D. Cal.), docket entries 43, 60 and 62. courtlistener.com
31. EPR Atlas, Nebraska v. Heller. epratlas.com
32. Keller and Heckman, “Plaintiffs ask court to add constitutional claims against SB 54 to their SB 343 challenge,” Oct. 8, 2026. khlaw.com
33. Packaging Dive, “California League of Food Producers lawsuit expands to SB 54,” Oct. 9, 2026. packagingdive.com
34. Keller and Heckman, “SB 343: Court removes ENE conference from calendar while considering request to add SB 54 claims,” Oct. 27, 2026. khlaw.com
35. Keller and Heckman, “Attorney General Bonta does not oppose adding SB 54 claims to SB 343 challenge,” Nov. 3, 2026. khlaw.com
36. Foley & Lardner, “California Restaurant Association files new California EPR lawsuit built on an untested state constitutional tax theory,” Oct. 26, 2026. foley.com
37. CalRecycle, Covered material categories list. calrecycle.ca.gov
38. Packgine, “EPR litigation: SB 343” (summary of July 14, 2026 injunction). packgine.ai

What changed

• November 9, 2026 Litigation: the Attorney General does not oppose adding SB 54 claims in California League of Food Producers v. Bonta.
• November 2, 2026 CalRecycle updated the source reduction baseline report using producer-reported 2023 data.
• November 2, 2026 Litigation update. The request to add SB 54 claims in California League of Food Producers v. Bonta is now set for November 16, not November 9. Added the California Restaurant Association's October 23 petition. In Nebraska v. Heller, added the October 23 motions to dismiss and the January 15, 2027 hearing date, confirmed on the court docket.
• October 26, 2026 CalRecycle is taking public comments on CAA's plan through November 13, 2026.
• October 19, 2026 CAA submitted its final program plan on October 13, with a 2027 budget of about $1.1 billion; CalRecycle has 75 days to act. Added the request to bring SB 54 into the SB 343 case, with a hearing reported for November 9.
• October 12, 2026 Added the regulations' exclusion for over-the-counter drug packaging, and its exception for cosmetics that are drugs only because they contain sunscreen.
• October 11, 2026 Removed an example of how multi-pack items count as plastic components. CAA hasn't yet published how they are counted.
• October 11, 2026 Added CAA's full preliminary 2027 schedule: a table of common food-packaging rates, the reuse investment fee at 3¢, laminates as two categories (25¢ and 24¢), eco-modulation built into the rates, and the Mitigation Fund's separate January invoice. The 2026 early fee now cites CAA's producer resource center.
• October 10, 2026 Added CalRecycle's August 2026 guidance on excluding food and agricultural packaging.
• October 9, 2026 Second review: the reuse and source-reduction fee, the 2026 deadlines and source links.
• October 5, 2026 Corrected and updated after a source-by-source review, including the preliminary 2027 fee schedule published October 1, 2026.
• 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.