California SB 54: A Comprehensive Guide for Consumer Brands

5 Key Takeaways for Consumer Companies

1. Wide Reaching Impact: SB 54 affects all single-use packaging and plastic foodware, impacting a broad range of consumer goods industries.
2. Ambitious Targets: The law mandates a 25% reduction in single-use plastic packaging by 2032 and requires 65% of plastic packaging to be recycled by the same year.
3. Producer Responsibility: Costs for collecting, processing, and recycling packaging will shift from local governments to producers through a Producer Responsibility Organization (PRO).
4. Recyclability and Compostability: All single-use packaging must be recyclable or compostable by 2032.
5. Significant Funding: Producers must contribute $5 billion over 10 years for plastic pollution mitigation and community support.

What is California SB 54?

California Senate Bill 54, also known as the Plastic Pollution Prevention and Packaging Producer Responsibility Act, is a groundbreaking law aimed at reducing plastic pollution and improving the sustainability of packaging in the state. Signed into law on June 30, 2022, SB 54 establishes a comprehensive framework for extended producer responsibility (EPR) for single-use packaging and foodware.

Who Does SB 54 Apply To?

SB 54 affects a wide range of companies in the consumer goods sector, including:

1. Food and beverage companies
2. Consumer Packaged Goods (CPG) manufacturers
3. Apparel and footwear brands
4. Homegoods companies
5. Retailers selling products with covered packaging

‍

Both California-based and out-of-state companies are affected if they sell products with covered materials in the California market.
‍

Which Products Are Affected?

SB 54 covers a broad range of packaging and single-use foodware:
‍

1. All single-use packaging, regardless of material (plastic, paper, metal, glass, etc.)
2. Plastic single-use foodware, including:
   • Cups, lids, and straws
   • Utensils and stirrers
   • Plates and bowls
   • Food containers and clamshells
   • Food wrap and wrappers

For consumer brands, this translates to a wide range of products, including but not limited to:

1. Food packaging: Snack bags, beverage bottles, other food containers
2. Beauty and personal care packaging: Shampoo bottles, cosmetic containers
3. Apparel packaging: Garment bags, shoe boxes
4. Homegoods packaging: Product wrapping, protective packaging
   ‍

Companies should carefully review their product portfolios to identify all items that fall under SB 54's scope.
‍

SB 54 Timeline: Key Dates for Compliance

• 2024: Published list of recyclable or compostable categories
• 2025:
  • Adoption of SB 54 regulations
  • CalRecycle's first biennial progress report to the Legislature
• 2026: Publish recycling rates by January 1, 2026
• 2028: 30% of single-use plastic packaging and food ware recycled
• 2030: 40% of single-use plastic packaging and food ware recycled
• 2032:
  • 65% of single-use plastic packaging and food ware recycled
  • 25% Less sold
  • 100% of packaging and single-use plastic food ware is recyclable or compostable

Detailed Requirements Under SB 54

1. Source Reduction

Producers must reduce single-use plastic packaging and foodservice packaging by at least 25% by 2032. This can be achieved through:

• Eliminating unnecessary packaging
• Shifting to reusable or refillable systems
• Transitioning to non-plastic alternatives

2. Recycling Rates

Producers must ensure that plastic-covered materials achieve the following recycling rates:

• 30% by January 1, 2028
• 40% by January 1, 2030
• 65% by January 1, 2032

3. Recyclability and Compostability

By January 1, 2032, all covered materials must be:

• Recyclable in California, or
• Eligible to be labeled as "compostable"

4. Producer Responsibility Organization (PRO)

Producers must form or join a PRO by January 1, 2024. The PRO will:

• Develop and implement a plan to meet SB 54 requirements
• Collect fees from producers to fund the system
• Reimburse local governments and service providers for costs related to collection and processing

5. Environmental Mitigation Funding

The PRO must contribute $500 million annually from 2027 to 2037 (totaling $5 billion) to the California Plastic Pollution Mitigation Fund for environmental remediation efforts.

How to Prepare for SB 54 Compliance: A Step-by-Step Guide

1. Assess product portfolio and packaging
   • Identify which of your products fall under SB 54's scope
   • Evaluate current packaging materials and designs
2. Conduct a packaging audit
   • Analyze the recyclability and compostability of your current packaging
   • Identify opportunities for source reduction and material optimization‍
3. Develop a source reduction strategy
   • ‍Set targets for eliminating unnecessary packaging
   • Explore reusable or refillable packaging options
   • Investigate non-plastic alternatives where appropriate‍
4. Improve packaging recyclability and compostability‍
   • Redesign packaging to meet recyclability criteria
   • For non-recyclable items, explore compostable alternatives‍
5. Join or engage with a Producer Responsibility Organization‍
   • Stay informed about the formation of the PRO
   • Prepare to participate in PRO activities and funding‍
6. Implement data collection and reporting systems‍
   • Set up processes to track packaging data, including weights and material types
   • Prepare for reporting requirements to the PRO and CalRecycle‍
7. Engage suppliers and partners‍
   • Communicate SB 54 requirements to your supply chain
   • Collaborate on innovative packaging solutions‍
8. Invest in consumer education‍
   • Develop clear labeling and instructions for proper disposal
   • Engage in consumer outreach about recycling and composting‍
9. ‍Monitor regulatory developments‍
   • Stay informed about CalRecycle's rulemaking process
   • Participate in stakeholder consultations when possible‍
10. Prepare for financial implications‍
    • Assess potential costs for PRO participation and packaging redesign
    • Explore opportunities for cost savings through packaging optimization

Leveraging Life Cycle Assessments and Carbon Accounting for SB 54 Compliance

While SB 54 doesn't explicitly require life cycle assessments (LCAs) or carbon accounting, these tools can significantly support compliance efforts and provide additional benefits:

1. Preparing for Future Regulations: As California and other jurisdictions move towards more comprehensive sustainability reporting, having robust LCA and carbon accounting practices in place will position companies well for future compliance.
2. Data Synergies: Many data points collected for LCAs and carbon accounting can support SB 54 compliance, particularly for tracking material usage and evaluating packaging alternatives.‍
3. Source Reduction Strategies: LCA results can inform source reduction efforts by highlighting packaging designs with lower environmental impacts.‍
4. Material Selection: Carbon footprint data can guide the selection of packaging materials with lower greenhouse gas emissions, supporting both SB 54 compliance and broader sustainability goals.‍
5. Recyclability Improvements: LCAs can help identify packaging components that hinder recyclability, informing redesign efforts to meet SB 54's recyclability requirements.‍
6. Environmental Impact Assessment: While not required by SB 54, demonstrating reduced environmental impacts through LCAs can support a company's overall sustainability narrative.‍
7. Supply Chain Engagement: The process of conducting LCAs often involves close supplier collaboration, which can facilitate the collection of data needed for SB 54 compliance.
8. ‍Holistic Decision-Making: LCA and carbon accounting data can help companies make informed decisions that balance SB 54 compliance with other environmental considerations.

‍

How Planet FWD Can Help You Prepare for SB 54

At Planet FWD, we understand the complexities of sustainable packaging and the challenges posed by regulations like SB 54. Our enterprise SaaS platform is designed to help consumer companies in food, beverage, CPG, apparel, footwear, and homegoods industries measure their environmental impact and identify opportunities for improvement.

1. Packaging Assessment: We can help you evaluate your current packaging portfolio against SB 54 requirements, identifying areas for improvement.
2. Source Reduction Planning: Our tools can help you develop and track progress on source reduction strategies, supporting your efforts to meet the 25% reduction target.
3. Recyclability and Compostability Analysis: We can help you assess the recyclability and compostability of your packaging, identifying opportunities for improvement.
4. Supply Chain Engagement: Our supplier portal and communication tools can facilitate the collection of necessary information from your supply chain partners.
5. Environment Impact Modeling: By combining SB 54 compliance data with carbon accounting, we can provide a more comprehensive view of your packaging's environmental impact.

Conclusion: Embracing SB 54 as a Catalyst for Sustainable Packaging

Preparing for SB 54 compliance may seem daunting, but it's an opportunity to strengthen your company's sustainable packaging strategy and showcase your efforts to investors, customers, and regulators. By starting early and following this guide, you'll be well-positioned for compliance and leadership in sustainable business practices.

‍

Ready to take the next step in your SB 54 compliance journey? Contact us to book a free regulatory consultation with Planet FWD today. Our experts will provide personalized guidance on how our solutions can help you meet SB 54 requirements efficiently and effectively, while also supporting your broader sustainability goals.

Book a Regulatory Consultation

‍

Download our comprehensive Regulatory Guide to learn more about SB 54 and other key sustainability regulations impacting consumer brands. Stay ahead of reporting requirements and turn compliance into a sustainable packaging competitive advantage.

Download Regulatory Guide

‍

‍

‍