Below is the latest edition of Modern Retail’s Supply Chain Weekly newsletter, which goes out on Mondays at 10 a.m. ET, and dives into all things logistics and supply chain during a tumultuous time for the retail industry. To receive this weekly in your inbox, click here.Brands that sell in California are still scrambling to understand the state’s sweeping new packaging laws that will charge them higher fees for plastic materials.
The Plastic Pollution Prevention and Packaging Producer Responsibility Act, or Senate Bill 54, is an extended producer responsibility law meant to cut down on single-use plastic and other materials. It requires brands to pay material-specific fees for their packaging and foodware waste, with higher amounts for non-recyclable materials like single-use plastic.
The law was signed in 2022, and the corresponding plans have been a long time coming. But this summer saw progress when the Circular Action Alliance, the nonprofit contracted to implement the program, submitted its program plan in mid-June. Public comments will be accepted for consideration before August 14.
Sara Lowe, senior executive administrator at the packaging manufacturer Bay Cities Packaging and Design, said some companies are still getting up to speed on what the changes are and how to comply. While some EPR laws may be sector-specific, SB 54 applies to producers across all categories with a few exemptions. “California is not a small market for anyone, so it’s very easy to be in scope under this law,” she said. “And that is a percentage of brands’ businesses that they can’t afford to walk away from.”
