Cities concerned about Gov. Newsom’s decision to reboot SB 54 single-use packaging regulatory process

By Melissa Sparks-Kranz, Legislative Advocate, Environmental Quality

In a rare move, Governor Newsom intervened in a state rulemaking process earlier this month. On March 7, he prevented one of his state agencies, CalRecycle, from submitting the final single-use plastic and packaging regulations to the Office of Administrative Law for final approval — and instead told the regulator to start over.

This move has raised red flags for cities and some lawmakers. Local governments, who play an essential role in implementing the landmark law, won’t have clarity in the cost recovery from manufacturers until the rulemaking is completed.

“For too long cities and their residents have had to pay the costs of disposing of plastic waste,” said Carolyn Coleman, Executive Director and CEO of Cal Cities. “SB 54 offers common sense solutions to this unsustainable situation, by shifting the burden back where it belongs to plastic producers to make products more recyclable. This bill had the support of lawmakers and the Governor when it became law back in 2022 because it is the right thing to do to reduce plastic waste. We must move forward expeditiously with the rulemaking to ensure that the full promise of this law is realized.”

The regulations were based on the 2022 landmark law, SB 54, authored by Sen. Ben Allen, long-time former chair of the Senate Environmental Quality Committee. The law requires manufacturers of single-use plastic packaging and food service materials to take responsibility for the cost and recycling of the products they create.

The finalized regulations would have created the implementation framework for SB 54 and require cities and counties to include single-use plastic materials in their collection, recycling, and composting programs. The final regulation would also require that local governments be fully reimbursed for implementation by the Producer Responsibility Organization, the entity that represents plastic and packaging producers in California.

Cal Cities provided public comments to CalRecycle during the rulemaking process, making it clear that cost recovery for local governments must be explicitly stated in the regulations.

Despite a year’s worth of opportunities for feedback, input, and collaboration, business and industry groups, including the former director of the agency, lobbied to withhold the rulemaking package without clearly specifying concerns.

The call by the Governor to restart the regulations creates significant uncertainty. The Governor indicated that affordability considerations were among his chief factors for halting the process. Many vested stakeholders have expressed concerns about this decision, citing that costs and design of recyclable and compostable products are foundational in the law and fully in the hands of producers to pay for, not to be shifted to ratepayers on their utility bills.

Cal Cities and key stakeholders are urging CalRecycle to restart the formal rulemaking and adopt regulations as quickly as possible to establish and uphold the deadlines identified in statute. Without final regulations, the path forward is uncharted territory. Cal Cities is working to ensure that local governments are protected and receive full reimbursement for the costs associated with this program.

The SB 54 Advisory Board, a legislatively formed public body with diverse representatives, serves as an important forum for all stakeholders, including cities, to contribute to the discussions related to the ongoing rulemaking processes. The next meeting will be held Friday, March 21 at 10 a.m.  

What Elected Officials and Stakeholders Are Saying About the SB 54 Regulatory Restart

Senator Ben Allen (D-Santa Monica) who authored SB 54 (2022). “This law has always been about affordability — it’s been increasingly difficult for our cities and counties to handle the endless influx of plastics into our waste stream and they have been forced to increase rates on regular folks over and over again. We’re certainly disappointed that the regulations are not going forward on time and as planned. But we’re hopeful the administration and agency can move swiftly this go around, learn from the intense stakeholder negotiations we’ve been involved with over the past few days, and come out with revised regulations that get us on track toward swift implementation of the law. When that happens, it’ll be a win for both our environment and ratepayers.”

Senator Catherine Blakespear (D-Encinitas) and Chair of the Senate Environmental Quality Committee. “The statutory timelines in SB 54 have not changed and we need to remain committed to meeting them, despite this regulatory step back. Producer responsibility for plastic packaging will bring financial relief to residents and businesses that are facing repeated recycling and waste manage rate hikes to pay for the ever increasing difficulty of managing our complex waste stream. The plastic pollution scourge continues to foul our most pristine places, including beaches, trails, mountains and lagoons, while we dither over our regulatory approach.”

California State Association of Counties Chief Executive Officer Graham Knaus. “When California lawmakers and Governor Newsom enacted this law three years ago, they promised to reduce plastic pollution, and save consumers and local governments money from the rising costs of waste management. It’s time to do just that. As the Newsom administration restarts the regulatory process, counties call on CalRecycle to ensure that local governments are not at risk of being penalized if plastic manufacturers fail to comply.”

Stop Waste Executive Director Timothy Burroughs, the chair of the SB 54 Advisory Board. “SB 54 is a long-overdue solution to the growing burden of plastic packaging waste in our communities. While rulemaking has been delayed, the law’s core purpose remains unchanged—shifting the cost of collecting, sorting, and recycling single-use plastic packaging and foodware from ratepayers to producers. Now is a critical moment for local governments to stay engaged and help drive forward implementation that builds back public trust in our recycling systems and makes producers responsible for designing materials that are easily recyclable and that reduce plastic waste.” 

Monterey Bay Aquarium, Ocean Conservancy, and Oceana jointly issued the following statement: “We are disappointed that Governor Gavin Newsom failed to implement what he calls ‘the most significant overhaul of California’s plastics and packaging recycling policy in history,’ which puts the interests of the plastics and fossil fuel industry above the wallets and welfare of Californians and the environment.

When he signed Senate Bill 54 (Allen) in June 2022, Governor Newsom touted the law for going ‘further than any other state on cutting plastics production at the source’ and said that ‘California won’t tolerate plastic waste that’s filling our waterways and making it harder to breathe. We’re holding polluters responsible and cutting plastics at the source.’ We expect the Governor to keep this commitment.”

Rural County Representatives of California issued the following statement: “The withdrawal of the regulations has created substantial uncertainty among local governments and regulated entities and will certainly frustrate the law’s implementation timeline.  The regulations helpfully established clear deadlines and expectations outlining when local agencies were required to begin integrated covered materials into their collection and recycling programs.  Governor Newsom cited costs as a factor in withdrawing the regulations; however, many stakeholders disagree with that characterization.  SB 54 was intended to shift costs for managing and recycling packaging from residents to the entities who introduce those materials into the stream of commerce.  Those manufacturers derive profit from those goods while avoiding the end-of-life management challenges they create.”

National Stewardship Action Council Executive Director Heidi Sanborn. “There has never been a bill more discussed, deliberated, or thought through with the key stakeholders than SB 54 was.  There were about 25 of us in the room, from CalChamber to NGOs and Local Governments.  A deal is a deal – if the regulations went too far then let’s fix them and move on but we should not be renegotiating a bill that had the most exceptional stakeholder process I’ve seen in my 20 years of bill negotiations.”

Resource Recovery Coalition of California Executive Director Veronica Pardo. “We are disappointed by the delay in implementing SB 54, which slows California’s progress in reducing single-use plastic waste and improving recyclability. This legislation was developed through years of stakeholder engagement to establish a more sustainable waste management system while providing businesses with much-needed regulatory clarity.

This setback stalls critical regulations designed to cut single-use plastic waste by 25% and ensure all packaging is recyclable or compostable by 2032. These rules were intended to hold producers accountable, protect the environment, and create a predictable framework for businesses. Further delays risk undermining California’s leadership in sustainability and weakening efforts to combat plastic pollution.

As California refines its approach, we remain committed to collaborating with state leaders, industry partners, and environmental advocates to develop effective, practical solutions that align with the state’s sustainability goals. Moving forward, maintaining clear guidance and a reliable regulatory framework will be essential to ensuring a smooth transition for all stakeholders.

We encourage state leaders to uphold California’s commitment to reducing plastic pollution and ensure the timely and effective implementation of SB 54. Our organization stands ready to support efforts that will make SB 54 a success and drive meaningful environmental progress.”

CALPIRG issued the following statement: “We’re very concerned by Governor Newsom’s decision to delay implementation of California’s landmark plastic reduction law. Pollution from single-use plastic packaging is now at a crisis level —  harming our environment, cluttering our communities, and threatening public health. We cannot delay tackling this problem, so we hope the governor will stand strongly against the scourge of plastic waste and see that our state meets the Plastic Pollution Producer Responsibility Act’s goals and timeline.”

“Nothing we use for a few minutes for eating or drinking should pollute our waters or threaten our health for hundreds of years. With millions of bits of plastic floating down our rivers and getting to the ocean, it’s easy for wildlife to mistake a piece of plastic for food — with life-threatening consequences. I’m concerned that any ‘redo’ of plastic pollution reduction rules may let plastic companies weaken the law. We’re counting on Gov. Newsom to protect all Californians and our environment.”