California EPR Law: Fees, Deadlines, and Exemptions (SB 54)

Q: I sell to a distributor outside California who ships into the state. Are those my California sales?

For producer status it makes no difference, because the obligation applies when your covered material is sold or distributed in the state by any person (14 CCR 18980.5(b)). PRC 42041(w)(5) says that "for purposes of this chapter, the sale of covered materials shall be deemed to occur in the state if the covered materials are delivered to the purchaser in the state." The scope is the whole chapter, not just the producer definition, so it governs the PRC 42060 small producer threshold as well as the producer cascade. If you deliver to a distributor outside California and that distributor ships the goods in, your purchaser did not take delivery in California, but the provision does not settle whether that sale is yours in the state, because it says "if" and not "only if." Producer status does not turn on where your own sale is deemed to occur, because tier 1 asks whether the manufacturer or brand owner is in the state (14 CCR 18980.1.1(a), (c)), the obligation applies if the covered material is sold or distributed in the state by any person (14 CCR 18980.5(b)), and the seller and distributor tier at PRC 42041(w)(3) applies only where no producer exists under (w)(1) or (w)(2).

Q: What are California's producer registration options under SB 54?

California offers three pathways: (1) join the Circular Action Alliance as a Participant Producer signatory; (2) register independently with CalRecycle through PEPRS; or (3) apply for a Small Producer Exemption (less than $1 million CA gross sales). The exemption is not automatic, and it does not end registration. PRC 42060(a)(5) exempts the producer from the chapter except the PRC 42050(b) recyclable-or-compostable duty from 2032, and 14 CCR 18980.5.2(e) requires an exempted small producer to keep its registration current. An approved exemption runs two years from approval, and renewal is filed between 120 and 90 days before it expires (14 CCR 18980.5.2(b) and (c)).

Q: Does California's de minimis exemption apply automatically to small producers?

No. The less than $1 million California gross sales threshold requires a formal application through PEPRS, and CalRecycle can deny it. The exemption must be renewed, and you must receive written confirmation before excluding materials from supply reports. An approved exemption is valid for two years from the approval date, and the renewal application is filed between 120 and 90 days before expiry (14 CCR 18980.5.2(b), (c)). CAA will not file a small producer exemption on your behalf.

Q: When do California EPR fees begin?

Annual per-category fees begin in 2027 once CalRecycle approves the program plan. CAA scheduled the one-time 2026 Early Fee invoices for the week of August 17, 2026, payable within 45 days of the invoice date, and its newsletter of September 29, 2026 confirms the invoices were issued. The $500 million Plastic Pollution Mitigation Fund surcharge is collected by CDTFA: the statutory deadline for CalRecycle to send CDTFA the liable-person list is March 1, 2027, and the payment deadline is 30 days from CDTFA's assessment (PRC 42064).

Q: What is the penalty for violating California SB 54?

Up to $50,000 per day per violation ($25,000 for a small producer), the highest fixed per-day civil penalty ceiling in force in any U.S. packaging EPR state; Minnesota authorizes up to $100,000 per day for a third violation within five years after stewardship plan approval (115A.1462(c)). Violations include selling covered products without registering, failing to file annual supply reports, and non-payment of fees.

Q: What are California's SB 54 source reduction targets?

SB 54 requires the PRO, on behalf of its participant producers, to source reduce plastic covered material against a 2023 baseline by 10% by 2027, 20% by 2030, and 25% by 2032. CalRecycle's guidance and CAA's plan measure every milestone by both weight and plastic component count. Separate minimums apply: at least 2% by 2027 and 4% by 2030 through shifting to reusable or refillable packaging (PRC 42057(a)(2)(C), (D)), and at least 10% by 2032 through reuse, refill, or eliminating a plastic component (42057(a)(2)(A)). CAA's plan Table 1 groups all three milestones as reuse, refill, and elimination.

Q: What is an Individual Source Reduction Plan (ISRP) and when is it due in California?

An ISRP is a forward-looking plan each producer of plastic covered packaging files with the Circular Action Alliance through its Producer Portal, showing how it will meet SB 54's source reduction targets. It was due August 3, 2026, the effective deadline CAA set because August 1 fell on a Saturday. CalRecycle sets no ISRP deadline and neither receives nor reviews these plans.

Q: Can recycled content (PCR) count toward California's source reduction requirement?

Not as a pathway. PRC 42041(aj) excludes switching from virgin material to postconsumer recycled content from the definition of source reduction. PRC 42057(a)(2)(B)(i) lets no more than 8 percent of the plastic covered material be source reduced through an alternative compliance formula the PRO develops and CalRecycle approves, on a sliding scale of virgin to PCR plastic, and no formula has been approved. The four recognized pathways are reuse and refill, eliminating components, switching to non-plastic materials, and right-sizing or lightweighting.

The 2026 early fee and the 2027 per-CMC fees

California has two distinct fee instruments. CAA published the 2026 California Early Fee Schedule on July 20, 2026: six flat per-pound rates covering program year 2026 (Glass and Ceramics 0.3 c/lb, Metal 0.8 c/lb, Paper/Fiber 0.4 c/lb, Plastic Rigid 1.3 c/lb, Plastic Flexible 2.5 c/lb, Wood and Other Organic Materials 0.8 c/lb). CAA scheduled the Early Fee invoices for the week of August 17, 2026, calculated from 2025 supply data, with payment due within 45 days of the invoice date (CAA producer bulletin, August 2026), as one installment (CAA 2026 Producer Report Planning table); the schedule was revised August 25, 2026 with no change to any rate. That is the early fee a California producer pays for program year 2026. CAA published the ongoing per-CMC schedule that starts in 2027 in preliminary form on October 1, 2026, and the fee calculator on this site prices those 2027 rates by default, or the 2026 early fee when the rate year is set to 2026.

Penalties and the 2032 recyclability requirement

California carries the highest fixed per-day civil penalty ceiling in force in any U.S. packaging EPR state, an administrative civil penalty of up to $50,000 per day per violation under PRC 42081(a)(1), reduced to $25,000 per day for producers meeting the small-producer criteria in PRC 42060(a)(5), and requires all covered material sold in the state from January 1, 2032 to be recyclable in the state or eligible to be labeled compostable (PRC 42050(b)).

Registration and the small producer exemption

Three registration pathways exist: joining CAA, registering independently through PEPRS, or applying for a small producer exemption. PRC 42060(a)(5)(A) measures total gross sales in the state, not California sales of covered materials, so a large company with a modest packaging footprint does not qualify however little covered material it places. The exemption is also not automatic and not a full exit: it relieves the producer of the chapter's requirements except the PRC 42050(b) duty that covered material be recyclable or compostable from January 1, 2032, the producer must keep its registration current (14 CCR 18980.5.2(e)), an approved exemption lasts two years and is renewed by filing between 120 and 90 days before it expires (14 CCR 18980.5.2(b), (c)), and under PRC 42060(a)(5)(B) CalRecycle may refuse it outright where granting it would hinder a covered material category from complying (PRC 42060(a)(5); 14 CCR 18980.5.2).

Where a sale counts as a California sale

PRC 42041(w)(5) says that, for purposes of the whole chapter, a sale of covered materials is deemed to occur in the state if the covered materials are delivered to the purchaser in the state. Because that scope is chapter-wide, it reaches the small producer threshold. A producer delivering to an out-of-state distributor that then ships into California is still the producer if it is in the state under 14 CCR 18980.1.1(a). The obligation applies when the producer's covered material is sold or distributed in the state by any person (14 CCR 18980.5(b)), and the seller and distributor tier at PRC 42041(w)(3) applies only where no producer exists under (w)(1) or (w)(2).

Source reduction targets and the ISRP

The program also sets source reduction targets for plastic packaging (10% by 2027, 20% by 2030, and 25% by 2032 against a 2023 baseline), with Individual Source Reduction Plans (ISRPs), which were due to CAA by August 3, 2026.

Fee Schedule by Material

California’s 2027 rates include CAA’s two passive eco-modulation factors; the other eco-modulation values are not yet set. California 2027 amounts are CAA’s preliminary rates (October 1, 2026), non-binding until CalRecycle approves the program plan, with the 3¢ reuse and 26¢ PPMF fees per pound folded in for plastics. The 2026 column is the 2026 early fee rate for each material’s class.

Material / Packaging Type	2027 Rate / Metric Ton (preliminary)	2026 Early Fee / Metric Ton	Tier
Aluminum, cans	$22	$18	Tier 1
Clear PET (#1)	$904	$29	Tier 4
HDPE Natural (#2)	$860	$29	Tier 4
Steel	$44	$18	Tier 1
Uncoated Paper/Board	$44	$9	Tier 1
Corrugated	$66	$9	Tier 1
HDPE Pigmented (#2)	$926	$29	Tier 4
PP (#5)	$992	$29	Tier 4
Glass	$44	$7	Tier 1
LDPE Film / Mono-PE	$1,190	$55	Tier 4
PS Rigid (#6)	$904	$29	Tier 4
Expanded Polystyrene	$948	$29	Tier 4

Eco-Modulation Factors

◐ SignaledDescribed in an official source (statute, draft rule, or CAA plan) but not yet final, or specific values not yet set.

Source: CAA California Program Plan, Chapter 10 (Eco-Modulation) and Chapter 6 (Source Reduction), filed June 15 and revised June 18, 2026 (cite the revised plan); nine PRC 42053(e) factors, proposed and phased. The two passive factors are set in the preliminary 2027 schedule (CAA 2027 California Producer Fees Schedule, October 1, 2026, Passive Eco-Modulation Factors); the other values are not yet published. Draft program plan, not yet approved.

In Oregon this cycle, eco-modulation is three voluntary LCA bonuses, A, B, and C.

Fee Reductions (Bonuses)

PCR content bonus (2027): per-pound credit for post-consumer recycled content, APR-certified; the June 2026 revised plan said the rate would be announced in 2026 Source-reduction bonus (2027): tiered (Tier 1 and higher Tier 2), financed by source-reduction maluses High-recycling-rate bonus (2027): 5 percent off, applied passively to materials whose recycling rate is higher than the 2028 target, and built into the preliminary 2027 rates Renewable and compostable materials (2029+): credit for renewable plastic and certified compostable materials without toxic additives

Fee Increases (Maluses)

Not recyclable or compostable malus (2027): 5 percent added, applied passively to materials that are both non-recyclable and not compostable on CalRecycle's SB 54 list (e.g., PVC) Problematic packaging features malus (2028): active malus on features CAA will list each year, such as non-compatible labels, sleeves, valves, nozzles, coatings, or adhesives and problematic dyes, likely starting at 10 percent (producer self-attestation, audited) Hazardous materials and toxics: presence of hazardous materials, toxic heavy metals, pathogens, or additives in the packaging (PRC 42053(e))

Multiplier floor: Not set in the preliminary 2027 schedule (October 1, 2026), which applies the two passive factors at 5 percent each; the plan says incentives must not exceed a producer's total payable base fees (section 10.3), and the PCR and source-reduction bonus values are not yet published

California eco-modulation is now proposed in the CAA California Program Plan (filed June 15 and revised June 18, 2026, Chapter 10), and is phased. CAA proposes eco-modulation beginning with 2027 program fees: a passive bonus for CMCs with high recycling rates, a passive malus for CMCs not designated recyclable (such as PVC), plus a source-reduction PCR bonus (the plan said the rate would be announced in 2026 so producers can plan). Additional factors phase in for the 2028 program year (an active malus on packaging features that disrupt recycling, such as non-compatible labels, sleeves, coatings, adhesives, or problematic dyes, which CAA will list each year, with producer self-attestation) and 2029 and beyond (a malus on hazardous and toxic additives and a bonus for renewable plastic, with a decision on certified compostables without toxic additives deferred to 2029). The preliminary 2027 schedule CAA published on October 1, 2026 sets the two passive factors at 5 percent each and builds them into the 2027 rates; it does not give values for the PCR and source-reduction bonuses. This packaging-features malus is a California proposal for 2028; it is distinct from Oregon, which remains bonus-only with no malus this cycle. Separately, plastic producers face Plastic Pollution Mitigation Fund (PPMF) fees projected to raise about $5 billion over 10 years, plus a 2032 recyclability/compostability mandate. The passive factors are 5 percent each, and the plan says the 2028 features malus will likely start at 10 percent and rise up to 100 percent; no other California eco-modulation percentage is published yet.

Litigation Status

California has three active cases. (1) State of Nebraska et al. v. Heller et al., the 17-state and NAW challenge (E.D. Cal., No. 2:26-cv-02214, Judge Dena M. Coggins, filed June 22, 2026): challenges SB 54 itself under the dormant Commerce Clause and First Amendment and seeks to enjoin enforcement. A First Amended Complaint and a preliminary injunction motion were entered August 19, 2026, and the court set a hearing on that motion for January 15, 2027, after the January 1, 2027 California program start. No injunction has issued, so all SB 54 obligations remain in effect. The earlier 2:26-at-01047 was the district’s temporary pre-assignment number, and the docket is public. (2) Oceana / NRDC / Californians Against Waste v. CalRecycle (S.F. Superior Court, filed June 2, 2026): challenges the implementing regulations (effective May 1, 2026) as too lenient, alleged unauthorized carveouts, indefinite exemptions, and hazardous-waste-generating technologies counted as recycling. It attacks the regulations and does not seek to stop the program. (3) SB 343 labeling challenge (California League of Food Producers v. Bonta, filed March 17, 2026, Case 3:26-cv-01675): targets the separate "chasing arrows" labeling law, not SB 54. On July 14, 2026 the court granted a preliminary injunction (ECF 24) enjoining Attorney General Bonta "and all those in privity or acting in concert with" him from enforcing SB 343 until further order. Four provisions were held likely unconstitutionally vague and each was found SEVERABLE, but severance did not save the remainder: the court found plaintiffs likely to succeed on their claim that the law fails First Amendment intermediate scrutiny on the third and fourth Central Hudson steps both as enacted and as severed, so the 60 percent collection-and-sorting threshold survives as text and is enjoined with the rest. SB 343 is also enforceable by local district attorneys and supports private claims, and the order does not address whether those actors are bound, so treat non-AG enforcement as unresolved rather than enjoined. No security bond was required. The ruling is preliminary and the case continues in the district court. The court's August 25, 2026 order (ECF 31) set a joint discovery plan due October 19, 2026 and an early neutral evaluation with case management conference on October 28, 2026; a September 23, 2026 order on a motion to continue (ECF 33), whose text is not on the public docket mirror, moved the early neutral evaluation to November 4, 2026 according to Keller and Heckman (September 24, 2026); whether the other dates moved is unknown. SB 343 scope: the labeling restrictions attach to the date of manufacture, not the date of sale. CalRecycle states they apply to products and packaging manufactured after October 4, 2026, and that packaging manufactured before that date is not subject to them regardless of when it is sold, so stock already made is permanently outside the rule. The October date is not operative today because of the injunction, and CalRecycle's own page now says the October 4, 2026 compliance deadline "may be impacted by ongoing litigation" in CLFP v. Bonta and that the injunction "only blocks enforcement of SB 343" (read September 24, 2026). What is not affected: none of these cases pauses registration, reporting, source-reduction, or fee obligations. Sources: CLFP v. Bonta, ECF 24 (S.D. Cal., Jul 14, 2026), the preliminary injunction order; CourtListener docket 72503977; Packaging Dive, Waste Dive, Recycling Today (Jun 2026); Resource Recycling (Jun 5, 2026); National Law Review (Jun 2026).

Program Plan Status

Confirmed

Plan submitted: Yes. CAA submitted its draft five-year California Program Plan to the SB 54 Producer Responsibility Advisory Board on June 15, 2026, revised June 18, 2026.

Agency approved: Not yet. CalRecycle approval is required before the January 1, 2027 program start.

Where it stands: Public comment closed August 14, 2026. CAA published preliminary 2027 rates on October 1, 2026, and its deadline to submit the final draft plan to CalRecycle is October 13, 2026.

Next milestone: CAA's deadline to submit the final draft plan to CalRecycle is October 13, 2026, and CalRecycle must act on it within 75 calendar days of receipt (14 CCR 18980.6.1(b)(2)).

Source: Circular Action Alliance California program plan page; CalRecycle SB 54 program page. Agency program page →

Reporting Deadlines and Program Dates

Mar 7, 2025

Gov. Newsom directs CalRecycle to restart SB 54 rulemaking

Mar 9, 2026

AB 2253 (recycled content claims) referred to committee

Late May 2026

AB 2253 passed Assembly 42-19; ordered to Senate

Jul 1, 2026

AB 2253 cleared Senate Environmental Quality 4-2; re-referred to Senate Appropriations

Jul 2, 2026

AB 2253 amended: the credit-based mass balance prohibition is struck from the bill

Aug 3, 2026

AB 2253 placed on the Senate Appropriations suspense file 7-0

Aug 13, 2026

AB 2253 out of Senate Appropriations 5-2, do pass as amended; amendment expressly permits proportional attribution (ISO 22095-2:2026); applies to all products from Jan 1, 2030

Aug 28, 2026

AB 2253 passes the Senate 27-10

Aug 30, 2026

Assembly concurs in Senate amendments 42-20; to enrollment

Sep 10, 2026

AB 2253 enrolled Sep 3 and presented to the Governor; he has until Sep 30, 2026, after which an unreturned bill becomes a statute (Cal. Const. art. IV, sec. 10(b)(2))

Sep 27, 2026

Governor vetoes AB 2253 (Office of the Governor, legislative update, Sep 27, 2026)

Mar 17, 2026

SB 343 constitutional challenge filed by a coalition of trade associations (Case 3:26-cv-01675)

Jun 2, 2026

Oceana, NRDC, and Californians Against Waste sued CalRecycle over SB 54 regs (S.F. Superior Court)

Jun 3, 2026

SB 343 PI hearing held

Jul 14, 2026

Court grants PI blocking SB 343 enforcement (prelim.)

Jun 22, 2026

17-state AG coalition + NAW filed federal challenge to SB 54 (E.D. Cal.)

May 31, 2026

Three producer filings due to CAA: 2026 Baseline Producer Report (CY2023 data), Annual Supply Report (CY2025), Annual Source Reduction Report (CY2025). CAA's report-planning dates; the baseline supply data is due with the PRO application within 30 days after May 1 under 14 CCR 18980.5(b), (d), and CAA's May 2026 California guidance treats that deadline as June 1, 2026 because May 31 was a Sunday

Jun 1, 2026

Producer registration deadline (PEPRS/CAA)

Jun 15, 2026

CAA filed its draft 5-year program plan with the Producer Responsibility Advisory Board; 60-day public comment period opens (closes ~Aug 14, 2026)

Aug 3, 2026

Individual Source Reduction Plans due to CAA

Aug 14, 2026

Public comment period on the draft program plan closes

Aug 17, 2026

CAA scheduled 2026 Early Fee invoices for the week of Aug 17, calculated from 2025 supply data, payment due within 45 days of the invoice date (CAA producer bulletin, Aug 2026), as one installment (CAA 2026 Producer Report Planning table). The CAA newsletter of September 29, 2026 confirms the invoices were issued; CAA has not published the issue date

Oct 1, 2026

CAA published the preliminary 2027 California Producer Fees Schedule: a base fee for each covered material category plus, on plastic components, 3 cents per pound for reuse investment, 26 cents per pound for the PPMF, and 0.1 cent per component. The rates are non-binding until CalRecycle approves the program plan. Invoices go out 50% in January and 50% in July 2027, with the full-year PPMF portion billed in January

Oct 13, 2026

CAA program plan due to CalRecycle, for approval on or before Jan 1, 2027 (CAA newsletter, Sep 29, 2026)

Oct 16, 2026

SB 54 Advisory Board meeting, 10 a.m. to 4 p.m., CalEPA headquarters (CalRecycle advisory board page)

Oct 22, 2026

CAA Tribal listening session on its draft rural operational plan for rural, Tribal, and underserved communities (CAA newsletter, Sep 29, 2026)

Jan 1, 2027

Watch for binding 2027 California rates: CAA says its preliminary rates are non-binding until CalRecycle approves the program plan, due on or before this date

Jan 1, 2027

Formal program beginning; CalRecycle must act on the revised plan within 75 calendar days of receiving it (14 CCR 18980.6.1(b)(2))

Mar 1, 2027

CalRecycle transmits the liable-person list and surcharge amounts to CDTFA; the $500M mitigation surcharge is due 30 days from CDTFA's assessment (PRC 42064(b), (c)(1))

Jul 1, 2027

First CAA administrative fees remitted to CalRecycle

Program Notes

California has two fee instruments. The 2026 California Early Fee Schedule is published (July 20, 2026, revised August 25, 2026 with no rate change), sets six flat per-pound rates for program year 2026, and is what CAA invoices for program year 2026. The ongoing per-covered-material-category program fee begins in 2027; CAA published preliminary 2027 rates on October 1, 2026, non-binding until CalRecycle approves the program plan. The fee calculators on this site price either one, by the rate year you pick. Largest U.S. program: CAA's plan budgets $1.26 billion to $1.87 billion for 2027, including the $500M/year PRC 42064 mitigation surcharge. Companion SB 343 governs recyclability labeling (challenged in court Mar 2026). SB 54 itself was challenged June 22, 2026 by a 17-state AG coalition plus NAW (E.D. Cal.); no injunction issued, program remains in effect. $50K/day (PRC 42081(a)(1)) is the highest fixed per-day civil penalty ceiling in force in any U.S. packaging EPR state; $25K/day applies instead to small producers under PRC 42060(a)(5). Minnesota's statute authorizes a higher maximum, $100,000 per day, but only for a third violation within five years after stewardship plan approval (115A.1462(c)), and no plan is approved yet. Gov. Newsom directed CalRecycle to restart rulemaking Mar 7, 2025; program timeline remains on track.

Covered Products Scope

Single-use packaging of any material that is routinely recycled, disposed of, or discarded, plus plastic single-use food service ware (PRC 42041(e)(1)); primary, secondary, and tertiary packaging are all in scope.

Exemptions and Exclusions

The following categories may be fully or partially exempt from producer obligations in California. Verify applicability with the CAA producer portal or CalRecycle before excluding any materials from supply reports.

De minimis (small producer)Out of scopeApplication required

<$1M California gross sales. This exemption is not automatic, and producers must apply through PEPRS and receive CalRecycle confirmation. It exempts the producer from the chapter's requirements except the 2032 recyclable-or-compostable duty (PRC 42050(b)), and an exempted small producer must still keep its registration current (14 CCR 18980.5.2(e)). Approved for two years, renewal filed between 120 and 90 days before expiry.

PRC 42060(a)(5); 14 CCR 18980.5.2

Government and nonprofitNo provision

No government or nonprofit exclusion. California's producer definition carries exactly one exclusion, the on-site grower at (w)(4). A government body or charity that introduces covered material is a producer and must use the revenue-based small-producer exemption at PRC 42060(a)(5) like anyone else, which is an application rather than an automatic exit.

PRC 42041(w) read in full, (w)(1) to (w)(5)

Paper and wood-fiber millsNo provision

No mill exclusion. Only Minnesota and Maryland carve out mills, and they carve out the same two categories.

PRC 42041(w) read in full

Restaurant and single-location retailNo provision

No restaurant or single-retail exclusion in the producer definition.

PRC 42041(w) read in full

Beverage manufacturer volume testNo provision

No raised volume threshold for beverage manufacturers. Oregon is the only state of the seven with one, and the ordinary de minimis test applies here instead.

PRC 42041(w) and PRC 42060(a)(5)

Alcohol licenseeNo provision

No alcohol licensee exclusion, and no on-premises alcohol carve-out in the revenue test either. Maryland is the only state with a direct alcohol exemption; Colorado and Washington carve on-premises sales out of their revenue thresholds instead.

PRC 42041(w) read in full

B2B and transport packagingNo provision

California does not provide a general B2B exemption. SB 54 covers primary, secondary, and tertiary packaging placed on the CA market regardless of whether the sale is B2C or B2B. Producers selling exclusively to business customers are still subject to registration, reporting, and fee obligations. One adjacent relief is definitional: CAA's California guidance states that empty packaging materials not yet used by a good are not covered material, so a converter selling empties is not a producer.

PRC 42041(e)(2), read in full (A) to (H)

Hazardous or flammable (OSHA HazCom)Out of scopeAutomatic by law

This is the broadest hazardous exclusion in U.S. packaging EPR, and the only unconditional one. “Packaging used to contain hazardous or flammable products classified by the 2012 federal Occupational Safety and Health Administration Hazard Communication Standard (29 C.F.R. 1910.1200).” No material limit, no agency determination required. Washington and Minnesota attach an agency determination to their OSHA-based equivalents and neither agency has made one, so those are dormant; Maryland's Department has stated its criteria, but its exclusion covers primary packaging only and must be claimed with supporting documents, while California's applies automatically. 14 CCR 18980.2(b) extends the exclusion to primary, secondary, and tertiary packaging, but tertiary packaging used for other goods is covered material even if it also contains hazardous products.

PRC 42041(e)(2)(D)

DOT dangerous goodsOut of scopeAutomatic by law

A second, narrower hazard exclusion is separate from the OSHA one. (C) reaches only “Plastic packaging containers that are used to contain and ship products that are classified for transportation as dangerous goods or hazardous materials under Part 178 ... of Title 49 of the Code of Federal Regulations.” It covers plastic containers only, so a steel cylinder shipping dangerous goods falls under (D) rather than (C). California is the only one of the seven states with a DOT-based exclusion.

PRC 42041(e)(2)(C)

Refillable LPG and pressurized containersNo provision

No LPG or pressurized-container exclusion by name. In practice most such packaging will fall inside the OSHA exclusion at (e)(2)(D) instead, which is broader than the LPG provisions the other states use, but the route is different and the qualifying test is the OSHA classification rather than refillability.

PRC 42041(e)(2), read in full (A) to (H)

Pesticides (FIFRA)Out of scopeAutomatic by law

All packaging used to contain products regulated under FIFRA. No material limit and no condition.

PRC 42041(e)(2)(B)

Beverage containers and deposit programsOut of scopeAutomatic by law

Beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1, from PRC 14500). This is the widest alcohol exclusion of the seven states and there is NO volume ceiling: wine is a beverage at PRC 14504(a)(11), glass containers survive 14504(b)(1), and the section is operative from January 1, 2024 at (d). So a glass wine bottle of any size is out of scope in California, where the same bottle is covered in Oregon, Colorado, Minnesota, Maryland, and Washington. The closure (cork, screwcap, capsule) is a separate question that no agency has decided. 14 CCR 18980.1(a)(12) makes a detachable component a distinct item, including on packaging excluded from covered material, and 18980.2.2(b)(2)(A) denies de minimis status to any independent plastic component, which a plastic screwcap is. Pointing the other way, CalRecycle answered a Wine Institute rulemaking comment that named corks and capsules by saying they “may, in any event, be parts of beverage containers and therefore are not covered material” (SB 54 45-Day Comment Matrix, response to I-62-7). CalRecycle has not ruled on closures, so a plastic closure is best treated as covered material until it decides.

PRC 42041(e)(2)(E) via 14 CCR 18980.2(c), PRC 14504 and 14505

Medical, drug, and deviceOut of scopeAutomatic by law

Packaging for medical products and for products defined as devices or prescription drugs under the FD&C Act, animal medicines and animal biologics, infant formula, medical food, and fortified oral nutritional supplements (42041(e)(2)(A)(i) to (vi)). The rule defines the terms (14 CCR 18980.2(a)(4) to (6)): devices under 21 U.S.C. 321(h), prescription drugs, and medical products, meaning nonprescription drugs that are either not a cosmetic or soap, or not a drug solely because of a sunscreen active ingredient. A drug-cosmetic such as fluoride toothpaste is excluded; a cosmetic or soap that is a drug only because of a sunscreen ingredient stays covered. Dietary supplements are not excluded, apart from the fortified oral nutritional supplements in (vi). The exclusion is statutory and outright. CalRecycle's notice procedure under 14 CCR 18980.2(a)(2) applies to food and agricultural packaging, and 14 CCR 18980.2(a)(4) to (6) set no notice or application step for medical packaging. CORRECTED 2026-09-16: this entry previously said a conflict notice through PEPRS was required to claim it.

PRC 42041(e)(2)(A); 14 CCR 18980.2(a)(4) to (6)

AgriculturalEntity-side reliefAutomatic by law

Entity-side, in the producer definition rather than the (e)(2) material list, and much narrower than Washington's. PRC 42041(w)(4): "'Producer' does not include a person who produces, harvests, and packages an agricultural commodity on the site where the agricultural commodity was grown or raised." The test is conjunctive, and every element must be met. Produces AND harvests AND packages AND the thing packaged is the agricultural commodity AND it happens on the growing site. That shape points at field packing, a grower boxing berries at the ranch, and it is how Western Growers describes it. A processor that packages a manufactured product, or that packages anywhere other than where the crop was grown, fails it. The exclusion removes producer status and not the packaging, so under (w)(2) and (w)(3) the obligation can cascade to a brand owner or to whoever sells into the state, which makes it circular for a direct-to-consumer seller; and it is self-executing with no application and no ruling to obtain, so the producer carries the risk. This exclusion is distinct from 14 CCR 18980.2(a)(2), the food and agricultural commodity packaging exclusion, which requires a demonstrated conflict with a mandatory USDA or FDA rule and a Categorically Excluded Materials Notice. It is automatic by law where it fits.

PRC 42041(w)(4); reg 18980.2(a)(2) is a different provision

Paint stewardship containersOut of scopeAutomatic by law

Packaging associated with paint products as defined in PRC 48701. Unconditional.

PRC 42041(e)(2)(G)

Long-term storage, five yearsConditionalAgency determination

Packaging used for the long-term protection or storage of a product with a lifespan of not less than five years, “as determined by the department.” CORRECTED 2026-09-09: this entry previously stated the exclusion flat, with no mention of the department determination. The condition is in the statutory text, and 14 CCR 18980.2.2(a) implements it as a test the claimant applies and must substantiate on CalRecycle's request: the good is not consumed in ordinary use, the packaging is more commonly retained for at least five years than discarded, and the good can reasonably be expected to remain usable for at least five years. Colorado's equivalent at (13)(b)(I) carries no such condition; Maryland's at .02B(16)(n) carries the same one.

PRC 42041(e)(2)(F)

Commercial recycling routeConditionalApplication required

An item is not covered material where the producer demonstrates to CalRecycle that it is not collected through residential recycling, does not undergo separation at a commingled processing facility, is recycled at a responsible end market, and achieved a 65 percent recycling rate for three consecutive years to January 1, 2027, then 70 percent annually demonstrated every two years. If only part of the material meets the criteria, only that portion is exempt and the rest stays covered.

PRC 42041(e)(2)(H); 14 CCR 18980.2.3

Construction and contractorsNo provision

No construction exclusion, material-side or entity-side.

PRC 42041(e)(2), read in full (A) to (H)

Agency catch-allNo provision

No open-ended agency catch-all in the covered-material definition. Two separate regulatory exit routes exist instead: the de minimis weight or volume exclusion at 14 CCR 18980.2.2(b), which the PRO or an independent producer can request against six tests and which CalRecycle can also apply to components it identifies, and covered-material exemptions from the recyclability, compostability, and rate requirements at 14 CCR 18980.2.4. CalRecycle's approved-exclusions database for de minimis plastic components is not yet live.

PRC 42041(e)(2), read in full (A) to (H)

The small producer exemption and the commercial recycling route at PRC 42041(e)(2)(H) require an application to CalRecycle (14 CCR 18980.5.2(a), 18980.2.3(b)), and a long-term storage claim must be substantiated on CalRecycle's request (14 CCR 18980.2.2(a)), while the other statutory exclusions in PRC 42041(e)(2) apply by law. The small-producer exclusion is approved for two years and renewal must be filed between 120 and 90 days before it expires (14 CCR 18980.5.2(b), (c)); exempt producers must still keep their registration current. For a CAA participant, an approved material exemption does not end reporting: under CAA Reporting Policy s. 3.14 it must still submit a Producer Report giving gross covered-material totals including the exempt amounts. A small producer exempted under PRC 42060(a)(5) is relieved of the chapter's requirements except PRC 42050(b), and keeps its registration current.

Responsible Producer

Obligation follows a statutory cascade and the shape differs by state. Washington, Maryland, Minnesota, and Maine run five tiers: the manufacturer for goods under its own brand or in packaging lacking brand identification; the licensee that makes or sells under a brand owned by another party; the brand owner; the U.S. importer where none of those exists in the United States; then the person that first distributes the item into the state. The Oregon and Colorado statutes run three tiers: own-brand or unbranded manufacturer, licensee, then the importer into the United States (ORS 459A.866(1)(a); C.R.S. 25-17-703(30)(a)); in Oregon there is no brand-owner tier. The Colorado rule then sets the order of obligation in four steps (6 CCR 1007-2 Part 1, s18.2.2(A)): the brand owner directing or performing the manufacturing of the packaging, then the brand or trademark licensee directing it, then the manufacturer where no brand is identified, then the importer. California reaches a manufacturer that owns or is the licensee of the brand at tier 1, then the brand owner or exclusive licensee, then whoever sells or distributes in or into the state, with no importer tier (PRC 42041(w)). Store-brand and private-label goods usually land on the retailer whose brand appears, but the test differs in two states. In Oregon the retailer is reached only where it directs the manufacturing, including setting packaging specifications, and ordering finished goods for resale in the normal course of business is not directing manufacturing (OAR 340-090-0860(1)(a)). In California an in-state manufacturer that owns the brand or is licensed to manufacture the goods is the producer ahead of the brand owner (14 CCR 18980.1.1(c)(1)).

CA: Three tiers under PRC 42041(w): (1) a manufacturer that owns or is the licensee of the brand, (2) the brand owner or, if not in the state, the exclusive licensee, (3) whoever sells, offers for sale, or distributes in or into the state; no importer tier, and a sale is deemed to occur in California when the covered material is delivered to the purchaser there (42041(w)(5)). Under 14 CCR 18980.1.1(c)(3)(C) (and (d)(3)(C) for food service ware), a licensee that acquired its right to the brand under a sublicense or franchise agreement with another person in the state is not the producer; that other person, typically the in-state franchisor, is the licensee and the producer. General framework; confirm the statutory definition and your role in PEPRS before registering.

What You Report and Covered Materials

These attributes are the fee inputs, so they are best captured at design time. CAA collects this once through its producer portal and maps it to each state a producer sells into, and state-specific rules still apply. Retain supporting records for at least 3 years, the minimum 14 CCR 18980.6.8(d) and 18980.7.7(d) set, to substantiate reports, exemptions, and credits.

Covered Material Category (CMC) for each component
Net weight per component, per unit (grams)
Units / volume placed on the state market in the reporting year
Post-consumer recycled (PCR) content %, with documentation
Recyclability designation (per the state list) and reuse / refill status
Format and food-contact flag

California's Covered Material Categories (CMC) list plus CalRecycle material characterization determine recyclability (and interact with SB 343 labeling). Current vintage: the January 2026 update, 95 categories across 6 material classes, published December 31, 2025 and the first version to carry an estimated recycling rate per category. The CMC list is CalRecycle's recyclability determination for SB 54 purposes only, and CalRecycle states that it is not a determination of whether any particular label violates PRC 42355.51 or 42357. Covered materials / recyclability list →

Design Levers: PCR, Source Reduction, and Toxics

Confirmed

PCR earns a source-reduction bonus (2027) and counts toward SB 54 goals. AB 2253, which would have set documentation rules for voluntary recycled content claims on all products from Jan 1, 2030 and permitted proportional attribution under ISO 22095-2:2026, was vetoed by the Governor on Sep 27, 2026. Document PCR at the resin / lot level.

SB 54 requires 25% source reduction of plastic covered material and 100% of covered material to be recyclable or compostable by January 1, 2032, with a 65% plastic recycling rate by 2032 (30% interim by 2028). Producers filed an Individual Source Reduction Plan (ISRP) with CAA by August 3, 2026, CAA's effective deadline because August 1 fell on a Saturday, forecasting progress toward the interim reduction milestones (2027 and 2030) as well as the 2032 target. The targets are a collective responsibility met through the PRO plan.

California applies the Toxics-in-Packaging heavy-metals limit (no intentional use; 100 ppm total of lead, cadmium, mercury, and hexavalent chromium) and bans regulated PFAS in plant-fiber-based food packaging from January 1, 2023 (HSC 109000(b), AB 1200). Hazardous material identified by OEHHA, DTSC, or CalRecycle is an SB 54 eco-modulation malus factor (PRC 42053(e)(4)).

Sources: CA SB 54; AB 1200 (HSC 109000, PFAS in plant-fiber food packaging); CA Toxics in Packaging (HSC 25214.11 et seq.); CAA CA Program Plan Ch. 10. The EPR fee calculator models the dollar impact of a design change, and this section does not estimate fees.

Source Reduction Plans (ISRP): What Producers File

Signaled

Individual producers of plastic covered packaging that participate in CAA filed an Individual Source Reduction Plan (ISRP) with the Circular Action Alliance (CAA) through its Producer Portal, which was due August 3, 2026, the effective deadline CAA set because August 1 fell on a Saturday. CalRecycle sets no ISRP deadline and neither receives nor reviews these plans. There is no public fill-in template, but CAA's Individual Source Reduction Plan Guidance is available to registered producers in the CAA Producer Portal, alongside the reporting fields. The plan is a forecast of how much plastic you plan to source reduce toward the statutory reduction targets, and it may be refined over time.

Reduction is measured against your 2023 baseline of plastic covered material:

Milestone	Total plastic reduction	Minimum via reuse or refill (2032: reuse, refill, or elimination)
Jan 1, 2027	10%	2%
Jan 1, 2030	20%	4%
Jan 1, 2032	25% (by weight and by component / unit count)	10%

Four pathways plus one capped credit: reuse and refill; elimination of components; switching to alternative non-plastic materials; and right-sizing, lightweighting, concentrating, or shifting to bulk. Post-consumer recycled content is not source reduction: PRC 42041(aj)(2) excludes switching from virgin covered material to PCR. PRC 42057(a)(2)(B)(i) separately allows no more than 8 percent to be met through an alternative compliance formula the PRO must develop and CalRecycle must approve. No approved formula exists yet.

Measurement and disclosure details: CalRecycle's guidance and CAA's plan measure every milestone by plastic component count as well as by weight, so both need tracking from the start, and a filed ISRP can be subject to public records requests, so every claim in it should be defensible.

Sources: CA SB 54 (PRC 42041(aj), PRC 42057(a)(2)(B)(i)); CAA California Program Plan filed June 15, 2026, section 6.2.3.3; CAA California producer guidance (circularactionalliance.org/california); reduction targets confirmed by statute, deadline and filing mechanics signaled per CAA guidance. A step-by-step readiness checklist is on the source reduction plan page.

Statute and Rule Text

Statute: SB 54 (Allen, Ch. 75, Statutes of 2022), codified at Cal. Pub. Res. Code 42040 et seq. Read the statute →

Implementing rule: 14 CCR Div. 7, Ch. 11.1, Arts. 1 to 14, sections 18980.1 to 18980.14, plus Ch. 11.5 section 18981. Approved by the Office of Administrative Law and filed with the Secretary of State on May 1, 2026, effective on filing. Read the rule →

Primary sources. Where the statute and an agency summary disagree, the statute and the adopted rule control.

Frequently Asked Questions

I sell to a distributor outside California who ships into the state. Are those my California sales?

For producer status it makes no difference, because the obligation applies when your covered material is sold or distributed in the state by any person (14 CCR 18980.5(b)). PRC 42041(w)(5) says that "for purposes of this chapter, the sale of covered materials shall be deemed to occur in the state if the covered materials are delivered to the purchaser in the state." The scope is the whole chapter, not just the producer definition, so it governs the PRC 42060 small producer threshold as well as the producer cascade. If you deliver to a distributor outside California and that distributor ships the goods in, your purchaser did not take delivery in California, but the provision does not settle whether that sale is yours in the state, because it says "if" and not "only if." Producer status does not turn on where your own sale is deemed to occur, because tier 1 asks whether the manufacturer or brand owner is in the state (14 CCR 18980.1.1(a), (c)), the obligation applies if the covered material is sold or distributed in the state by any person (14 CCR 18980.5(b)), and the seller and distributor tier at PRC 42041(w)(3) applies only where no producer exists under (w)(1) or (w)(2).

What are California's producer registration options under SB 54?

California offers three pathways: (1) join the Circular Action Alliance as a Participant Producer signatory; (2) register independently with CalRecycle through PEPRS; or (3) apply for a Small Producer Exemption (less than $1 million CA gross sales). The exemption is not automatic, and it does not end registration. PRC 42060(a)(5) exempts the producer from the chapter except the PRC 42050(b) recyclable-or-compostable duty from 2032, and 14 CCR 18980.5.2(e) requires an exempted small producer to keep its registration current. An approved exemption runs two years from approval, and renewal is filed between 120 and 90 days before it expires (14 CCR 18980.5.2(b) and (c)).

Does California's de minimis exemption apply automatically to small producers?

No. The less than $1 million California gross sales threshold requires a formal application through PEPRS, and CalRecycle can deny it. The exemption must be renewed, and you must receive written confirmation before excluding materials from supply reports. An approved exemption is valid for two years from the approval date, and the renewal application is filed between 120 and 90 days before expiry (14 CCR 18980.5.2(b), (c)). CAA will not file a small producer exemption on your behalf.

When do California EPR fees begin?

Annual per-category fees begin in 2027 once CalRecycle approves the program plan. CAA scheduled the one-time 2026 Early Fee invoices for the week of August 17, 2026, payable within 45 days of the invoice date, and its newsletter of September 29, 2026 confirms the invoices were issued. The $500 million Plastic Pollution Mitigation Fund surcharge is collected by CDTFA: the statutory deadline for CalRecycle to send CDTFA the liable-person list is March 1, 2027, and the payment deadline is 30 days from CDTFA's assessment (PRC 42064).

What is the penalty for violating California SB 54?

Up to $50,000 per day per violation ($25,000 for a small producer), the highest fixed per-day civil penalty ceiling in force in any U.S. packaging EPR state; Minnesota authorizes up to $100,000 per day for a third violation within five years after stewardship plan approval (115A.1462(c)). Violations include selling covered products without registering, failing to file annual supply reports, and non-payment of fees.

What are California's SB 54 source reduction targets?

SB 54 requires the PRO, on behalf of its participant producers, to source reduce plastic covered material against a 2023 baseline by 10% by 2027, 20% by 2030, and 25% by 2032. CalRecycle's guidance and CAA's plan measure every milestone by both weight and plastic component count. Separate minimums apply: at least 2% by 2027 and 4% by 2030 through shifting to reusable or refillable packaging (PRC 42057(a)(2)(C), (D)), and at least 10% by 2032 through reuse, refill, or eliminating a plastic component (42057(a)(2)(A)). CAA's plan Table 1 groups all three milestones as reuse, refill, and elimination.

What is an Individual Source Reduction Plan (ISRP) and when is it due in California?

An ISRP is a forward-looking plan each producer of plastic covered packaging files with the Circular Action Alliance through its Producer Portal, showing how it will meet SB 54's source reduction targets. It was due August 3, 2026, the effective deadline CAA set because August 1 fell on a Saturday. CalRecycle sets no ISRP deadline and neither receives nor reviews these plans.

Can recycled content (PCR) count toward California's source reduction requirement?

Not as a pathway. PRC 42041(aj) excludes switching from virgin material to postconsumer recycled content from the definition of source reduction. PRC 42057(a)(2)(B)(i) lets no more than 8 percent of the plastic covered material be source reduced through an alternative compliance formula the PRO develops and CalRecycle approves, on a sliding scale of virgin to PCR plastic, and no formula has been approved. The four recognized pathways are reuse and refill, eliminating components, switching to non-plastic materials, and right-sizing or lightweighting.

California Packaging EPR Law: Producer Compliance Guide

The 2026 early fee and the 2027 per-CMC fees

Penalties and the 2032 recyclability requirement

Registration and the small producer exemption

Where a sale counts as a California sale

Source reduction targets and the ISRP

Fee Schedule by Material

Eco-Modulation Factors

Fee Reductions (Bonuses)

Fee Increases (Maluses)

Litigation Status

Program Plan Status

Reporting Deadlines and Program Dates

Program Notes

Covered Products Scope

Exemptions and Exclusions

Responsible Producer

What You Report and Covered Materials

Design Levers: PCR, Source Reduction, and Toxics

Source Reduction Plans (ISRP): What Producers File

Statute and Rule Text

Frequently Asked Questions

Explore California Data in the Full EPR Atlas Hub