Active Program

California Packaging EPR: Producer Compliance Guide

California's SB 54 / AB 2784 (2022) is the largest U.S. packaging EPR program, projected to collect approximately $500 million per year from producers of covered plastic packaging and paper bags sold in the state. Administered by CalRecycle in partnership with the Circular Action Alliance (CAA), the program requires registration, annual supply reporting, and fees beginning in 2027. California carries the highest penalty of any U.S. EPR state -- $50,000 per day per violation -- and imposes a 100% recyclability mandate on all packaging by 2032. Three registration pathways exist: joining CAA, registering independently through PEPRS, or applying for a small producer exemption (less than $1 million California gross sales -- the exemption requires a formal application and is not automatic).

Governing Law
SB 54 / AB 2784 - Plastic Pollution Prevention & Packaging Producer Responsibility Act (2022)
Fee Start
2027 (post program plan approval)
Max Penalty
$50,000/day/violation
Administering Agency
CalRecycle
PRO / Administrator
Circular Action Alliance
De Minimis
<$1M CA gross sales - must apply
Fees are not yet active. Amounts shown are a DRAFT estimate: the midpoint of CAA's 2027 EPR Base Fee Schedule low-to-high range (Table 5, program plan filed June 15, 2026), with the per-pound plastic surcharges (Reuse Investment + PPMF weight) folded in for plastics. CAA publishes the final 2027 schedule in October 2026.

Fee Schedule by Material

Base rates before eco-modulation. Final fee = Tonnage x Rate x Eco-Modulation Multiplier. All amounts are projections; actual rates set upon program plan approval.

Material / Packaging TypeRate / Metric TonTier
Aluminum, cans $380 (est.) Tier 2-3
Clear PET (#1) $1,600 (est.) Tier 4
HDPE Natural (#2) $1,600 (est.) Tier 4
Steel $260 (est.) Tier 2-3
Uncoated Paper/Board $160 (est.) Tier 1
Corrugated $80 (est.) Tier 1
HDPE Pigmented (#2) $1,580 (est.) Tier 4
PP (#5) $3,880 (est.) Tier 4
Glass $40 (est.) Tier 1
LDPE Film / Mono-PE $1,480 (est.) Tier 4
PS Rigid (#6) $1,640 (est.) Tier 4
Expanded Polystyrene $2,640 (est.) 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, 2026; nine PRC 42053(e) factors. Proposed and phased; per-factor VALUES are NOT yet set (CAA publishes bonus and malus rates each October, beginning October 2026). Draft program plan, not yet approved.

Eco-modulation adjusts fees based on packaging design and recyclability attributes.

Fee Reductions (Bonuses)

2027: post-consumer recycled (PCR) content bonus (per-pound, APR-certified; rate announced in 2026) 2027: source reduction tiered bonus (Tier 1 and higher Tier 2) financed by source-reduction maluses 2027: high-recycling-rate bonus, applied passively to the base fee of CMCs with relatively high recycling rates 2028: additional design-for-recyclability factors 2029+: use of renewable materials for plastic; certified compostable materials without toxic additives

Fee Increases (Maluses)

2027: non-recyclability malus, applied passively to the base fee of CMCs not designated recyclable on CalRecycle's SB 54 list (e.g., PVC) 2028: malus on packaging features that cause recycling issues, including carbon-black or other pigments that render packaging undetectable to near-infrared (NIR) sorters (active; producer self-attestation, audited) Presence of hazardous materials, or toxic heavy metals, pathogens, or additives in the packaging (PRC 42053(e))

Multiplier floor: Not yet set - CAA publishes bonus and malus values each October (first rates October 2026), invoiced the following January

ℹ️
California eco-modulation is now proposed in the CAA California Program Plan (filed June 15, 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 (rate announced in 2026 so producers can plan). Additional factors phase in for the 2028 program year (design-for-recyclability and a malus on packaging features that disrupt recycling, including carbon-black or NIR-undetectable pigments, applied as an active malus with producer self-attestation) and 2029 and beyond (renewable plastic, certified compostables without toxic additives). The percent or dollar VALUE of each bonus and malus is NOT yet set; CAA publishes actual bonus and malus rates each October (beginning October 2026) alongside the fee schedule, invoiced the following January. This carbon-black/NIR 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. Do not state specific CA eco-mod percentages - none are established yet.

Key Dates and Timeline

Mar 7, 2025
Gov. Newsom directs CalRecycle to restart SB 54 rulemaking
Mar 9, 2026
AB 2253 (mass balance) referred to committee
Late May 2026
AB 2253 passed Assembly 42-19; ordered to Senate
Mar 17, 2026
SB 343 constitutional challenge filed (21 organizations; 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; written opinion pending
Jun 22, 2026
17-state AG coalition + NAW filed federal challenge to SB 54 (E.D. Cal.)
May 31, 2026
Annual Supply Reports + CY2023 Baseline Source Reduction Report due
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 1, 2026
Individual Source Reduction Plans due
Aug 14, 2026
Public comment period on the draft program plan closes
Aug 2026
CAA invoices early pre-program fees (one installment, based on CY2025 data)
Oct 2026
CAA expected to file revised program plan; final 2027 fee schedule published
Jan 1, 2027
Formal program beginning; CalRecycle approves plan
Mar 1, 2027
First California Plastic Pollution Mitigation Fund payment due ($500M/yr)
Jul 1, 2027
First CAA administrative fees remitted to CalRecycle

Covered Products Scope

All covered plastic materials placed on the CA market, including primary, secondary, and tertiary plastic packaging. Also covers paper bags. Excludes: packaging for prescription drugs, packaging integral to a product's function, and containers regulated under CA Beverage Container Recycling Program.

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)
<$1M California gross sales. IMPORTANT: this exemption is NOT automatic - producers must apply through PEPRS and receive CalRecycle confirmation. Apply annually.
B2B / Tertiary Packaging
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. Only very narrow categorical exclusions apply (e.g., hazmat containers, beverage containers under the CRV program). Producers selling exclusively to business customers are still subject to registration, reporting, and fee obligations.
Medical Device and Pharmaceutical
Packaging for FDA-regulated medical devices and prescription drugs explicitly excluded. Claim requires filing a conflict notice with CalRecycle through PEPRS, documenting the conflict between SB 54 and a mandatory FDA or USDA rule.
Agricultural Packaging
Packaging for agricultural commodities where the grower both harvests and packages the product on-site (at the site where it was grown or raised) excluded from producer obligations
Long-Term Storage / Protection
Packaging for goods designed for long-term protection or storage where the product has a lifespan of 5+ years excluded
Reusable / Refillable Packaging
Reusable/refillable packaging designed for multiple uses, built durably, and supported by appropriate return infrastructure is fee-exempt
California exclusions are generally not self-executing - producers must actively apply through PEPRS. The de minimis exclusion requires annual re-application. Medical device exclusion requires documented FDA/USDA conflict.

Frequently Asked Questions

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 requires a formal annual application -- it is not automatic.
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. CalRecycle can deny it. Producers must re-apply annually and must receive written confirmation before excluding materials from supply reports.
When do California EPR fees begin?
Mandatory fees begin in 2027 after CalRecycle approves the program plan (expected January 2027). CAA is expected to invoice an early pre-program fee in August 2026. The first Plastic Pollution Mitigation Fund payment is due March 1, 2027.
What is the penalty for violating California SB 54?
$50,000 per day per violation -- the highest penalty of any U.S. packaging EPR state. Violations include selling covered products without registering, failing to file annual supply reports, and non-payment of fees.