California’s Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54) is generating growing debate across the state’s agriculture sector, with producer groups warning of higher compliance costs while supporters argue the law will deliver long-term environmental and economic benefits.

As implementation deadlines approach, industry organizations, environmental groups and state agencies continue to dispute the potential impact of one of the United States’ most ambitious extended producer responsibility (EPR) programs for packaging.

Agriculture Groups Raise Cost Concerns

Several agricultural organizations, including Western Growers, have called for amendments to the legislation and additional implementation time.

Industry representatives say fresh produce businesses could face significant costs associated with:

• Packaging redesign
• New processing equipment
• Compliance reporting
• Producer responsibility fees

They also argue that some packaging changes could be difficult to implement without affecting food safety, particularly for fresh produce requiring protective packaging during transportation and distribution.

According to industry groups, compliance costs may ultimately be passed through the supply chain, resulting in higher food prices for consumers.

Small Farmers Express Support

Not all agricultural organizations oppose the legislation.

The Community Alliance with Family Farmers (CAFF), representing many smaller farms that qualify for exemptions under the law, said it supports the legislation’s environmental objectives.

The organization believes reducing packaging waste could lower long-term public spending on waste management and environmental remediation while encouraging more sustainable packaging systems.

California’s legislation exempts many smaller producers, including businesses with annual gross sales below US$1 million and certain growers that harvest and pack products directly in the field.

SB 54 Sets Ambitious Packaging Targets

Signed into law in 2022, SB 54 establishes long-term targets for reducing packaging waste across California.

By 2032, the legislation aims to achieve:

• A 25% reduction in single-use plastic packaging.
• A 65% recycling rate for single-use plastics.
• 100% recyclable or compostable single-use packaging.

Businesses that fall within the program will contribute producer responsibility fees, which will help finance improvements to California’s recycling and packaging recovery systems.

Industry Faces New Compliance Deadlines

California producers recently faced an August 1 deadline to submit plastic packaging reduction plans to the Circular Action Alliance (CAA), the producer responsibility organization responsible for administering the state’s packaging stewardship program.

CAA submitted its implementation plan to California regulators in June, with public consultation continuing before final approval is expected by January 1, 2027.

Once approved, the program will move into full implementation.

Legal Challenges Continue

SB 54 also remains the subject of multiple legal challenges.

Business organizations, including the National Association of Wholesaler-Distributors (NAW), have filed lawsuits questioning aspects of state packaging EPR programs, while some environmental organizations argue California’s legislation does not go far enough to reduce plastic pollution.

Similar packaging producer responsibility programs are also being implemented in states including Oregon and Colorado, reflecting a broader shift toward producer-funded recycling systems across the United States.

Packaging Industry Watches Closely

For packaging manufacturers, converters and food producers, California’s SB 54 is becoming a significant policy benchmark for future packaging regulation.

The legislation is expected to influence decisions on material selection, package design, recyclability, and extended producer responsibility compliance, particularly as more U.S. states consider similar packaging regulations.

While debate continues over implementation costs and timelines, the direction of travel is becoming increasingly clear: packaging producers are likely to face greater responsibility for the environmental performance of packaging throughout its lifecycle.

Last Updated on 03/08/2026 by Jota Machinery