Cal Cities urges CalRecycle to specify local cost recovery in draft plastics and packaging regulations
By Melissa Sparks-Kranz, legislative affairs lobbyist (environmental quality), and Zack Cefalu, legislative affairs and policy analyst
Last week, Cal Cities submitted public comments seeking clarity on how the state will hold producers accountable when reimbursing cities under California’s single-use plastic and packaging material recycling law, as promised by SB 54 (Allen, 2022).
The historic law requires producers to manage and fund the full lifecycle of single-use plastic and packaging materials. The producer responsibility organization (PRO), made up of plastic and packaging manufacturers, must establish a plan to ensure manufacturers fund the full costs incurred by cities and waste haulers for recycling and composting the materials.
The California Department of Resources, Recycling, and Recovery (CalRecycle) released the first draft regulations earlier this year, with a public comment period open until May 8. In its submission, Cal Cities urged CalRecycle to clarify the law’s intent for full local cost recovery in the draft regulations.
The PRO must also create and finance a $5 billion plastic pollution mitigation fund, implemented over ten years.
What did Cal Cities advocate for in the draft regulations?
Cal Cities called for greater specificity on how the PRO will reimburse local governments — including identifying a process to reach full reimbursement. The draft regulations did not identify any eligible reimbursement costs or how the PRO will engage cities when developing its plan and budget over the next several years.
Cal Cities made it clear that coordination between the PRO and local stakeholders is critical to successfully implementing the law. This work will inform how cities receive full reimbursement, the funding mechanism for disbursement, and how to settle implementation disputes between cities and the PRO. Absent these protections, implementation of the new law could be extremely challenging and riddled with litigation.
SB 54 requires CalRecycle to establish and distribute the list of reimbursable materials by July 1. Cal Cities recommended that CalRecycle specify the date by which cities must collect materials for recycling or composting and recommended that the date be one month after CalRecycle approves the PRO’s plan. This would give local jurisdictions time to create or change recycling programs after the list of materials is approved. It would also allow reimbursement to occur immediately following the approval of the PRO plan and budget.
CalRecycle anticipates approving the PRO plan and budget in 2026.
Looking forward
Cal Cities is actively engaged in the SB 54 rulemaking process and with the PRO to ensure that local jurisdictions are protected and fully funded throughout implementation. The rulemaking will continue through the end of this year. CalRecycle expects final regulations to be effective by Jan. 1, 2025.
For questions or more information about Cal Cities’ ongoing work on SB 54, please contact Environmental Quality Lobbyist Melissa Sparks-Kranz.