May 21, 2026|Product Liability Insider
By: Julia Kilpatrick, May 21, 2026
The first major compliance deadlines under SB 54 are quickly approaching and require immediate attention. California businesses that qualify as “producers” must act now to avoid regulatory risks.
What is SB 54?
SB 54 applies to companies selling packaged products or food service ware in California and will fundamentally change the way recycling is managed throughout the state. Rather than having local governments take on responsibility for packaging recycling, California has shifted the burden to businesses that place packaging into the stream of commerce. At its core, SB 54 is intended to reduce the amount of packaging waste, such as single-use plastics, entering the environment. By 2032, SB 54 requires:
- 100% of single-use packaging and single-use plastic food service ware sold in the state be recyclable or compostable;
- 65% of single-use plastic packaging and single-use food service ware is recycled; and
- 25% reduction, compared to 2023, in the sale or distribution of single-use plastic packaging and single-use food service ware.
Under the statute, producers are required to register and submit data by May 31, 2026—30 days after SB 54 went into effect on May 1, 2026.
A “Producer” Under SB 54
The first step is to determine whether your company is a “Producer” under the statute. Under SB 54, a “Producer” generally includes any entity that manufactures a product using covered materials and owns or licenses the brand under which the product is sold, distributed, or used in California.
Certain businesses may also qualify as an “Independent Producer” or “Small Producer” however, both exemptions require registration and confirmation of eligibility under SB 54. The program is designed so that compliance is a condition of market access.
California is not alone, 7 U.S. states have comprehensive packaging Extended Producer Responsibility (“EPR”) laws similar to SB 54 including Oregon, Colorado, Maine, Minnesota, Maryland and Washington. These programs generally follow a similar framework: producers must register, report packaging data, join a producer responsibility organization (PRO), and fund recycling systems.
Registration with Circular Action Alliance
Unless a company qualifies as an “Independent Producer” or “Small Business,” it is required to register with Circular Action Alliance (CAA), California’s designated producer responsibility organization (PRO).
The registration deadline is June 1, 2026. Registration with CAA is required to submit reports, participate in the program, and pay applicable fees.
Two Key Reports Due May 31, 2026
Two critical reporting obligations under SB 54 are required by the reporting deadline.
2023 Baseline Supply Report – A baseline supply report detailing the amount and type of packaging supplied into California in 2023 will inform fees for subsequent years. Be sure to confirm its accuracy because the baseline will apply through 2032.
2025 Source Reduction Report – In addition to supply data, Producers must submit a source report, documenting the amount of plastic used in 2025; and any reductions achieved relative to the 2023 baseline.
Missing the May 31, 2026 SB 54 reporting deadline (for the Supply Report and Source Reduction Report) can create serious regulatory, financial, and operational risks.
Recommended Action Steps for California Businesses by May 31, 2026
- Confirm your status as a producer
- Register with Circular Action Alliance (or confirm exemption eligibility)
- Submit 2023 Baseline Packaging Data
- Submit 2025 Source Reduction Report
- Budget for Recycling Fees
- Track recycle and recyclability rates
With the implementation of SB 54, businesses will face ongoing obligations affecting packaging, operations, and reporting requirements. If you would like assistance evaluating your obligations, preparing reports, or developing your compliance strategy, Buchalter’s Product Liability practice group is available to support your business.
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