Newsom bows to industry pressure, stalls California’s plastic reduction plan

Sacramento, California – California Governor Gavin Newsom has directed the state’s Department of Resources Recycling and Recovery (CalRecycle) to restart negotiations on Senate Bill 54 (S.B. 54), delaying the implementation of the state’s landmark plastic reduction law.

S.B. 54, also known as the Plastic Pollution Prevention and Packaging Producer Responsibility Act, aims to reduce single-use plastic packaging and foodware waste by establishing an extended producer responsibility (EPR) program. Newsom, who signed the bill into law in 2022, has now raised concerns over the program’s projected costs.

“The governor is directing CalRecycle to restart these regulations to ensure California’s bold recycling law can achieve its goal of cutting plastic pollution and is implemented fairly,” said Daniel Villaseñor, Newsom’s deputy director of communications, in a statement to the Los Angeles Times.

A state analysis found that implementing S.B. 54 would cost California approximately $36 billion, with an estimated $300 cost per household. However, the same analysis projected offsetting benefits, including an expected $19.2 billion increase in personal income and environmental and health benefits valued at $40.3 billion.

CalRecycle emphasized the need to balance environmental goals with economic feasibility. “We will continue to work with industry, advocates, and other interested parties to develop rules that ensure California’s plastic pollution law balances the need to cut plastic pollution with the importance of minimizing costs to families and small businesses,” the agency stated.

State Senator Catherine Blakespear, a supporter of S.B. 54, expressed frustration over the delay, stating that Newsom’s decision has significantly slowed progress.

“The statutory timelines in S.B. 54 have not changed, and we need to remain committed to meeting them despite this regulatory step back,” Blakespear said. “Producer responsibility for plastic packaging will bring financial relief to residents and businesses that are facing repeated recycling and waste management rate hikes.”

The plastics industry welcomed Newsom’s decision to revisit the regulations, with Matt Seaholm, CEO of the Plastics Industry Association, calling it an opportunity to create a more practical approach.

“The Governor’s directive presents a critical opportunity for California policymakers to develop a workable recycling framework that incorporates industry expertise and meets environmental objectives,” Seaholm said.

Several environmental organizations condemned the delay, accusing Newsom of prioritizing industry interests over public and environmental health.

“We are disappointed that Gov. Gavin Newsom failed to implement what he calls ‘the most significant overhaul of California’s plastics and packaging recycling policy in history,’” said a joint statement from the Monterey Bay Aquarium, Ocean Conservancy, and Oceana.

Miho Ligare of the Surfrider Foundation criticized industry influence on the decision. “This is another unfortunate example of industry undermining public processes to disrupt and maintain the status quo,” Ligare said.

Despite the setback, the legislation’s core requirements remain intact. The bill mandates that by 2032:

100% of single-use packaging and plastic foodware in California must be recyclable or compostable.
65% of single-use plastic packaging and foodware must be recycled.
The amount of single-use plastic packaging and foodware sold in the state must decrease by 25%.
Additionally, producers must contribute $5 billion over ten years to address the environmental impact of plastic pollution.

The Circular Action Alliance (CAA), the organization tasked with overseeing the law’s implementation, stated it respects Newsom’s decision and remains committed to achieving S.B. 54’s goals.

“The additional time provided for refining the regulations will allow us to address critical elements and ensure the program’s long-term success,” CAA said.