CalRecycle delays SB 54 regulations, lawmakers press for timeline

CalRecycle officials told the Assembly Budget Subcommittee No. 4 that they have delayed the formal regulatory package to implement SB 54, the state's producer responsibility law for plastics, to address significant stakeholder comments and unresolved technical issues.

The department's chief deputy, Mindy McIntyre, said SB 54 is "the most ambitious reform of plastics and packaging management in state history," and that the package includes novel requirements such as source-reduction targets and an eco-modulated fee that require careful development. She told lawmakers CalRecycle will reinitiate the regulatory process and seek public comment on revised language. "We are committed to SB 54," she said during the hearing, adding the agency must "get it right" because other jurisdictions will look to California as a model.

Legislators pushed for a clearer timeline. Chair Bennett and several members underscored the statutory and public expectations attached to SB 54 and expressed frustration at the agency's public explanation that it needs more time. Members repeatedly asked which specific regulatory elements are causing the delay and whether the department could meet a goal of having rules in place by 2026 so that producer responsibility organizations (PROs) and producers can plan for the statutory deadlines that follow.

CalRecycle said the first statutorily required plan from the PRO is due Jan. 1, 2027, and the department's stated goal is to have regulations in place well ahead of that deadline so the PRO has the guidance it needs. McIntyre said the department will rely on the regulatory process to collect additional stakeholder input; she noted the prior public comment periods generated many submissions that require careful review and therefore a new round of rulemaking will be necessary.

Lawmakers sought detail on whether the delay stemmed primarily from industry concerns, technical complexity in enforcing source reduction, or the mechanics of the eco-modulated fee. CalRecycle said comments came from a broad set of stakeholders (industry, local governments, environmental groups) and that the agency must reconcile those views while meeting statutory goals.

Several public commenters at the hearing urged the Legislature to continue close oversight and pressed the administration to complete regulations quickly. Environmental and recycling advocates said the delay threatens near-term progress on reducing plastic pollution and could increase costs for local governments and ratepayers if producers do not assume the costs of collection and treatment as intended by SB 54.

CalRecycle and committee staff agreed the department will return with more specific timing information at a later budget round so the Legislature can assess whether statutory deadlines remain achievable.